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Ka-pi96 said:
Conina said:

They compete, but within limits. Digital and retail versions of a game are similar, but not the same product; both have advantages and disadvantages.

If they compete then shouldn't that at least price them the same and not £10-£20 more expensive?

Again: they are similar products but not the same!

Some people prefer digital versions: they don't have to change discs (which will become an even bigger advantage when remote play gets more popular), the discs can't scratch (or become unreadable), the optical drive won't degrade, no noisy installations (spinning discs)...

With a fast internet connection you can play the game a few minutes after you bought it... you can download a 40GB-game within an hour with 100 MBit/s. If you order the retail version from Amazon, you will have to wait at least a day... imports can take weeks to arrive. If you buy the retail game in a store you have to invest time and money (driving to the store, waiting in line...)

Other people prefer retail versions: the game ain't bound to an account, you get a pretty box and a disc, perhaps even a manual or map. And not everyone has a fast internet connection at home.

Even if the pricing of the digital version is initially higher... publishers are much more flexible on pricing digital versions. They can slash the prices for a few days and raise them again after the sale... the controlable time frame allows higher discounts (f.e.: Tomb Raider: Definitive Edition for €12, less than €10 with reduced PSN-cards) and additional discounts for PS+ members. That doesn't really work as smooth for retail versions.