Forums - Gaming Discussion - Ubisoft reveals profit margins for physical versus digital sales on console

From ResetEra:

25% is the retailer's margin ($15 at $60, $5 at $20).
20% is the licensing fee + cost of goods from Microsoft/Sony/Nintendo for making a retail game ($12, and from previous conversations with industry figures, this is static regardless what you're charging).

By comparison, it's a flat 30% with digital.

Edit: Since people are asking, COGS = Cost of Goods Sold.



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Wait, Sony and Microsoft on the same line?! People here told me that Sony doesn't get the 30% digital revenue that the other platform holders get because of their size and other factors. This has to be a mistake on Ubisoft's part.



Some would see those as %s... others would see this as the first signs of an Ubisoft shift to $100 games!

I wonder what Steam's like though. Steam prices are typically lower than PSN/XBL (or at least they used to be, that seems debateable lately) so are they taking less than the 30% that PSN/XBL take, or do they take the same?



Bet Shiken that COD would outsell Battlefield in 2018. http://gamrconnect.vgchartz.com/post.php?id=8749702

I kind of feel bad for buying physical games at $20 now. If I'm reading that right, the publisher only gets $3 on a $20 physical sale, versus $13 on a $20 digital sale. No wonder the publishers are pushing digital so hard. 



Ka-pi96 said:
Some would see those as %s... others would see this as the first signs of an Ubisoft shift to $100 games!

I wonder what Steam's like though. Steam prices are typically lower than PSN/XBL (or at least they used to be, that seems debateable lately) so are they taking less than the 30% that PSN/XBL take, or do they take the same?

I believe I recently read that Steam gets 30% as well, but I'm not sure. 



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shikamaru317 said:

I kind of feel bad for buying physical games at $20 now. If I'm reading that right, the publisher only gets $3 on a $20 physical sale, versus $13 on a $20 digital sale. No wonder the publishers are pushing digital so hard. 

By charging significantly more for digital? That's hardly what I'd call "pushing" it, if anything they're pushing people towards physical with their digital pricing policies!



Bet Shiken that COD would outsell Battlefield in 2018. http://gamrconnect.vgchartz.com/post.php?id=8749702

Yeah, I get why pubs want that digital push, but I will continue buying bigger releases physical thanks to services like GCU and Prime. I just buy digital for sales when games hit really low prices.



I always claimed Sony got 30% of digital sales. Kerotan vindicated.



shikamaru317 said:

I kind of feel bad for buying physical games at $20 now. If I'm reading that right, the publisher only gets $3 on a $20 physical sale, versus $13 on a $20 digital sale. No wonder the publishers are pushing digital so hard. 

Wut. Where'd you get that from?

The pub gets $11 from a $20 physical sale, versus $14 from digital.

 

As for the percentages - nothing surprising. Straight 30% fee is the standard digital distributor fee.



shikamaru317 said:

I kind of feel bad for buying physical games at $20 now. If I'm reading that right, the publisher only gets $3 on a $20 physical sale, versus $13 on a $20 digital sale. No wonder the publishers are pushing digital so hard. 

Then why not make the games significantly cheaper in digital? They are going to earn more from digital regardless.



You know it deserves the GOTY.

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