We see how things are changing in terms of digital distribution. With sales from PC gaming hubs like Steam, Direct 2 Drive and Impulse growing with each passing year, there is obviously a demand from people who want their games, but don’t care to have a physical media. I, personally, still enjoy having that sense of ownership of an item and keeping a visual library of my goods. But I am of the older generation of gamers with cane at the ready for any young whippersnappers who dare trudge on my lawn. I think as time goes on though, more people, myself included, grow to accept the, “I trade you my ones and zeroes for your ones and zeroes” attitude that goes along with saving space in your domicile and being more environmentally friendly.

When the biggest name in the retail video game market, GameStop, sees the writing on the wall and forges plans to sell DLC in stores, you have to start scratching your head. But I have to wonder if retail will really ever die. I can see maybe retail as we know it change, but you will still have physical product to sell in terms of hardware. People will still want to demo the latest and greatest games on the current-gen consoles. How will I know which plastic instrument game to buy if I can’t try it out first? But is that what direction we take? Does GameStop lose out to someone like Best Buy who can simply act as the middle man for gaming hardware, then leaving the software to be downloaded from the consumer’s home?

I can honestly understand why GameStop would make a move to sell DLC. If you are a retail giant who is being threatened with extinction, you have to make some crazy decisions in order to stave off death. I think part of the reason why collector’s editions of games are becoming so over the top lately is because of retail trying to keep their slice of the pie. You can’t download night vision goggles.

With that, how many people are out there who still game, but do so without the means of the internet? How many users have an Xbox 360 or a PS3 and simply never update anything due to lack of an online connection? Sure it’s small, but do these consumers become ostracized because they simply don’t want to have an online connection?

What do you think; Is retail really going to die?