Some aren’t comfortable about gaming’s inevitable digital future, however Activision Blizzard’s Spencer Neumann spoke to the transition in the course of the firm’s Q3 2017 earnings name. Neumann mentioned that “shift to full game digital downloads” is “real,” and that it’s nice for sport corporations because it brings them nearer to their shoppers. After all, they solely must click on a button to redownload a sport at any given time.
Before speaking in regards to the enhance in digital gross sales, Activision Blizzard’s Spencer Neumann confused that retail remains to be a significant factor. “Retail is going to continue to be important for us on console for some time to come,” mentioned Neumann (transcription by way of Seeking Alpha). “That said, this consumer trend that we’re seeing and the shift to full game digital downloads, it’s real, it’s a strong tailwind for our business, and it’s a good thing. That digital connection, it brings us closer to our consumer and it creates better economics. It’s roughly $10 of direct profit improvement and then there’s also indirect savings and margin benefit and even some working capital benefits.”
Neumann then went on to speak about Destiny 2‘s unbelievable digital gross sales fee, which was at over 50%.
I consider we talked about final yr that our historic digital combine was about 20% to 25% for Call of Duty and extra within the 30% to 40% vary for Destiny and Overwatch on console. And traditionally, we’ve been seeing that digital combine enhance at about 5 factors a yr.
As you level out, with Destiny 2 digital at over 50% console sell-through up to now, we consider we’re seeing some acceleration in that digital shift. And whereas that’s consumer-led transfer, I’d be remiss if I don’t level out only for a second that our group put collectively some actually compelling digital premium packages and drove lots of credit score for creating packages that clearly resonated with Destiny‘s group and delivered lots of worth.
While it will displease some, it’s clear that customers have made a alternative in what route they’re taken with. It’ll be fascinating to see how the digital market continues to evolve as an rising quantity of gamers make the shift.[Source: Seeking Alpha]