Stardock CEO Reveals the Truth of Digital Distribution and the Industry

Nicholas "bapenguin" Puleo October 2nd, 2009 at 8:58 AM    


 

In one of the most brutal and honest interviews I've seen in a long time, Stardock CEO Brad Wardell lays out the state of PC gaming on the table.  You can tell the man has a chip on his shoulder, and he's not afraid to tell the world about digital distribution, Microsoft's shortcomings, and the fact that company's flat out lie about their sales.

With digital distribution becoming more popular, it seems that most have been clamoring that "retail is dead" - but that's simply not the case.  There's a reason we haven't seen numbers from Steam, Direct2Drive, Impulse and other digital platforms - they simply aren't as impressive.

Brad Wardell: It's a lot. A lot of people keep predicting digital distribution is going to kill off retail, and that's not going to happen any time soon. Retail sales are still gigantic. Demigod has sold more copies at Walmart than anywhere else. Even though it's on Impulse--right now we have a sale this week, you can get Demigod for $20. But I guarantee you that Walmart sold more copies this week than we did, even though we sold thousands and thousands of copies this week.

But what about retail sales, they seem to be dropping off a bit, no?  Certainly digital distribution is picking up in its place.  Perhaps, or perhaps the numbers we've been hearing all along weren't 100% truthful.

Brad Wardell: That's because everybody lies about their numbers. It's really painful. I mean, on Galactic Civlizations II, we made an OEM deal where ATI or Nivida--I don't remember now--where it was like 10 cents per copy. Well on paper, we sold six billion copies of GalCiv. We don't use that, but you can bet your behind that if you opened up PC Gamer, you'd read "such and such a game sold nine million copies." No. No it didn't. Users want to know how many copies, either digitally or at retail, at full-price, at $40 or $50. You can never get those numbers.

So while every few years people seem to predict the "death" of PC gaming, it never seems to go away.  That's not to say there isn't room for improvement.  Like consoles, PC gaming needs a dominate force to steer it properly.  Or does it?   When Microsoft had the oppurtunity to do something great with PC gaming, they all but blew it with Games for Windows Live.

Brad Wardell: I don't know. I started out as a big Games for Windows Live advocate. I intended for Elemental to be on Games for Windows Live, but then as we got closer, the Xbox group took it over more and more. And they have things where, oh, if you want to use Games for Windows Live to update your game, you have to go through [their] certification. And if you do it more than X number of times, you have to pay money. It's like, "My friends, you can't do that on the PC." 

Now for a bit of editorializing on my own part.  There are those that say Valve are the ones that can save PC gaming, that they already have with Steam.  The fact remains that right now one third of the entire Steam population playing ALL games is matched by one game on the Xbox, Halo 3.

Perhaps it's time that all the digital platforms, Steam, Impulse, Direct2Drive, GoG, and others get together and create a unified PC gaming community.  Only then will they compete with consoles, and only then, will we possibly see digital distribution get the respect it deserves.

Source: Link

 Tags: pc politics impulse sins of a solar empire stardock


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7 Total Reader Comments

ruumis at 05:59 AM on 10.2.2009
Wardell's on to something here. Back in March of this year we did an episode talking about the "digital bargain bin," specifically Steam's deep discounted weekend sales and how they dramatically effect the movement of product.

http://evavhost.com/podcast/2009/03/shotgun-2/
 
bapenguin at 06:21 AM on 10.2.2009
Indeed those sales to affect it, but according to him, it's chump change compared to how many units a B&M retail outlet can move.
 
roland at 06:25 AM on 10.2.2009
Those of us who are in the "hardcorz" likely end up having a skewed view because we are early adopters and keep track of these things. I buy a lot of independent games through Steam and other digital distribution channels, but many of the other gamers I know don't. It would never even occur to my lady or my kid to buy a game online. You go to a store to get games.

Oh, and thanks for posting this! I read the whole interview, and Wardell's interview on Elemental. He's probably one of my favorite personalities in the gaming community.
 
txshurricane at 06:35 AM on 10.2.2009
Wow, very interesting. Renders a lot of previous information kinda moot. Good snippets!
 
Shayagor at 10:31 AM on 10.2.2009
Quite a good read. Thanks for posting. Checking out the source.
 
Jackel at 11:04 AM on 10.2.2009
Gotta Disagree with your opinion at the end. Having a unified PC platform is not what we want.

The best part about the PC platform is competition. Steam has the weekend sales to compete against Impulse / Direct2Drive. Merging those together would NOT be for the better.

As much as some folks want east (console), the best part about PC gaming is the freedom to choose. If xbox live goes down, can you still play online multiplayer? No. But on the PC, if steam goes down, I can still play a ton of other games online with my friends.
 
Anonymous at 07:44 PM on 10.5.2009
Perhaps digital distribution doesn't deserve the respect that some think it does.

Speaking as a fan of Steam, I can still see why consoles are becoming more and more popular. I myself have been exposed to many excellent games thanks to the ability to borrow a physical copy from a friend. This is *real* social gaming... borrow, lend, exchange, and share gaming experiences.

As long as digital distribution remains encumbered by DRM, and PC gaming remains a (relatively) solitary experience, we can't expect PC gaming culture to thrive like console gaming culture has.
 


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