Until around 2000, the primary distribution method for video games were through physical media such as
CD-ROMs,
DVDs, or
game cartridges, including packaging and instruction manuals. Preparing enough copies for vendors to purchase and sell to consumers on the release day required a significant amount of market forecasting. Episodes in the industry's past, such as the
1983 video game crash, had made publishers wary of producing in great excess to avoid the situation that led to the
Atari video game burial. On the other hand, having too few copies available at the game's launch can lead to consumer dissatisfaction. Retailers like
GameStop and
Amazon.com discovered in the early 2000s that the pre-ordering mechanism helped with forecasts, as they could order a reasonable number of copies of new games based on pre-order interest, which, in turn, helped publishers to determine how many physical units to create. Then, pre-orders were usually placed by providing the vendor with a small percentage of the game's cost to hold their reservation (such as $5 or $10 on a $50 game), with assurances they would receive their copy on release day after paying the remaining balance. Retailers would be able to use pre-order money towards other investments, effectively accruing some
interest on the pre-order fee. As the video game market grew with some widely popular series like
Call of Duty and
Grand Theft Auto, publishers would prepare by printing large runs of the games and having them ready to ship to retailers so that even consumers who failed to pre-order would likely be able to get a copy within a day or two of release, negating the primary drivers to pre-order. Furthermore,
digital distribution eliminated the need for retail versions started to take off, as there is effectively no fixed volume of digital copies. Then, publishers and retailers started to turn to other methods to encourage pre-orders. Publishers created limited edition packages that would include additional physical items with the game, such as art books, soundtrack CDs, or figurines of the game's characters. Such editions would be published only in limited numbers encouraging consumers to pre-order early to reserve one. Retailers made deals with publishers to allow for unique content for the game that could be obtained only by pre-orders through that vendor. In some cases, a game can be significantly delayed or even canceled, making the pre-ordering process useless. In most cases, a pre-order can be refunded to the purchaser prior to release. However,
Nintendo has a policy for digital pre-orders that does not allow such refunds. Consumer authorities in Germany and Norway took Nintendo to court in 2019, arguing this practice violated the
Consumer Rights Directive 2011 for the European Union. The court ruled in January 2020 that Nintendo's practice does not violate the directive, though the German consumer authority does plan to appeal the ruling. ==See also==