Day 106

Day 106:

Why do we like to use old technology, even though it's vastly inferior to what we also have access to? OK, maybe this isn't all of us, but there is something very exciting to me about finding, looking at and using old technology. Specifically, media technology, like record players, cassette machines, VHS players and retro video games consoles. (I am going to focus more on video games, since it's more my area of knowledge, but these arguments are more widely applicable to the media industry).

In 2022, most forms of media are digital. You often listen to a song on YouTube or buy it digitally, rather than buying the CD or record. You digitally download a game, rather than going to the in-person store to buy it, or even buy a physical copy online from a retailer. Most media, even the classic stuff, is now available via subscription services, so you don't even need to buy the individual items that you really want. As a result, the last 20 years has seen many media distributors go bust, with only niche local media stores and a handful of huge chains surviving (and most of them deal in second hand stuff primarily). Even GAME, one of the largest UK video games retailers, had to be bailed out from bankruptcy less than a decade ago, and the changes in our shopping habits have been reflected in the stock they carry. 

At the front of the store, there will be some of the latest titles, available physically. Then, the side walls are lined with pre-owned games, usually from the last generation. But the rest of the store? Merchandise, peripherals, books, wallet top-up gift cards, phones and consoles (if you are lucky). These items will likely carry their highest mark-ups, since the retailer gets very little of the money generated by selling new copies of the games; most of it goes back to the people who made it. They also prefer to sell the pre-owned games, since they get to keep all of the revenue from those sales for themselves (this is why pre-owned games are the majority of what's on the shelves in terms of games). Of course, it's easier and practically free for a company like Sony to distribute their game digitally, whilst printing physical copies is so much more expensive and complicated.

However, many people still like having physical copies of games, and prefer to buy them over the digital version. If you lose access to your account, or your console dies, then you could lose your digital game, whilst having a physical copy to take care of brings far more peace of mind. By having the physical version, you can also create your own display of games on your shelf; a 'full' digital library could never feel quite the same as a full shelf. So, whilst huge publishers and developers would probably like to stop printing physical copies completely (and will probably try it in the near future), they would risk alienating a large portion of their fan base. Buying digital, especially when there isn't a sale on, is often a lot more expensive than waiting for the price to come down a bit at CeX, then getting it physically. If those physical copies don't exist, then those people can either buy digital, or not buy at all. Yes, developers don't make money from the sale of a pre-owned game, but they still earn revenue from any micro-transactions the player uses, as well as more name recognition for the game.

The industry's answer to this problem has been the subscription model, with services like 'Xbox Game Pass' being pushed hard at new players. By distributing the subscription revenue among the developers depending on which game was played the most, then the big developers get lots and lots of money, and smaller developers get their games seen by far more eyes.  For fans of physical media, this should be a worrying development. It's no suprise, then, that companies like 'Limited Run Games' and 'Super Rare Games' have popped up, which allow gamers to pay a premium for a limited print-run physical copy of small indie titles, which otherwise would never have made it to print.