Digital distribution of video games: Difference between revisions

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{{short description|none}}
{{About||other uses|Digital distribution}}
{{Use mdy dates|date=SeptemberJune 20172024}}
{{Video game industry}}
In the [[video game industry]], digital distribution is the process of delivering [[video game]] content as digital information, without the exchange or purchase of new physical media such as [[ROM cartridge]]s, [[magnetic storage]], [[optical disc]]s and [[flash memory]] cards. This process has existed since the early 1980s, but it was only with network advancements in bandwidth capabilities in the early 2000s that digital distribution became more prominent as a method of selling games. Currently, the process is dominated by [[Digital distribution|online distribution]] over [[Internet access|broadband Internet]].
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To facilitate the sale of games, various video game publishers and console manufacturers have created their own platforms for digital distribution. These platforms provide centralized services to purchase and download digital content for either specific [[video game console]]s or personal computers. Some platforms may also serve as [[digital rights management]] systems, limiting the use of purchased items to one account.
 
Digital distribution of video games is becoming increasingly common, with major publishers and retailers paying more attention to digital sales, including [[Steam (service)|Steam]], [[PlayStation Store]], [[Amazon.com]], [[Game (retailer)|GAME]], [[GameStop]], [[Xbox Live Marketplace]], and others. It is particularly popular for [[PC game|PC games]]s. According to a study conducted by [[SuperData Research]], the volume of digital distribution of video games worldwide was $6.2 billion per month in February 2016,<ref>{{Cite web|url=https://www.playstationlifestyle.net/2016/03/24/february-2016-digital-sales-report-industry-reaches-6-2-billion-console-sales-34/|title=February 2016 Digital Sales Report: Industry Hits $6.2 Billion, Console Sales up 34%|date=March 24, 2016|website=PlayStation LifeStyle|access-date=August 14, 2020}}</ref> and reached $7.7 billion per month in April 2017.<ref>{{Cite web|url=https://venturebeat.com/2017/05/25/superdata-digital-gaming-hit-7-7-billion-in-april/|title=SuperData: Digital gaming hit $7.7 billion in April|date=May 25, 2017|access-date=August 14, 2020}}</ref>
 
==History==
 
===1980s===
Before Internet connections became widespread, there were few services for digital distribution of games, and physical media was the dominant method of delivering video games. One of the first examples of digital distribution in video games was [[GameLine]], which operated during the early 1980s. The service allowed [[Atari 2600]] owners to use a specialized cartridge to connect through a [[Telephone line|phone line]] to a central server and rent a video game for 5–10 days. The GameLine service was terminated during the [[North American video game crash of 1983|video game crash of 1983]]. From 1987 to 2003, [[Nintendo|Nintendo's]] Japan-only [[Family Computer Disk System#Disk Writer and Disk Fax kiosks|Disk Writer kiosks]] allowed users to copy from a [[jukebox]] style of rotating stock of the latest games to their [[Floppyfloppy disk|floppy disks]]s. They can keep each one for an unlimited time, and play at home on the [[Famicom]] and [[Famicom Disk System]] for {{JPY|500}}, then about {{US$|3.25}} and 1/6 of the price of many new games.<ref name="Mysterious curiosities of the FDS">{{cite web | title=Mysterious curiosities of the Famicom Disk System | first=Brandon | last=Dalker | date=July 8, 2011 | work=Nsidr | url=https://www.nsidr.com/archive/mysterious-curiosities-of-the-famicom-disk-system | access-date=July 29, 2019}}</ref><ref name="Revisiting the FDS">{{cite web | title=Revisiting the Famicom Disk System: mass storage on console in 1986 | first=John | last=Linneman | work=Eurogamer | date=July 27, 2019 | url=https://www.eurogamer.net/articles/digitalfoundry-2019-retro-revisiting-famicom-disk-system | access-date=July 29, 2019}}</ref><ref name="Game Over">{{Cite book|url=https://archive.org/details/0966961706 |title=Game Over: How Nintendo conquered the world|last=Sheff|first=David|date=1994|publisher=Vintage Books|isbn=9780307800749|edition=1st Vintage books|location=New York|oclc=780180879 | access-date=July 27, 2019}}</ref>{{rp|75–76}} It was called "truly ground-breaking for its time and could be considered a forerunner of more modern distribution methods [such as] Xbox Live Arcade, PlayStation Network, and Steam".<ref name="Slipped Disk">{{cite web | title=Slipped Disk - The History of the Famicom Disk System | date=November 20, 2010 | first=Damien | last=McFerran | publisher=NintendoLife | url=http://www.nintendolife.com/news/2010/11/feature_slipped_disk_the_history_of_the_famicom_disk_system | access-date=September 5, 2014}}</ref> There were also examples such as Soft bender TAKERU for PCs, which also served as a distribution system for karaoke.<ref>{{cite thesis |last1=Nobushige |first1=Kobayashi |last2=Yuhsuke |first2=Koyama |date=March 31, 2020 |title=The Early History of the Hobbyist Production Field of Video Games and its Impacts on the Establishment of Japan's Video Game Industries |journal=Replaying Japan |volume=2 |publisher=Ritsumeikan University |doi=10.34382/00013364 |url=http://doi.org/10.34382/00013364 |issn=2433-8060}}</ref>
 
===1990s===
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====PC====
An early innovator of the digital distribution idea on the [[Personal computer|PC]] was [[Stardock]]. In 2001 Stardock released the [[Stardock Central]] to digitally distribute and sell its own [[Personal computer|PC]] titles, followed by a service called ''Drengin.net'' with a yearly subscription pay model in summer 2003. In 2004, the subscription model was substituted by ''TotalGaming.net'' which allowed individual purchases or pay an upfront fee for tokens which allowed them to purchase games at a discount. In 2008, Stardock announced [[Impulse (software)|Impulse]] a third-generation digital distribution platform, which included independent third-party games and major publisher titles.<ref name="ImpulseGoal">{{Cite web|url=https://www.gamerswithjobs.com/node/1180761|title=Stardock Impulse Details|website=Gamers With Jobs}}</ref> The platform was sold to [[GameStop]] in May 2011.<ref name="GameStopAcquisition">{{cite web|url=http://phx.corporate-ir.net/phoenix.zhtml?c=130125&p=irol-newsArticle&ID=1544860 |title=GameStop Announces Acquisition of Spawn Labs and Agreement to Acquire Impulse, Inc. |publisher=GameStop|date=March 31, 2011 |access-date=May 2, 2011}}</ref><ref name="JoystiqAcquisition">{{cite web|url=http://www.joystiq.com/2011/03/31/gamestop-indulges-in-some-impulse-buying-no-seriously-it-bo/|title=GameStop indulges in some Impulse buying ... no seriously, it bought Impulse (and Spawn Labs)|first=Christopher|last=Grant|work=[[Joystiq]]|publisher=[[AOL]]|date=March 31, 2011|access-date=May 2, 2011|archive-url=https://web.archive.org/web/20150131154411/http://www.joystiq.com/2011/03/31/gamestop-indulges-in-some-impulse-buying-no-seriously-it-bo/|archive-date=January 31, 2015|url-status=dead|df=mdy-all}}</ref>
 
The period between 2004 and now saw the rise of many digital distribution services on PC, such as [[Amazon.com#Amazon Publishing|Amazon Digital Services]], [[Impulse (software)|Impulse]], [[GameTap]], [[GameStop]], [[Games for Windows – Live]], [[Origin (service)|Origin]], [[Battle.net]], [[Direct2Drive]], [[GOG.com]], [[GamersGate]] and several more. The offered properties and policies differ significantly between the digital distribution services: e.g. while most of the digital distributors don't allow reselling of bought games, ''[[Green Man Gaming]]'' allows this.<ref>{{Cite web|url=https://www.gamespot.com/articles/green-man-gaming-denies-it-sells-grey-market-game-/1100-6432325/|title=Green Man Gaming Denies It Sells "Grey Market" Game Keys|access-date=August 14, 2020}}</ref>
 
In 2004September 2003 [[Valve Corporation|Valve]] released the [[Steam (service)|Steam]] platform for Windows computers (later expanded to [[Mac OS]] and [[Linux]]) as a means to distribute Valve-developed video games. Steam has the speciality that customers don't buy games but instead get the right to use games, which might be revoked when a violation of the [[End-user license agreement]] is seen by Valve<ref name="ownsteamgames">{{cite web|url=http://www.rockpapershotgun.com/2012/02/01/thought-do-we-own-our-steam-games/|title=Thought: Do We Own Our Steam Games? |first=John |last=Walker |date=February 1, 2012|access-date=July 1, 2013 |publisher=[[Rock, Paper, Shotgun]]}}</ref> or when a customer doesn't accept changes in the End-user license agreement.<ref>{{cite web | url = http://www.netzwelt.de/news/93717-verbraucherzentrale-abmahnung-valve-steam.html | title = Verbraucherzentrale: Abmahnung für Valve und Steam | first = Annika |last=Demgen |language=de | work = [[netzwelt]] | date = September 17, 2012 | access-date = September 22, 2012}}</ref><ref>{{cite web|url=http://wegotthiscovered.com/gaming/valve-accept-steam-subscriber-agreement-disable-account |title=Valve: Accept New Steam Subscriber Agreement Or Disable Your Account|date=August 5, 2012 |first=Justin |last=Alderman |access-date=March 22, 2014 |publisher=wegotthiscovered.com}}</ref>{{Unreliable source?|date=September 2023|reason=WP:WEGOTTHISCOVERED|certain=y}} Steam began later to sell the right to play games from independent developers and major distributors and has since become the largest PC digital distributor. By 2011, Steam has approximately 50-70% of the market for downloadable PC games, with a userbase of about 40 million accounts.<ref>{{cite web|title=The Master of Online Mayhem |url=https://www.forbes.com/forbes/2011/0228/technology-gabe-newell-videogames-valve-online-mayhem.html/|work=[[Forbes]] |access-date=April 26, 2012 |date=February 28, 2011}}</ref><ref name="Gaming Bolt">{{cite web|title=40 Million Active Gamers on Steam Mark |url=http://gamingbolt.com/valve-releases-pr-steam-userbase-doubles-in-2011-big-picture-mode-coming-soon|publisher=Gaming Bolt |access-date=January 7, 2012 |date=January 6, 2012}}</ref><ref name="Graft">{{cite web|url=http://www.gamasutra.com/php-bin/news_index.php?story=26158 |title=Stardock Reveals Impulse, Steam Market Share Estimates |last=Graft |first=Kris|publisher=[[Gamasutra]] |access-date=November 21, 2009 |date=November 19, 2009}}</ref>
 
In 2008, the website ''[[gog.com]]'' (formerly called ''Good Old Games'') was started, specialized in the distribution of older, classical PC games. While all the other DD services allow various forms of DRM (or even have them embedded) ''gog.com'' has a strict [[Digital rights management|non-DRM]] policy.<ref name="arspreview">{{cite web |url=https://arstechnica.com/gaming/news/2008/09/first-look-gog-revives-classic-pc-games-for-download-age.ars |title=First look: GOG revives classic PC games for download age |access-date=December 27, 2012 |first=Frank|last=Caron |date=September 9, 2008 |publisher=Ars Technica |quote=''[...] [Good Old Games] focuses on bringing old, time-tested games into the downloadable era with low prices and no DRM.''}}</ref> [[Desura]] was launched in 2010. The service was notable for having a strong support of the [[Mod (gaming)|modding]] community and also has an [[Open-source software|open source]] client, called ''Desurium''.<ref>{{cite web | url = https://www.phoronix.com/scan.php?page=news_item&px=MTA0NjI | title = Desura Game Client Is Now Open-Source | first = Michael | last = Larabel | date = January 21, 2012 | access-date = January 21, 2012 | publisher = [[Phoronix]] }}</ref> [[Origin (service)|Origin]], a new version of the [[Electronic Arts]] online store, was released in 2011 in order to compete with Steam and other digital distribution platforms on the PC.<ref>{{cite web|url=http://investor.ea.com/common/download/download.cfm?companyid=ERTS&fileid=475188&filekey=6d4ea4b7-0389-4c68-964f-af21a86c5a7d&filename=E3_2011_IR_Breakfast_-_6-8_-_small_file_size.pdf |title=PDF E3 2011 Investor Presentation |access-date=April 26, 2012 |publisher=[[Electronic Arts]]}}</ref>
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== Implications ==
{{Original research|date=May 2022}}
The main advantages of digital distribution over the previously dominant [[Video game retailer|retail]] distribution of video games include significantly reduced production, deployment, and storage costs. Games purchased digitally are legally licenses and not sold, meaning consumers do not have legal ownership and cannot resell their games.<ref>{{Cite web |last=Thomas |first=Bill |date=October 2, 2019-10-02 |title=PC game ownership in the digital age: what do you do in a post-ownership age? |url=https://www.techradar.com/news/pc-game-ownership-in-the-digital-age-what-do-you-do-in-a-post-ownership-age |access-date=2022-05-May 10, 2022 |website=[[TechRadar]] |language=en}}</ref>
 
Compared to physically distributed games, digital games cannot be destroyed because they can be redownloaded from the distribution system. Services like Steam, [[Origin (service)|Origin]], and [[Xbox Live]] do not offer ways to sell used games once they are no longer desired. Steam offers a non-commercial family sharing options.<ref>{{cite web |date=May 13, 2015 |title=Steam family sharing |url=http://store.steampowered.com/promotion/familysharing |access-date=March 13, 2015 |publisher=steampowered.com}}</ref> This is also somewhat countered by frequent sales offered by these digital distributors, often allowing major savings by selling at prices below what a retailer is able to offer.
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==List of video game digital distribution systems==
 
===Console:===
*[[Microsoft Store (digital)|Microsoft Store]]
*[[Nintendo eShop]]
*[[PlayStation Store]]
 
===Mobile:===
*[[Amazon Appstore]]
*[[Apple App Store]]
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*[[Huawei AppGallery]]
*[[Samsung Galaxy Store]]
*[[TapTap]]<ref>{{Cite web |last=Cranmer |first=Brandon |date=2022-09-September 11, 2022 |title=How to Get Exclusive Android Games That Aren't on the Google Play Store |url=https://www.makeuseof.com/taptap-games-not-on-the-google-play-store/ |access-date=November 25, 2022-11-25 |website=MUO |language=en-US}}</ref>
 
===PC - Websites:===
*[[Big Fish Games]]
*[[Direct2Drive]]
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*[[Game Jolt]]
*[[GamersGate]]<ref name=":0" />
*[[GOG.com]]<ref name=":0" />
*[[Green Man Gaming]]<ref name=":0" />
*[[Itch.io]]<ref name=":0" />
*[[Metaboli]]
*[[Newgrounds]]
 
====DRM-free====
*[[GOG.com]]<ref name=":0" />
*[[Humble Store]]
*[[Itch.io]]<ref name=":0" />
*Zoom Platform<ref>{{cite web |title=ZOOM Platform - DRM-free Games. Retro re-releases and more! |url=https://www.zoom-platform.com/ |website=ZOOM Platform |language=en}}</ref>
 
PC - Clients:
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|[[GOG Galaxy|Gog Galaxy]]
|{{Flagicon|Poland}} [[CD Projekt|CD Projekt S.A.]]
|{{Yes}}
|
| > 7,000
|
|-
| [[Microsoft Store]]
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| {{Flagicon|United States}} [[Valve Corporation]]
| {{Yes}}
| < 70>100,500000
|-
| [[Ubisoft Connect]]
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*[[Sega Channel]] (July 31, 1998)
*[[Wii Shop Channel]] (January 30, 2019)<ref>{{Cite web|url=https://www.nintendo.com/whatsnew/detail/reminder-wii-shop-closes-january-30-2019/|title=Reminder: Wii Shop closes January 30, 2019 - Nintendo Official Site|website=www.nintendo.com|access-date=June 14, 2019|archive-date=December 28, 2021|archive-url=https://web.archive.org/web/20211228143940/https://www.nintendo.com/whatsnew/detail/reminder-wii-shop-closes-january-30-2019/|url-status=dead}}</ref>
*[[Xbox Games Store]] (October, 2019)
 
== See also ==