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Forums - Gaming Discussion - Ubisoft reveals profit margins for physical versus digital sales on console

AlfredoTurkey said:
Cobretti2 said:

Yes it is. but if they gonna cry poor. increase the price of physical games. They been at $60 since last gen. $70-$80 for a AAA game is not that expensive.

Would that put an end to DLC though or the process of chopping up games to sell at a later date in make more money? And if games were eight dollars, would people still buy them? I know I wouldn't pay eight dollars for a single game lol.

I would if it got rid of DLC and they just put it all in.

 



 

 

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AlfredoTurkey said:
shikamaru317 said:

I kind of feel bad for buying physical games at $20 now. If I'm reading that right, the publisher only gets $3 on a $20 physical sale, versus $13 on a $20 digital sale. No wonder the publishers are pushing digital so hard. 

They could always spend less money on the games themselves to increase profits. No one is putting a gun to their heads here. 

This. Other than a few exceptions like Final Fantasy, I find that most of the hundred million dollar games are kind of lackluster. I'm sure Nintendo didn't spend anywhere near the amount of money making Breath of the Wild or Super Mario Odyssey that Ubisoft does making an AssCreed game, yet I'd much rather play either one of those games than any Ubisoft game.



Yep. The big loser here is the retail channel. Sadly, even though overall costs to get the product to the consumer go down, the price of a digital game does not.

I'm keen to see more digital focus personally. Have no interest in obtaining physical crap any more. Its far easier to just go digital. Especially considering my belief that game consoles are going to be supported more like the mobile sphere in that there will be no loss of gaming content support between new and old hardware. Sure new hardware will scale up in power an functionality, but the core system will continue to support the older software for years to come.



Cobretti2 said:
AlfredoTurkey said:

Would that put an end to DLC though or the process of chopping up games to sell at a later date in make more money? And if games were eight dollars, would people still buy them? I know I wouldn't pay eight dollars for a single game lol.

I would if it got rid of DLC and they just put it all in.

 

That's a lot of moola when you add it up lol. Imagine what the vintage market would look like at that point. We'd be paying $300.00 for a stand alone cart of Megaman 2.

shikamaru317 said:
SecondWar said:

You through me on this when you said 20% licensing fee on the cost of goods sold, regardless of the sales price. Although to me this doesn't make sense, this means a unit would be loss making at anything lower the $20 and they would still sell a fair few even when they get down to 15/10.

You know, I don't think I've ever actually seen a game with a physical list price below $20. I assume that when you see a physical game going for less than $20, the retailer is responsible, because they brought too many copies from the publisher and want to clear out inventory to make room for newer games. If that's the case, then the retailer is taking the loss on those copies, not the publisher, but I could be wrong of course.

I saw Xenoblade X for sale at a Target in Alabama back when I was there for $17.00. 

SanAndreasX said:
AlfredoTurkey said:

They could always spend less money on the games themselves to increase profits. No one is putting a gun to their heads here. 

This. Other than a few exceptions like Final Fantasy, I find that most of the hundred million dollar games are kind of lackluster. I'm sure Nintendo didn't spend anywhere near the amount of money making Breath of the Wild or Super Mario Odyssey that Ubisoft does making an AssCreed game, yet I'd much rather play either one of those games than any Ubisoft game.

I agree but the men and women that work for Nintendo operate in a space where art and money are as close to a 50/50 ratio as can be achieved. Ubisoft and companies like them operate inside of a mindset that thinks "how much art do we have to give them so they'll buy our game and shut the fuck up". It's the dollar they're after. The art is just a nuisance that is necessary to make said dollar.



superchunk said:
 Its far easier to just go digital. 

Of course, "easy" is subjective so, this probably won't matter to you but... how much easier is it to push a button on your console and wait for a few hours than it is for me to push a button on Amazon and then pick the game up at my door step 24 hours later? Faster, sure. Easier? Maybe... a little... tiny... bit? 



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If I understand correctly, the publishers get 70% of the consumer's paid amount in digital distribution, but only 55% for a physical product?



AlfredoTurkey said:
Cobretti2 said:

I would if it got rid of DLC and they just put it all in.

 

That's a lot of moola when you add it up lol. Imagine what the vintage market would look like at that point. We'd be paying $300.00 for a stand alone cart of Megaman 2.


LOL check out the vintage market for PAL games. Especially AUD editions. Snowboard kids 2 over $1000AUD+, Paper Mario about $600-700 etc...



 

 

superchunk said:
Yep. The big loser here is the retail channel. Sadly, even though overall costs to get the product to the consumer go down, the price of a digital game does not.

I'm keen to see more digital focus personally. Have no interest in obtaining physical crap any more. Its far easier to just go digital. Especially considering my belief that game consoles are going to be supported more like the mobile sphere in that there will be no loss of gaming content support between new and old hardware. Sure new hardware will scale up in power an functionality, but the core system will continue to support the older software for years to come.

At that point we may as well all become PC gamers and Nintendo, Sony and Microsoft release games on Steam lol.

Steam has proven itself to be the one digital platform that will probably outlive most of us haha



 

 

AlfredoTurkey said:
superchunk said:
 Its far easier to just go digital. 

Of course, "easy" is subjective so, this probably won't matter to you but... how much easier is it to push a button on your console and wait for a few hours than it is for me to push a button on Amazon and then pick the game up at my door step 24 hours later? Faster, sure. Easier? Maybe... a little... tiny... bit? 

1) Not having to get my mail.

2) Even physical requires install on 2/3rds of consoles.

3) Mins to couple hours is FAR less than 24~48hrs for delivery. (also, read #2 again)

4) My statement was referring to playing and switching between games on the daily, not the 1 time cost of buying/installing.

Yes, it is easier.



Cobretti2 said:
superchunk said:
Yep. The big loser here is the retail channel. Sadly, even though overall costs to get the product to the consumer go down, the price of a digital game does not.

I'm keen to see more digital focus personally. Have no interest in obtaining physical crap any more. Its far easier to just go digital. Especially considering my belief that game consoles are going to be supported more like the mobile sphere in that there will be no loss of gaming content support between new and old hardware. Sure new hardware will scale up in power an functionality, but the core system will continue to support the older software for years to come.

At that point we may as well all become PC gamers and Nintendo, Sony and Microsoft release games on Steam lol.

Steam has proven itself to be the one digital platform that will probably outlive most of us haha

Steam is awesome. However, it is not a Switch (amazing form-factor and portability) or a dedicated console of any form. It is a PC game platform which requires PC architecture and associated problems as well as complexity. There is a reason consoles eclipsed PC gaming and are now the default build architecture. True plug-n-play experience on the TV (or in hand as in Switch). I build my own PCs and am a Software Developer, so please don't reply with nonsense about simplicity of PCs being the same as consoles... I'm not tech-ignorant but I have kids and family who are... guess which platform I get more questions from? Steam will never remove consoles. In fact, as consoles continue to drive more and more of the gaming business and expand their control scheme, I'd see Steam / PC gaming continue to decline.