|Will games follow a similar path?|
Digital distribution of products is in the process of transforming the book publishing industry, as ebook sales continue their meteoric rise and authors discover they may not really need a publisher after all. Digital distribution now accounts for about 25% of EA's revenue, and it's growing rapidly.
The missing factor is just how much this may change game development in the future. THQ has already said they will try releasing a new title for a lower price, seeking to make up the lost profit by selling DLC. I expect this model to catch on for several reasons; it can lower the cost and time for developing titles, and lower the risk, too.
The trend is clear for all sorts of media: Digital distribution is the future. Companies that fail to make the shift fast enough risk being left behind.