What is Digital Distribution?

In the video game industry, digital distribution is the process of delivering video game content as digital information, without the exchange or purchase of new physical media. 

To facilitate the sales of video games, various game companies have created their own platforms for digital distribution. Platforms such as Steam, Origin and Xbox Live Marketplace, provide services to purchase and download digital content for either specific games consoles or to PCs. 

The image above represents different ways video game companies distribute their products. I believe the most efficient and effective way to distribute is directly to the retailer then to the gamer. This is because well known retailers will help with the marketing for the new game and so therefore will bring in higher profit.