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A Sony web site that will direct sell movies, games and applications for the PS3 and PS2 is set to hurt retailers around the world.
The site which was confirmed today by the Vice President of Technology for Sony Computer Entertainment Europe, Paul Holman will take business away from retailers by allowing consumers to order directly from the site pre packaged content or alternatively download the content directly to a PS3 or PS2.
The move will see Sony save at least 30% of the retail value, of the software being sold, by eliminating both distributor and retail margins. It will also net Sony millions in additional revenue. Currently global console sales are worth an estimated $1.7 billion dollars of which Sony has 48%. If 20% of this market move to online purchases this could represent savings to Sony of more than $150 Million and up to $70 million in movie sales.
Another key benefit for Sony is that they can market the site titles directly to users who have registered for a free registration incentive or have logged onto a Sony web site that carries a link to the content site.
Talking in Sydney Holman said “The site will have movie trailers, 1080p Blue Ray movies and game clips as well as full movie and game titles for direct purchase by a consumer. We believe that this will appeal to PS3 users while also allowing new developers to market their developments to the PS3 user.”
When asked whether a retailer would benefit from the site Sony Computer Entertainment was very no committal. Announcing the site Holman demonstrated a New Zealand developed racing game that will only be sold online”
“A big benefit of the site is that we can make available games that can be sold around the world. Irish Gaelic Football is a typical example of a local game that while selling well in Ireland is also available to Irish people around the world without distributors and retailers having to take the risk of carrying the stock”.
