Digitisation: How it’s Changing the Landscape of Video Games

Advantages of Digitisation

Digitisation comes with a lot of advantages, which we go into below:

– Convenience and ease of access: If you wanted a game ten to fifteen years ago, you would have to visit a physical store, find a copy of the game, and buy it. There were several possible problems, ranging from damaged discs to the game simply being out of stock, as well as the time taken to track down and buy the game. It is also less convenient to store and transport these discs- this is an added cost to the retailer. In today’s digital era, digital games can be bought online by customers with just a few clicks. These platforms also hold a huge variety of games, far more than most physical stores can stock. Further, customers can download and install these games across multiple setups and devices, since they’re tied to an account.

– Personalization: Keeping track of what your customers are buying and playing from your online store is made considerably easier by digitisation. By understanding their preferences and interests, e-retailers can recommend games which are personalized to their customers’ interests.

– A continuously improving game experience: Developers and publishers can gain analytical data about how players engage and interact with their games and also use data tools like sentiment analysis. This helps them to continuously improve and fine-tune their products, ensuring their customers keep getting a better experience going forward.

– Lower costs for customers and retailers alike: E-retailers save a great deal of money by not having to invest in physical stores, cutting out the middlemen, and not having to worry about damaged merchandise, and these cost savings are transferred to the end user. As a result, customers often get great discounts and offers on platforms like Steam during holiday sales and promotions, and even free games on platforms like GoG and Epic Games.

Disadvantages of Digitisation:

It isn’t all positive however- like any industrial transition, digitisation has its costs. Let’s take a look at them:

– Games disappearing forever: If a game is very old, it might not have a digital version of it available. Once taken down from stores, it might disappear forever. An example of this is SimsRefinery- it was lost for decades until someone ran across a floppy disk of the game and made a digital copy of it. Only the existence of a physical copy made its rediscovery possible. This risk also applies to indie games- most of them exist only digitally and if these are removed from e-retail stores, it can lead to them disappearing.

– Data security and protection: As a result of digitisation, a customers’ personal and financial details are often if not always linked with their store accounts, which leaves them vulnerable to data breaches. Whether it is a company accidentally publishing customer details or malicious attacks by hackers, one’s details stored online are always vulnerable to theft or exposure. Companies need to continuously update and upgrade their data security measures to ensure their customer data is safe.

– Closed Platform monopolies: Something to be wary about is the rise of e-shop monopolies on closed platforms. Less competition results in increased prices and stagnant online shopping experiences. Digitisation increases the likelihood of consumers shopping at a platform’s exclusive online store, resulting in higher costs for consumers and publishers alike.

– Licensing concerns, accessibility, and ownership: Traditionally, when an individual buys a physical game, they assume they own that copy and have access to it forever. This works well if you go and purchase a physical disc for example, and gives you a sense of control and ownership. However, when you grab a digital version, you’re really only buying the licence to play it, and this could lead to you losing access to it if the game is removed from the store for some reason. In fact, several major publishers state in their terms of service that if a game isn’t available on their digital platform anymore, you won’t be able to download it again, even if you’d already paid for it.

– The demise of the preowned games market: Games can be expensive, whether they are physical or digital. Buying new copies of them can be hard for quite a few gamers. A way they circumvent this entry barrier to gaming is by buying used physical copies. Several industries such as cars, furniture, electronics, and the like have a thriving pre-owned market and video games are no different. Stores like GameStop have made an industry of reselling used games. However, as a result of digitisation, the preowned games market is heading for its demise as most digital distribution platforms prevent reselling. GameStop closed more than a thousand stores by the end of their fiscal year of 2020, thanks to reduced business and debt. Video games are harder to buy now for a large demographic, which creates a barrier to accessibility.