Always Online DRM

Discussion in 'Politics & Ethics of Technology' started by Silent_Buddha, Feb 18, 2010.

  1. Bouncing Zabaglione Bros.

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    Earlier in the year in the UK, HMV, the famous music and video retail chain collapsed. They had tweaked and messed with their business model for years, outlasting competitiors like Virgin Megastore, Tower Records, Our Price, even Woolworths (who sold more chart records than anyone else in their heyday).

    Ultimately, HMV didn't react to changing markets, and with (IIRC) about £140 million in debts, the media publishers and distributers refused any further credit. HMV went insolvent and went under.

    There was panic at the media cartels. Suddenly, there were no more chains on the high street selling music or movies. Sure, you could get the newest chart stuff at the supermarkets, but they discount heavily, and drive a hard bargain on margins. They don't sell any significant back catalogue. There's the likes of Amazon online, but they too are heavily margin sensitive, and drive a hard bargain with the suppliers. There are not on the high street for impulse buys and actually seeing the product.

    In the end, suppliers had to drop three quarters of their debt, in order to sell on half the profit making stores to a new management company that had previously bought the Canadian HMV chain and turned it around when the UK parent company gave up on it.

    Now apply that same situation to the likes of Gamestop. The profit from their used games business is likely the difference between keeping them alive or driving them under. What are the games publishers going to do when no one is selling the games on the high street? Are they going to hope they can make all that money back from online sales, even from the kids who don't have credit cards?
     
  2. Davros

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    Do you know what happens to the stock they dont want on the shelves (dvd'd cd's games ect)
    well the get put on pallets and sent to a warehouse (where i occasionally work) There they sit for a few days until being shipped to a prison where they are destroyed (but not on Friday cos prisoners dont work on Friday)

    Now those that follow the teachings of the Gaming Gods are compelled by moral and religious duty to rescue those large slices of gaming goodness form their fate.
     
  3. pcchen

    pcchen Moderator
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    It's easy though. All they need to do is to sell point cards at supermarkets and other retail stores. No need for credit cards. Apple do that for iTMS too.
     
  4. Silent_Buddha

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    Yup, and at least in the US you can now basically buy Steam Digital Only games in 7-Eleven. Steam cards are now available for sale in 7-Eleven.

    Regards,
    SB
     
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