by ppcStudios » Jul 2, 2004 @ 1:49pm
Here's the problem as I see it (in no particular thought pattern):
1) Handango, PocketGear and Pocketland.de are the three biggest distribution points for mobile products (at least Pocket PC based applications). Handango is the largest by far, with the other two a distant second and third. Handango and PocketGear obviously recognize this, and they know they can do what they like - the loss of a handful of development studios is more than made up for by the higher profit margin.
2) The mobile market is moving towards the desktop market model - a larger share for the publishers and distributors, and a smaller share for the developer. This will result in higher prices for quality titles from the development studios that remain, and a thinning of the marketplace as the hobbyist developer moves on.
3) The 'indie' supported distribution point has been tried in the desktop market and failed miserably. I don't forsee it making an impact in the mobile market either unless a majority of the major players all participate, and the distribution site is operated by people who know how generate traffic and sales, and have a well established track record in the industry.
4) Customers go to Handango because they are a trusted site. They generate alot of traffic because of this as well as their industry affiliations. There are alot of small distribution sites out there that simply can't compete with that, and therefore generate very few sales. Without proper financial backing, and a staff that knows whats going on, a small distribution site will always be just that - small and unprofitable.
5) Online distribution centers require a substantial investment - hardware, software, bandwidth, credit card services (not everyone wants to use paypal), support, advertising, office space, accounting & bookkeeping... the list goes on and on. It's a 24/7/365 business, and if you think otherwise you are sadly misinformed. This isn't something a couple of hobbyists are going to slap together over the weekend and make work seamlessly.
6) Am I sick of the rate increases? Hell yeah. Have I thought about creating my own distribution point? Yeah, and I know alot of people in the industry (and outside the industry) that would be interested in doing the same. The real question is could I make it a profitable venture? Probably, but it would be an expensive proposition that probably wouldn't turn a profit for years. I could probably round up the investors needed to create distribution points in both the US and Europe.
Just some random thoughts on the subject... maybe I'll make some calls today and toss some ideas around...
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