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THQ Sees 'Tremendous Opportunity' in Cloud Gaming

Posted August 24, 2010 by James Brightman

Digital distribution is here and it's only going to get bigger. While it may not be the number one way people get their games today, that day will come and the games industry is preparing for it. Game Theory has launched a new mini-documentary on "The Future of Digital Distribution" in which several high profile publishers and developers weighed in on the subject. 

“I think the video game business was always moving towards a services business, and so I think that getting rid of the physical media was just a natural step,”  said Nolan Bushnell, founder, Atari. “The online distribution of games solves a massive problem and that is the whole idea of recalls, patches and updates.”

“Digital distribution is very much in the early days right now," added Graham Hopper, EVP and GM, Disney Interactive Studios. "I think we’re at a point where all the threads are in place, and we will soon get to the point where there will be a tipping point where a lot more people will be comfortable with it, you’ll see more types of content being made available digitally, and it’ll become a bigger and more important part of the business.”

Even though we're in the early days, as Hopper put it, the potential is huge, and cloud services like OnLive or Gaikai could be completely transformative. Publishers are warming up to the idea of cloud gaming, and THQ seems quite excited. “The concept of lowering the entry barrier to consumers to get into our games by not having to shell out for hardware is a tremendous potential opportunity,” said Brian Farrell, CEO, THQ.

Perhaps one of the greatest benefits of the digital revolution is that it'll foster more creativity. Game designers won't have to worry so much about costs. 

“It’s giving game creators the opportunity to create shorter-format games, yet the quality is really there," noted Susan Panico, Sr. Director, PlayStation Network. 

“The reason digital is exciting for game makers is that it allows us to get content out to gamers faster and more cheaply," said Ted Price, founder of Insomniac Games. "A direct link between the people playing and making games means that we can push content out based on what the gamer wants.” 

“Digital opens a lot of doors. You can do a $0.99 thing. Imagine trying to do that at retail? The price point is completely scalable,” added Chris Taylor, CEO, Gas Powered Games.

James Brightman has been covering the games industry since 2003 and has been an avid gamer ever since the days of Atari and Intellivision. He was previously the EIC of GameDaily Biz.