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VAMatt said: If they lose $50 per system, and they gain $6 per digital game over physical game sold, and the attach rate is 10 games per console, and 50% of sales are digital regardless of console type, then Sony cannot make their money back. They would only get $30 back over the life of the console. There are some guesstimates in my math, but it should be in the general ballpark. |
I love this laser focus on the difference of digital vs physical profits, and difference of 50% vs 100% digital, it's all so relative.
What's the relative difference of 2nd hand market giving Sony NOTHING, compared to mandatory digital giving Sony best possible margins?
2nd hand used market can re-sell single disc to MULTIPLE buyers, so it's not just 2:1 but potentially 3:1 or more that is being lost.
The existence of 2nd hard market doesn't even incentivize Sony to maximally drop prices, since 2nd hand can always beat them.
The most price senstitive consumers will always utilize that, so Sony's long tail sales are always dependent on prestige of not being used.
When 2nd hand is destroyed, they will at least be more incentivized to drop prices enough to maximize capital returns with increased sales.
And crying for loss of game retailers is fine, but Sony does not absolutely depend on them to move consoles.
General retailers sell TVs for similar amounts of money and shelf space, without follow on software business to prop them up.
They can just as easily sell game consoles under same business model, of course also having accessories and so on, unlike TVs.
