IS EB DOOMED TO FOLLOW BLOCKBUSTER INTO
OBLIVION?
Let's do away with any kind of high falutin
intro and cut straight
to the chase - all of us who are capable of dressing ourselves are
aware that digital distribution is a reality that is rapidly
approaching.
Stores that specialise in software sales are
staring down the barrel of a redundancy gun. Somewhat obvious, I know -
albeit I have recently been wondering what these companies plan to do
once there is little to no place for them anymore.
Our fond
memories of outlets such as Sanity and Blockbuster Video are quickly
becoming only memories nowadays - as the digital space for music/movies
has evolved, these outlets have discovered that there is little place
for them anymore.
From Sanity's shift in focus from music to
DVD sales
to Blockbuster's innovative strategy of closing most of their stores,
these are just two companies who are desperately trying to paddle
against the current with little sucess. With this in mind, what lays
ahead for our pastime's most prominent retailer?
Whilst it may
be true that EB and the like still have time on their side for now,
within a few years they will likely be facing a similar fate.
True, given that EB makes the bulk of its income from second hand
sales, there will still be some wiggle room even after digital
distribution drops the "digital" part from its title (and simply
becomes "distribution" at some point) - but eventually it seems as
though retailers will have little relevance in the not too distant
future.
As a rather profitable company, EB (and its
parent
company Gamestop) currently enjoys a healthy business, but surely their
higher ups must have given some thought to his issue.
However,
the question I find myself struggling with is one of what can they
actually do at that point to generate an income? Developers and
publishers will have little use for retailers, given they can simply
release games directly themselves whilst doing away with manufacturing,
shipping and retailer share costs. Given that their entire business
model is predicated on the sale of a product, how does such an
organisation adapt when a physical product is no longer necessary?
This is where you guys come in - I myself
have
read nothing about the future business strategies of these companies,
and am looking for answers.
Unless EB has a massive ace up
their sleeve, I can't help but wonder if we will soon be seeing former
employees outside their old stores (since converted into a "risque"
clothing store for tweens) holding signs saying "will strip for food" -
and asking passers by if they would like the scratch protection
warranty on any services rendered (old habits are hard to break, eh?).
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