David Reeves, Capcom’s European COO, has offered his thoughts on today’s ever-growing digital market, establishing some interesting predictions about how long the transition from retail to digital dominance will take.
He told MCV: “When you’re working for a company like Capcom and you’re talking to the biggest, smartest retailers around, there can be no doubt that they’ll be a big part of this business for at least ten to 15 years.”
Can we really count on boxed game sales being kept in the running for another decade and a half? “You can get such reach and coverage by going with both retail and digital,” Reeves continued, “that you cannot afford, in our position, to give up with physical distribution. I think you can double your revenue through an integrated digital/physical strategy, such as the prologue/epilogue model we employed for Dead Rising 2.”
Reeves is still confident in digital’s future, too: “I’ve got a feeling digital distribution will actually come up very, very quickly, as it’s doing, and then start to plateau.
“One factor in the transition between physical and digital is profitability. If you’re not producing a disc, you’re not shipping the disc, you don’t have a 35 per cent retail margin and you don’t have to worry about returns, then profitability is way in excess of anything you can do at retail.
“So in the cold light of day, from a publisher point of view, it is very profitable.”
Following his comments on Dead Rising 2 is the announcement of a third piece of DLC, making it a prime example of what Reeve means.