The gaming industry is truly changing, and we are in the midst of a major transformation. Revenues from last quarter from digital distribution (the combination of digital purchases, subscriptions, downloadable content, social network and mobile games) surpassed those of physical distributors for the first time, to the tune of $1.74bn vs. $1.44bn. And this is only the tip of the iceberg. Digital distribution, serving information goods, all have less variable costs and thus higher margins.
Gaming might be the second canary in the brick & mortar coal mine -- after music. Soon we will see digital distribution overtaking retail in many other areas as well: movies, books, and online shopping in general seem ripe to have their digital distributions overtake the analog counterparts.
From: http://www.engadget.com/2011/10/06/digital-video-game-distribution-finds-brick-and-mortar-camping/
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