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Sony Is Pulling Digital Download Codes From Retailers
Sony has plans to pull digital download codes for the PS4 from retail outlets such as GameStop. This new policy comes at a difficult time for these outlets, as many are struggling to keep up with a changing video game industry that is quickly becoming more digital.
Sony has slowly begun to prepare its business model for the next generation of consoles, which many believe will arrive in 2020. Although details about the PlayStation 5 is scarce, various patents filed by the company suggest that the new console will finally offer backward compatibility, a feature already offered by Microsoft's console, the Xbox One. However, despite that feature being missing from the PS4, Sony's console still continues to outsell its main competitor, with the Xbox One selling less than half of the PS4's sales worldwide. Digital downloads will inevitably be a major factor in the future console's business model, so this could be a predictor for the future as well.
Retail outlets will no longer have access to digital download games for the PS4. A tweet from game deals watcher @wario64 shows a leaked memo outlining Sony's new policy. As of April 1, players will no longer be able to buy digital download codes for PS4 games at any physical retail outlets.
The Verge followed up with Sony who confirmed this new policy. A PlayStation spokesperson said:
“We can confirm that as of April 1, 2019, Sony Interactive Entertainment will no longer offer full games through SIE’s Global Digital at Retail program. This decision was made in order to continue to align key businesses globally. To support full games and premium editions, SIE will introduce increased denominations at select retailers. DLC, add-ons, virtual currency, and season passes will still be available.”
What's unclear, though, is how this will affect online stores who sell digital download codes of PS4 games. This would include more prominent retailers, such as Amazon and Best Buy. Sony's statement suggests this might apply to all digital download codes, which would force gamers to get digital games exclusively through the PlayStation Store. That would leave players who don't wish to upload their credit card data to the PlayStation Network out of luck unless they buy PlayStation credits through retailers, which is more of a hassle. However, it does make sense that Sony wants to keep its digital sales to itself, especially as the company currently faces weaker sales profits.
This is certainly not good news for companies that offer digital download codes for PS4 games, especially GameStop, which is already struggling. Although the company was in talks for a buyout, that didn't happen and it decided to refocus its efforts on reimagining its stores and their experiences instead. Considering that analysts believe that gaming will be 100 percent digital by 2022, these companies will become obsolete if they do not find new business models before the next generation of consoles release over the next few years. In the meantime, companies such as Sony will continue to do what they can to make their profits come first.
