Ubisoft reveals profit margins for physical versus digital sales on console

[flashfire926]

Darwinianevolution said:

flashfire926 said:
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.

I don't think so. There is no real evidence that a digital-only market would benefit the consumer at all. A monopolistic way of distribution would allow them to increase the prices, and they would only have deals when they decide to do so. With retail, we get both the store's own discounts and offers, second hand market and the ability to access to games already discontinued (without needing to rsort to that evil piracy). Games are more profitable digitally already, and yet we keep seeing the same exact prices than always.

The reason  we see the same prices is because as of right now, Physical is still plays a huge roll. Look at retailers are pissed at xbox games pass, so much so that they decided to delist xbox consoles. 

Even though Gamestop is declining, it still has more than 4000 stores worldwide. If console makers allow lower prices for digital now, retailers will get extremely pissed and discourage people from buying said console, and even might stop stocking said console and games because everything is available cheaper in digital (like gameware did to xbox). After all, you cant buy the console itself digitally. And still need retailers to do that.

And needless to say, take out a huge chunk out of console and game sales. Give it two-three more years. Once brick-and-mortar shops fade to irrelevance, thing will DEFINETLY be cheaper in digital. Xbox Games Pass is just a small taste of what's to come.