GameFly May Be Acquiring Direct2Drive

By Kevin Parrish
published

Mail-in game rental service GameFly is reportedly entering the digital distribution sector by purchasing IGN's Direct2Drive.

MCV claims that IGN Entertainment Group, which recently purchased UGO and popular gaming site 1UP, is currently in the process of selling Steam competitor Direct2Drive to mail-in game rental service GameFly. The deal is "almost complete," and an official announcement is expected to be released sometime next week.

Similar to Netflix before it offered streaming media, GameFly is a game-by-mail rental subscription service that deals exclusively with physical games for the three major consoles and the handheld game consoles. GameFly typically sends the requested game via snail mail in a re-mailable, pre-paid envelope. Subscribers can hang on to the game for any length of time as long as the subscription is kept active.

But the purchase of Direct2Drive means that GameFly is looking to gain extra revenue by incorporating a digital distribution platform for the PC and Mac. It also puts it in a position to compete with Valve Software's Steam platform which is currently at the forefront of the gaming industry's digital distribution sector. Even more, GameFly will gain access to Direct2Drive's just-launched digital rental service that allows customers to rent select PC games – a whopping six total including the original F.E.A.R., Divinity 2 and Tomb Raider: Underworld.

Earlier this year GameStop plowed head-on into the digital distribution sector by purchasing Impulse from Stardock. A direct competitor to Valve's popular Steam service (which is embedded in many PC games GameStop offers under its roof), Impulse sells digital versions of PC games while also offering socialization aspects like chatting Achievements, friends lists, matchmaking and more.

GameStop also purchased Spawn Labs in the same time frame, a company that focuses on streaming technology. The popular retailer will essentially incorporate Spawn Labs' technology into the upcoming digital distribution platform so that it can offer streaming PC games similar to OnLive. That said, both acquisitions will put it in a position to compete with Steam and OnLive while also offering console games at a retail brick-and-mortar level. The only avenue its has yet to conquer is GameFly's current territory, mail-in rentals.

OnLive presently doesn't offer a "download" service even though it's considered both as a rental and digital distribution platform. Gamers typically have four options: a 3-day rental, a 5-day rental, or outright purchasing the game aka "Full Access." The fourth option allows OnLive customers to pay one monthly subscription fee for an all-you-can-eat gaming buffet. The drawback is that multiplayer games are locked inside OnLive's network, and if the service ever shuts its doors, all Full Access purchases are gone for good.

Standard retailers and digital distributors are seemingly scrambling to figure out where the digital/physical retail space is heading as consumer tastes shift to social experiences, lower prices, and lighter loads on the desktop/notebook/mobile device. With GameFly moving into the digital distribution space, GameStop moving into the digital and on-demand space, Steam investigating the mobile space, and Nintendo gearing up to launch a new console, 2011 and 2012 looks to bring a huge wave of change in how gamers consume their favorite titles.

All seemingly inspired by Apple's iPhone and its cheap-but-tasty bite-sized gaming.

Kevin Parrish
11 Comments Comment from the forums
  • memadmax
    Woot! Woot! Do we get a hot chick like in the picture too?
    Reply
  • NuclearShadow
    It's clear that other services have some trouble competing with Steam
    and sadly they don't take much effort to try to take consumers by price wars. Even Steam's sales tend to be slightly better than D2D as a example when the sale concerns the same game. So what does this have to do with the possible sale of D2D? Simple what is the typical action done by the buyer after a buyout of a service? Raise prices of course. In this case raises the price beyond the normal is unlikely but this is likely to make any sales, pre-orders, and other forms of marketing to attract customers to be degraded. This is the most likely result from this sale of D2D.
    Reply
  • TheDuke
    Got to do something as digital download progresses and they won't be able to get a cut out of the growing networks the console manufacturers have.
    Reply
  • JDFan
    Just makes you wonder how they are going to deal with the serials and limited installs on many games (ie. Securom etc.)and how they will deal with keeping those that rent the game from continuing to use it and what type of reaction game makers will have to the offering of rentals when they have always done everything they could to keep games from being resold or traded in order to keep retail prices high - so I can see many distributors holding out on providing the games for them to offer.
    Reply
  • Marthian
    one less place to get good deals... dang...
    Reply
  • JOSHSKORN
    The only reason I buy from Steam is because it's so easy to do and the game sets itself up. With D2D, I have to download it, unpack it (mind you, it works better with 7zip instead of WinRAR), install it and then set it up to my liking.
    Reply
  • proxy711
    I was wondering how well D2D was doing after the last game i bought from them just redirected me to steam to download. I think its safe to say not very well. Doesn't surprise me it was sold.

    Onlive is a joke its not competing with steam or D2D, nor will until everyone around the world has crazy fast fiber internet. Until then its just a crappy overpriced rental/streaming service that produces choppy and laggy service.
    Reply
  • fir_ser
    What is the pricing of each of the four options.
    Reply
  • maverick knight
    Good, Im considering renewing my subscription to GF.
    Reply
  • pocketdrummer
    Yeah, I'll never use D2D again. I tried it with F.E.A.R. when it came out, but the update process was so borked I could never play online. I ended up just using F.E.A.R. Combat instead even though I actually BOUGHT THE GAME!

    Never again. Steam has never given me any problems with any of my purchases.
    Reply