Author Topic: Internet and Digital Distribution  (Read 507 times)

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September 27, 2017, 02:56:45 PM
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I just started a test game to see if it was possible to survive only providing online services to other companies.

I started with about 400Mbit of digital distribution deals in 1980 at around 15% (which seems reasonable, and also about the max you can get people to agree to).

It didn't work... I only made about $6k/mo, and the Internet bill alone was over $20k/mo. This seems to indicate that any digital distribution deals are always just shooting yourself in the foot, because they'll always cost several times more than what you get paid.

So, I have some questions:
- Is the Internet bill calculated based on your available bandwidth from the number of servers you have, or is it only based on what you use that month?

- Does the cost of bandwidth decrease with time? I could certainly see digital distribution being impractical in 1980, when the cost of a 400Mbit connection would have been astronomical. (whereas these days, you can get 10Gbit for $5k/mo)

- Is there any way to tell how large a certain product is, so you can estimate bandwidth usage against the price of the software? If a company is selling a 10GB game for $5, I don't want to distribute it for them... :)

October 05, 2017, 12:13:27 PM
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Heya SpeedDaemon,
last night I started a game in 1990 and tried to develop my own software. Soon I was getting to the brink of bankruptcy.
By that time I had one big server and my SVN only used some percent of it, so I started opening a digital distribution service.

And made 10k to 100k per month only from that. I was able to sustain a small company (15 employees) exclusively from digital distribution.
And i only got 5 to 8% of their shares.

At the beginning, in the 80s, I totally agree with you, that there is not much money to make from it.
But then you have to consider, that you don't need a single employee in this game to reach 100% market share in digital distribution.