For anyone it is a secret that entrepreneurs are always looking for ways to maximize their profits and electronic entertainment is no exception; Video games are a business and that has implications in the way they are produced and marketed. This explains why in recent years this industry has driven business models such as digital distribution, which saves costs generated by the physical manufacture of games, as well as placement in stores.

A TREND THAT WILL NOT BRAKE

In addition, consumers have found the virtues of digital games and we started accepting this format, perhaps for the best prices, perhaps because of the immediacy of the product or maybe because of the ease of managing our library from the interface.

It is likely that over the years this trend will intensify and reach a point where the heart of the industry is the digital distribution of games and not the physical. According to well-known consultants such as PwC (PriceWaterhouseCoopers), console-based game sales will drop from $ 21 billion in 2015 to $ 18 billion in 2020, while digital sales will rise 57 percent (which will mean up to $ 13 billion ) In 2020; As you can see, the change is very noticeable and there is no reason to think that this trend will stop.

THE INTERROGANT IS NOT IF THE DIGITAL FORMAT WILL PREDOMINATE, BUT WHEN IT WILL HAPPEN TO LEAVE THE PHYSICAL FORMAT IN STORES

In the case of the PC the matter is even more pronounced. According to Digital Future Consulting & Intelligence, which provides research reports on entertainment markets, in 2013 only 10% of games sales were made physically and in 2014 almost 92% of computer game sales were digital; An outstanding domain of that format. It is important to note that the biggest advance of the digital in PC has been boosted by the existence of functional platforms such as Steam, which offer easy access, a wide catalog and sometimes better prices.

This has caused the scheme of buying and selling video games to change: the consumer has stopped needing an intermediary, now can buy the titles directly from the developer and stores have begun to see reduced their distribution capacity ... But then, this Does it mean that video game retailers or retailers are going to disappear? The quick answer would be: it depends on the ability of the stores to evolve.

Mrtyn Gibbs has tried to keep his stores relevant, but says it has not been easy

MRTYN GIBBS HAS TREATED TO MAINTAIN RELEVANT STORES, BUT IT SAYS THAT IT HAS NOT BEEN EASY

According to the CEO of British stores GAME, Martyn Gibbs, "The [video game] industry is in constant evolution, that is the nature of any technology-based industry." Just as the way the games are sold has evolved, so too should the way retailers understand the market and offer their products. It is not just to begin selling the codes with which the digital download or access cards to online gaming services such as Xbox LIVE or PlayStation Plus is to be transformed into a proposal that remains current and attractive to the consumer.

In response to the advance of digital sales, stores have expanded their business proposition; Currently, in addition to selling video games, they market any kind of products related to them. In the branches of several retail has increased the presence of accessories related to the main franchises of the industry, from T-shirts of Halo to books of The Legend of Zelda, through the classic cases and protectors for controls and consoles.

Retailers have suffered the advance of the digital format, but have also understood that gamers are willing to consume material related to the industry. For example, when asked the manager of a video game store in Mexico City about the progress of these products, he commented that 2 years ago, less than half of that branch was made up of collectibles, while today video games are Which have been displaced in space. In addition, he stressed that in seasons where there are no strong launches, it is these collectibles and paraphernalia that save sales.

Another profitable activity for stores and that will remain at least in the short term, is the sale of second-hand games. The distributors' efforts to keep this activity from spreading (with codes to play online, DLC and final editions that reduce the value of the original games) have not been successful. Already in 2009 the British store GAME affirmed that 18% of its income was for games of second hand and at present, a significant percentage of income of this type of stores are used products.

A study conducted in 2016 by Nominalia - a company specializing in the direct registration of Internet domain names - states that 44% of Spaniards buy used products and the most requested are video games, which demonstrates the high acceptance of this type of Sales between players. Also, the manager of the Mexican store previously mentioned said second-hand games are an essential income for the establishment, especially in areas of the city with fewer resources, where they are the center of the business.
It can be said that, in the future, physical titles will cease to be the main object of video game stores and will become just one more product in a broad spectrum of merchandise offered. With such successful experiences as amiibo or the sale of gamer clothes, the industry has shown that the business goes far beyond consoles and that there is a community desiring all kinds of goods.

THE SOLUTION IS NOT SO SIMPLE

However, to say that the future of video games retail is to offer toys and clothing, it is also far from a definitive form of solution. To begin with, Toys-to-life experiences such as Disney Infinity or Skylanders (which have seen their sales significantly reduced), have shown that it is not just about offering toys, you have to be willing to evolve into concepts and, in general, this does not depend Of the retailer.

Adding ThinkGeek products to your catalog gave a great added value to what GameStop offers

ADDING THINKGEEK'S PRODUCTS TO YOUR CATALOG GIVEN IT A GREAT VALUE ADDED TO WHAT GAMESTOP OFFERS

Sure, there are cases like GameStop that has gone from selling to manufacturing and publishing their own products, in 2015 they acquired the merchandise specialist ThinkGeek and in early 2016 launched their indie game developer, GameTrust. This solution has brought them returns, but is not easily replicable by other stores, as they do not have the financial capacity or influence of the US retail.

It is clear that the solution should not be limited to expanding the offer of collectibles and products on video games, it is not just transforming into a bigger store that sells more things, that already exists. There are toy stores and supermarkets that offer these kinds of products, so videogame retailers would be forced to go a step further to provide an experience that transcends the sale and really justifies its existence.

On this subject it is worth reviewing practices developed in other industries that account for similar situations, a key example would be Apple. According to an article by Danny Wadeson, published by VICE in April 2015, the US multinational understood the importance of providing a space for consumers to explain the new technologies that were developed and, thus, have a rationale for not being Could offer digitally with the same success.

For those who do not know this type of experience, the Apple user can approach an official store with the intention of asking technical questions or knowing the new products without needing to pay additional values ​​and with really effective solutions. Likewise, these premises have adopted concepts in terms of design and service that make the experience of visiting them more pleasant.

It is not difficult to imagine similar actions in the field of video games, with the differences of the environment. Present a dynamic space where the different expressions of the gamer community are displayed; A place where the player can meet his peers to hang out in a familiar environment; An area where multiplayer matches or eSport competitions are held; A point capable of providing answers to technical or thematic questions about video games before a purchase (I have never been to a store where the seller really can offer useful advice).

Maybe you're thinking "but that's already done." Yes, it is indeed being done, there are gamer bars, there are sands of competition, but none of these answers manages to articulate the whole concept, they are isolated experiences; One of the cases that would approach more is the one of the British store GAME. According to Christoper Dring of digital media Gameindustry.biz, that retailer has managed to identify 2 strengths to continue existing: its widespread physical presence and a large number of customers with reward cards.

Taking such strengths as a platform, since 2016 GAME has ventured to create "experience centers", places where gamers can play and buy products. It is somewhat similar to sand that has emerged in various parts of the world, where attendees can try games or participate in local tournaments; But unlike these, the sale of video games and collectibles is maintained.

Perhaps the future of video game stores is to be meeting centers for gamers

SOMETIMES THE FUTURE OF THE VIDEO GAME STORES IS TO BE MEETING CENTERS FOR THE GAMERS

From this perspective, if the video game stores do not want to disappear before the advance of the digital format, they should turn the points of sale into meeting places. This concept is not strange if you observe practices of retailers specialized in other industries, such as bookstores, many of which have been transformed into places that provide a whole experience and not just a purchase. Today there are book stores where you can buy a text and then sit in a piece of furniture, order a coffee and read it right there; Even, collective readings and other kinds of events are done.

I can say that the scenario is not negative; Of course there will be difficulties, including closure of stores, but we are facing the opportunity to take a step forward. It is necessary that spaces such as videogame retailing continue to exist, but beyond that, it is necessary that they improve, that they become a true place of physical encounter for gamers, a place where everything that represents this culture and users Can feel comfortable and identified.

It is not only to re-charge the consumer to play, as was done in the arcades, is to offer a meeting space in which the players can live their passion; Only to that extent, video game stores will have a justified existence, despite the advance of the digital format. The compelling question is whether retailers are willing to take the plunge. What do you think about it? How do you imagine those meeting places? Do you think it's possible?