| mchaza said: If there is a DD console and there is no physical sales of games at all, then the big companies can control the market and never do price cuts, and increase the price if they want to. Since they control the market and there is zero competition. an DD only console will fail, by fail it will sell around 5-10 million units but an physical ownership one will sky rocket like the PS2. |
This doesn't really happen in practice. Or rather, it really depends on who's running the DD store.
Wiiware doesn't have price cuts and keeps prices flat, because Nintendo has complete control over it and Nintendo doesn't think price cuts improve bottom lines.
At the other end of the spectum is Apple's App Store, where the same game can fluctuate in price from $10 down to $1, or from $3 to free. Just this weekend, Resident Evil 4 dropped from $4.99 down to a single dollar. It'll go back up, then down again once Capcom feels it needs some promotion.
You're worried about price fixing because there's only one retailer, but as long as publishers have control over price, they'll use it to compete.
"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event." — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.
