greenmedic88 said:
Of course downloads are more profitable than physical media. Even with a hypothetical $5 discount. No media production, print materials, packaging and shipping costs. That's a given. Unless you're suggesting that publishers should pass those savings directly to the consumer, the difference to them is increased profit margins (more than $5). And that means better sustainability for developers of lower selling titles, even if they deserved to go platinum based upon quality, but didn't due to the whims of the gaming public. What it sounds like you're saying is that downloads should automatically be cheaper because of the reduced cost to publishers. That wouldn't increase the availability or accessibility of downloads at all. It would still sell to the same net savvy audience with the sole question being "do I want the disk, box and manual for a $5 premium?" Your argument seems to be that people won't pay for downloaded games because they're not being sold at a $5 (or 10% or any number) discount. That's under the presumption that the random $5 figure applies to all titles from $10 - $60. You're basically seeing things from the perspective of a brick and mortar retailer where buying in volume = higher wholesaler discounts. But wholesaler discounts don't apply to downloads since they're consumer purchased direct from the digital distributer. Bad for the wholesaler, bad for the retailer, but good for the publisher and presumably the developer if they receive a higher price per unit sold. Again, charging $50 for a download and the same $50 for a disc bought at a retail outlet means the same cost to the consumer (minus sales tax) who is not under the impression that the lack of a physical product means a discount should be given. They're not actually paying more for the download. Technically, without the sales tax, they are paying less, even without a digital distribution discount. Would a digital distribution discount be appreciated? Everyone loves a discount. Would it sell more units? Only at the expense of physical media, if at all. |
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We seem to be close on our views. But I will say that I'm looking at it from a consumer view. If downloads and in store are the same price I will never get the downloads. They give you less (tangible good) and I know it costs them less. While I don't expect them to say downloads save us 25% so I am going to give the consumer a 25% discount, I think it's absurd that they are saving money and not passing any of the savings onto the end consumer. I also think cheaper media will always find it's way to more consumers whether it be via download or physical media.
