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TomaTito said:
Soundwave said:

Physical games can end up costing $15-$20+ per copy over a digital sale for a publisher. That means really a physical game should cost at least $15 more than a digital version of the game.

Soundwave said:

Physical games are just not feasible in the modern industry, when you can have a digital copy that is free of any shipping/packaging + retailer cut fee that alone right there is like $15 cheaper. 

I was going to say that digital games should be at least 15 cheaper than physical copies, based on what you first wrote. But then I saw you already brought that up later.

If digital games were actually 15 less, that would be okay, but it never happened. The digital publishers got all the extra profit. We, as customers, only got the convenience of having them digitally.

There's no $15 difference because the royalty fee for a physical game has always been lower. It costs a publisher about 20% plus the retailer cut.

For digital games, console manufacturers themselves have become retailers, so the royalty fee was pushed up to 30%. At that point you are looking at a sub-$5 difference.

The major difference between physical and digital games for third party publishers is that digital doesn't make them worry about inventory. Physical games have to be produced in advance, so there's potential for losing money here if the printrun turns out to be too high.



Legend11 correctly predicted that GTA IV will outsell Super Smash Bros. Brawl. I was wrong.