Ubisoft reveals profit margins for physical versus digital sales on console

[flashfire926]

With the middleman removed, digital is better in almost every single way. Better for the console maker, the publishers, and the consumers.

More games will be willing to launch at $39.99/49.99 price point, and there will be deeper discounts and sales on games too,

Doing the math, an $49.99 game in digital earns $35 for the publisher, while a $59.99 game in retail earns them $33. A lower price point in digital still benefits the publisher more than a higher price point in retail.
For the console maker, a $49.99 game in digital rakes in $15 for them, while an $59.99 game in retail only rakes in $12.

Even if not many games launch at that price point, expect more frequent and deeper discounts, due to the publisher being more willing to take a hit in digital than physical.

If that flat fee thing is true, than it sways the direction towards digital even more.

edit: so lets recalculate everything with the flat fee included. 

Lets say capcom launches street fighter V: arcade edition for $40 in retail and digital. After removing the the fees, capcom gets $18 in retail (lets ignore that sony and capcom might have a deal on the game or something, and capcom is just making the game with their own money and resources). 

In digital, capcom gets $28. Night and day difference, right? Who will turn down the 55% more revenue?

Last edited by flashfire926 - on 12 February 2018