By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Digital games are a Prisoner's Dilemma situation.  Publishers and the big 3 make more money from digital sales.  That motivates them all to push for more digital sales and even create this narrative that "digital is inevitable".  On the other hand, who are they taking these sales away from?  The publishers get more money, but who is losing?  The retailers.

If digital sales get pushed too much though then the publishers, the console makers and the retailers will all be worse off.  If retailers can't make enough money on software, then they will demand to make money on the hardware.  That will drive up hardware costs.  The biggest thing that makes consoles attractive is that the hardware is cheap (i.e. no one makes a profit off of it).  But if retailers can't make money on software then they will demand to make money on hardware.  Console prices will then skyrocket and everyone is worse off.

It's a Prisoner's Dilemma.