In last month’s issue of GameAxis Unwired, we ran a double feature story in both GAXU and L33T sides of the magazine about the onset of digital streaming and download services. Games, media, productivity, it would seem that everything is going digital. Since then, I’ve had quite a number of people telling me that we may be jumping the gun here, that retail sales and physical products are still here for the long run. Here are some of the arguments I most commonly hear:

They say: People still like to ‘own’ a physical box/book/DVD/etc. The act of holding the product in your hand somehow makes it more real.

I say: Hold your Hard Disks then, or your PS3, or Xbox 360, or Wii, or PSP or whichever medium your digital content is stored because in the end, it’s just a storage device. When you buy a physical game or movie on a DVD, it’s just a media disc that stores digital software. What’s the difference?

They say: It’s more permanent/robust.

I say: CDs and DVDs are more likely to be damaged than your HDD, and there are so many ways a book can be destroyed. Digital content can usually just be streamed and/or downloaded again with no extra cost to your initial purchase except for your time.

They say: It’s less restrictive.

I say: True, it is much easier to lend a friend a book or a DVD without worrying about the copyright police. People have been sharing recorded material from the TV and radio forever. And, there isn’t a need to worry about CODECs, compatibility and network setup. I have to agree, but what if your friend is across a continent? What if there was already set rules to govern the platform, like Xbox Live or Apple’s App Store?

Would one say it is easier to walk than to drive a car because of all the hassle, maintenance, cost and training there is to owning and operating said car? No. The efficiency of the network and the services far outweigh the prehistoric barter system of physical lending or borrowing.

Beyond Digital Stores

However, when I talk about the future of Digital Entertainment Services. I’m not talking about the latest game available via Steam, or the latest streaming movie on SingTel mio TV. Yes, they are part of the whole digital entertainment evolution. But, they are merely the current stage of evolution, not the future. Currently, we’re only using these services to fulfill the roles of traditional platforms. There is little different between going into your local GameScore to buy a copy of Left4Dead and to buy it from Steam. There is little difference to subscribing to pay-per-view cable to watch the latest Premier League match and to get it from a broadband streaming service. You’re merely replacing one platform for another. Even as the world begins to embrace these digital services, they are already out of date. This is how fast the evolution of the digital world is moving. And why I felt the need speak up about the points above before I moved into the main topic on hand.

Community and Social Networks are the Future

What am I talking about? I’m talking about social networking. You may not have noticed it, but social networks are forming the future of digital entertainment and the change has already begun to happen. Take a good look at every major digital service and what do you see? A community. From YouTube to Facebook, the revolution is not in the fact that there’s plenty of media opportunities from these sites, but how they are consumed by the public. While YouTube is part of the old guard, Facebook is the new kid on the block where everything is happening right. From simple apps to flash games and plugins developed specifically for the network, Facebook has become a proper full-blown platform for application and games development.

And if you think the big companies haven’t caught on, think again. Look at the most recent changes to Xbox Live and PlayStation Network and tell me what you see? New Xbox Experience and PlayStation Home – updates to create a networking platform which developers can tap on to deliver content for the community. On the Microsoft NXE front, you’ve got games like Kingdom for Keflings that makes use of your avatar. For the PS3, EA announced their own piece of real estate with the EA Sports Complex inside Sony’s PlayStation Home at this year’s CES.

There is a clear shift in the dynamics of digital content and the services that support it; and it is only the tip of the iceberg for digital entertainment that is made not for the individual, but for the community.

Zachary Chan
Editor, GameAxis