The Next Billion-Dollar Company

VC and tech industry veteran Stewart Alsop believes the videogame industry holds big, big opportunities

While the majority of video game purchases are made at retail, digital distribution is quickly emerging as a significant force in the industry. Whether it's full fledged PC games, casual titles, or downloadable content and Arcade titles through Xbox Live, more and more gamers are making use of digital distribution.

In fact, while digital distribution is generally considered a nice complement to the retail model today, it could one day potentially replace retail as the main way people purchase their games. Bill Gates has said multiple times that all the hype concerning the format war between HD-DVD and Blu-ray won't matter in the long run because all content will be online. And more recently, SCE president Ken Kutaragi expressed a similar sentiment, noting that Apple has been successful with its e-distribution and that it's time for Sony to make a move as well.