DRM News

Every year, the PC Gaming Alliance (a non-profit group who actively promote PC gaming) releases an annual report. The full report is only available to those with a membership (anyone have a spare $5,000???), but the condensed version can be found on their site here.

Some highlights from it :

Among the key findings is that PC gaming software revenue was a $13.1 billion industry in 2009, up 3% from 2008.

Not really a big surprise, unless you only pay attention to retailer reports. Why would those be inaccurate? This might explain it a bit :

However, the biggest downturn was in retail boxed sales of PC games, which now accounts for less than 20% of total revenue.  Nevertheless, the downturn in established markets was largely offset by the growth of digital distribution.

So, all of those screeching ‘The sky is falling!’ Chicken Little types with their “Is PC gaming dying?” questions are flat out wrong.

“In our surveys of PC gamers in North America and Europe we found that over 70% indicate they have bought a full game online.  Furthermore, over 50% indicate that they have bought a virtual item,” said DFC Analyst David Cole.  “This is very positive because, when done successfully, companies in Asia have found the digital distribution model to be significantly more profitable than the traditional retail boxed goods business.”

The truth is, as things go more digital in terms of sales, the power of retailers to force set pricing models dwindles even further. Why are prices currently set where they are? Stores set them, then tell publishers that if they undercut those prices online, they’ll pull the product from their shelves. As they account for fewer sales, those threats become increasingly empty.

Anyway, the main point? PC gaming is doing just fine.