It seems like the CEO of GameStop is quite fervent in his belief that disc-based games will be around for a long time.
“Disc-based games will be around forever,” said GameStop CEO Paul Raines in a report by Fortune.
“The market has seen physical music sales down 50% from its peak and physical movie sales down 60% from its peak, but even in a doomsday scenario, disc-based games will be around for a long time. I see a complimentary business where we sell discs plus download like the current console mode. Virtual reality games will also likely follow this model.”
It’s worth mentioning that despite Raines’ position on traditional media, GameStop is rapidly embracing the digital future, with digital sales making up $948 million of their $9.3 billion in revenue in 2014. Coming from this, the retailer owned an estimated 42% share of the downloadable games market, in 2014.
Analysts are now saying $11.1 billion of the global estimated $82.5 billion revenue for 2015 is from digital sales. Outspoken Wedbush Securities industry analyst Michael Pachter is also parroting what Raines is saying, albeit with a surprisingly realistic outlook:
“I think the console death will take decades,” says Pachter. “That means that GameStop has at least another 20 years to sell DVDs. I think that the decline in physical game sales hurts GameStop the least, as Amazon and Best Buy customers are far more inclined to buy online than GameStop customers, due to the latter’s predominant position in the used games business.”
What do you guys think? Will we still be using physical media in twenty years? Fifty years? Sound off in the comments below!
Editor’s Note: Header/Thumbnail image is from Egoraptor’s Awesome Reach (Video NSFW)