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Forums - Sales Discussion - Capcom: the difference in profitability between retail sales and download sales is negligible

NiKKoM said:
Ssenkahdavic said:
Damn Sony/MS/Nintendo must be getting some nice bank outta digital sales.

Yeah.. but this can't be recieved good with the retail partners..  Sony/MS/Nintendo will be pushing digital more as they earn more money with it..  while the publisher don't really care.. but retail will not be happy if Sony/MS/Nintendo snatches sales from them..

More to it than that though.  Retailers get the double wallet penetration with none of these being able to be sold on the second hand market (Looking at you Gamestop).  

While the publishers do get something extra out of this...no used sales.  



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That doesn't make any sense. A huge amount of a game's sale goes to the manufacturer, and another enormous amount goes to the retailer. Both of those factors are simply gone with digital. Are the big companies snatching up all that extra profit for themselves?



Currently playing:

Bloodbath Paddy Wagon Ultra 9

negligible,i was hoping digi would be getting cheaper for us downloaders



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justiceiro said:
Jizz_Beard_thePirate said:
Then why the fuck did you make Phoenix Wright: Dual Destinies Digital Only? Go Fuck yourselves Failcom >:(


I will never get why this is such a bad thing. On PC everybody is digital(physical releases are close to wiiu ones), and not body seems to really care. Its the same game, for less. I support their decision.

The feeling of the stacked box, man.



badgenome said:
Jizz_Beard_thePirate said:
Then why the fuck did you make Phoenix Wright: Dual Destinies Digital Only? Go Fuck yourselves Failcom >:(

That is too close to Falcom for my comfort. You will call Capcom "Crapcom" from now on, and that is final.

Seconded. Don't make me take my earrings out.



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morenoingrato said:
justiceiro said:
Jizz_Beard_thePirate said:
Then why the fuck did you make Phoenix Wright: Dual Destinies Digital Only? Go Fuck yourselves Failcom >:(


I will never get why this is such a bad thing. On PC everybody is digital(physical releases are close to wiiu ones), and not body seems to really care. Its the same game, for less. I support their decision.

The feeling of the stacked box, man.

That you have to clean up from time to time, and have be carefull to not lost it,  or your mother throw away, or forgot in someone's place, that fall every time that you have to pick one in the bottom, that you need to get a bigger and bigger shelf at some point or another. The only reason to go physical for me is to sell the game later and use to buy more games. And guess what? capcom don't care about the people who want to sell their games used.



"Hardware design isn’t about making the most powerful thing you can.
Today most hardware design is left to other companies, but when you make hardware without taking into account the needs of the eventual software developers, you end up with bloated hardware full of pointless excess. From the outset one must consider design from both a hardware and software perspective."

Gunpei Yoko

I might be wrong here but from what I'm inferring, Capcom is saying is that profitability between digital sales and retail sales is negligible. I don't think it necessarily means that the profit from a single digital sale is the same as the profit from a single retail sale. It is obvious that there will be more retail sales than digital sales so if they were to total up the profits from both sales, profitability between retail sales and digital sales might be more or less the same (even though retail sales are higher) hence negligible.

I'd be happy for someone to correct me if I am indeed wrong.



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NNID: aminryu1

I need to stop buying games...

15 to 25 from a boxed copy that costs 40-60 which might be shared with a publisher.

or

10 to 21 on a title that costs 15-30 digitally. I guess those digital day ones are really profitable at 42 in profit. You can also bypass a publisher in many cases getting more out of the pie. There is also less fuss about getting a product on shelves which costs money itself. Does anyone know what the publisher developer margin would be on PSN,XBL, eShop? I just assume 70/30 split like Android and iOS. If that is the case it really seems like for developers specifically digital is the way to go. Less hassle more porfits lol.

With digital there is the 'benefit' of no used games, but in my experience you can't find used games from good devs so it's kind of a moot point.



aryu said:

I might be wrong here but from what I'm inferring, Capcom is saying is that profitability between digital sales and retail sales is negligible. I don't think it necessarily means that the profit from a single digital sale is the same as the profit from a single retail sale. It is obvious that there will be more retail sales than digital sales so if they were to total up the profits from both sales, profitability between retail sales and digital sales might be more or less the same (even though retail sales are higher) hence negligible.

I'd be happy for someone to correct me if I am indeed wrong.


Could be right but they really left it Open for discussion. This could be the case, considering that used games don't play a role in killing profit. They might enter that in a loses as well. Not sure. It's way to vague of a statement.



If they were talking about net profits for all downloads vs for all physical channel sales, they would have stated "profits", not "profitability".