Ubisoft reveals profit margins for physical versus digital sales on console

[Teeqoz]

RolStoppable said:

Teeqoz said:

The second hand market for other media is dissappearing even faster than for games. For music and movies, you don't even own the media at all. You subscribe to a service that provides them.

So I'd say it's a bit misleading, every other industry was fine with its second hand market, but that second hand market doesn't exist any more for other entertainment mediums.

I was speaking in broader terms than mere entertainment, but okay. You are right that other entertainment media have seen their used markets crumble, but that's the result of falling prices. Nowadays you pay around €1 for a new song whereas previously you paid €6 for a CD. Similarly, what was previously charged for a DVD or Blu-ray buys you a month or two of subscription to a big selection of TV shows and movies. There's also the difference to video games that music artists and TV shows/movies have other sources of income, like concerts, ad-supported broadcasts and cinemas.

Both cinemas and ad-supported broadcasts are faltering in competition with streaming (notice the trend - digital distribution outcompetes traditional channels). Concerts are doing well due to an increased focus in experiences from millennials and teens.

As you say, the second hand market has crumbled as a result of digital distribution channels (that don't allow resales) marginalizing physical media by having much lower prices. Yet your argument is that digital distribution for games won't benefit consumers? The trend for digital distribution from other entertainment mediums suggests the opposite - physical distribution can't even come close to compete. Same thing will happen for games. Xbox Game Pass and Steam sales are just the start.

Yes, the second hand market for stuff like cars is still alive and strong, but why on earth would you look at trends from cars... instead of more similar things (in terms of how you consume them) like music, movies and books?