Is Steam Killing the Retail Biz?

Paul Lilly

It seems like so long ago that we were skeptical Steam could get us to stop bitching about DRM and provide a viable distribution system that both publishers and game players could live with. Well, we're not finished groaning about DRM, but there's no denying Steam does what it's supposed to, and does it well. Perhaps too well.

According to U.K.'s weekly gaming rag MCV, some retailers are threatening to ban games that integrate the Steam service on fears that Steam has a monopoly on the download market.

"If we have a digital service, then I don't want to start selling a rival in-store," said the head of one of U.K.'s biggest gamers retailers. "Publishers are creating a monster -- we are telling suppliers to stop using Steam in their games."

A purportedly big-name digital service provider backed up those remarks, saying "At the moment the big digital distributors need to stock games with Steam. But the power resides with brick and mortar retailers, they can refuse to stock these titles. Publishers are hesitant, but retail must put pressure on them."

Should retailers be concerned that selling games with Steam baked in only pushes users towards buying games through Valve online, or is this just another 'wambulance' call?

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