In an effort to ramp up and transition into the phase of selling software directly to customers through direct download, Sony will initiate the “PS3 E-Distribution Initiative.” This venture is an attempt to mimic and provide similar services as those provided by Microsoft,s extremely successful Xbox Live program.
Xbox Live provides downloadable media content such as movie trailers, demos, screensavers, and upgrades in addition to a large library of games, videos, music files and other software available for purchase. To date, the Big M,s online service has totaled over 24 million downloads since opening its virtual doors to the public in 2004. Sony,s version of Xbox Live, for its user base of PS3 owners, hopes to cash in on this lucrative commerce.
John Hight, head of external production at Sony America, commented on the advantages of online software distribution to Gamasutra. "Certainly being able to sell globally on-line makes it easier to reach international and remote markets. On the business side, it also lowers our cost of sales and eliminates inventory risk. It should help curtail used game sales and piracy. This new form of distribution will lower the barriers of entry for new developers. We can try out new ideas in a low risk, quick feedback environment."
E-distribution not only benefits the publisher of software titles, but also aides third party developers in submitting new works that normally would not be considered for publication due to initial production costs. Hight said, "The E-Distribution Initiative (EDI) will provide an alternative publishing opportunity for the direct download of games and other content to the user…[developers can] create a high concept or, better yet, build a working prototype of their game. Then register on our developer website www.playstation.com/beyond."
Game developers, who submit ideas for acceptance by the PS3 E-Distribution Initiative, will enter into a business partnership with Sony, Hight explained. "The EDI will be managed by Sony Computer Entertainment’s development and studio organizations in North America, Europe, Japan and Asia. Partnerships resulting from EDI will allow the developers’ downloadable games to be published for individual purchase or subscription over SCE’s direct distribution methods.”
The advantages of e-distribution will save game publishers an enormous amount of money by cutting out overhead costs like packaging, as well as reducing the cost of marketing, research and inventory stocking. In addition, small developers will have the chance to submit ideas directly to Sony, while consumers will realize a significant discount on titles by purchasing them via e-distribution.
