Jagex: Physical games retail gone within 10 years

February 22nd, 2012, 00:51 Posted By: wraggster

Jagex CEO Mark Gerhard believes that the decline and eventual closure of high-street retailer The Game Group is now inevitable.
Speaking as part of an expert panel at the BAFTA Question Time event, sponsored by GamesIndustry.biz, Gerhard stated that the efficiency with which the internet serves the modern consumer's needs - easy access to a wide range of content at lower prices - has started a process that will eventually eradicate physical retail for games.
"I think, 10 years out from now, we'll be talking about [physical] retail nostalgically, as a museum piece," he said. "I don't think there's much there that would give it a second life."
Physical retail, Gerhard explained, is part of a system that takes "huge chunks of margin" from developers, facilitating the decline of the independent development sector.
"That all erodes the economics for developers being able to make money," he continued. "They take a chunk - say 20 or 30 per cent - the publishers take a bit, and after inflation it's no wonder that the independent games industry isn't alive and vibrant, because they're not making any money."
I think, 10 years out from now, we'll be talking about [physical] retail nostalgically, as a museum piece

Mark Gerhard, Jagex

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