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GameStop Shuts Down Cloud Gaming R&D

GameStop Shuts Down Cloud Gaming R&D

As the game industry continues to move slowly but surely towards a completely digital distribution system, it would appear GameStop is dropping plans to develop its own proprietary system.

Spawn Labs is part of an R&D venture that GameStop acquired several years ago to explore the possibilities of a streaming service utilizing “the cloud.” Actually, I should say they WERE, as GameStop has recently pulled the plug. Corporate big-wig Matt Hodges revealed that the concept is being abandoned, partially laying the blame on customers. “While cloud-based delivery of video games is innovative and potentially revolutionary,” he says, “the gaming consumer has not yet demonstrated that it is ready to adopt this type of service to the level that a sustainable business can be created around it.”

While they won’t be heading into the streaming market anytime soon, luckily GameStop doesn’t seem completely oblivious to current digital trends. Hodges does acknowledge the importance of embracing (at least in part) the move away from physical media, citing their backing of services like the one Sony has planned. “…we recognize that our strength is in helping our vendor partners connect with gamers, so we will focus our energy on selling existing services, such as PlayStation Now, through our retail channels.” He states.

But should GameStop give up on its cloud-streaming plans so soon? Check back tomorrow as I explore what a digital future means for a brick and mortar store like GameStop.

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