I know there seems to be an aversion to brick and mortar in this thread, but for further proof of this business model, you can even look at sites like Groupon. I could stay at a hotel and buy a room from Groupon instead of the hotel itself and get a discount.

Also, there are whole websites dedicated to selling game codes as their main source of revenue (I think) such as gamedealdaily and cdkeys (both are .com, but I didn't want to drop links in. I bought codes for the Last of Us on PS4 and the Master Chief Collection from those sites at a severe discount).

You keep using this example. Its not teh same thing.

There is only one place in the world to download games for the PS4. Thats on the PS store. So all game codes for any game that they are selling will ultimately go through the very same store.

This is not like target and wallmart offerring dirfferent deals at different times. 

Here, amazon, is offerring a game in a form factor that you can only get from one place. And the place in question also happens to sell the exact same game in the exact same form factor. But at twice the price that amazon is offerring it.I do not know how else to explain this.

This is like being the sole distributor of oreos, and having a store where you sell only oreos. But people have to go to another store to pay for a coupon that allows them come back to your store and take the oreos for half the price.

You're describing Groupon. The point of such a model is to attract customers to your business that wouldn't otherwise go there. In this case, it's people who shop at Amazon but not necessarily buy digitally from the PS Store. If a customer who went to Amazon intended to buy a game on disc, but then sees a digital code for cheaper, they'll be introduced to the PS Store and may be convinced of using it in the future.  

And you are hung up on the distribution method and not the fact that the item you are purchasing is treated the same way as a physical item for the sake of sales.

So instead of Oreos and wool coats, look at it as Walmart and Target both offering Oreos for separate prices. You can only get Oreos from one place, Nabisco.  However, they distribute by selling Oreos to stores like Walmart and Target for a specific price.  Generally speaking, the more they buy at once, the less it costs.

So essentially you are complaining that Nabisco lets Target and Walmart set their own prices on Oreos instead of making it as cheap as possible for everyone all the time.  Go ahead and replace the word Oreo with digital game and the words Walmart and Target with Gamestop and Amazon, then Nabisco with Sony.  It is the same thing.

Ultimately it comes down to you not understanding how business and economics work.  It's ok, you can be ignorant to those things.   You just can't expect everyone to side with you when you are.

Ok, so basically you are saying sony (nabisco) gives amazon and gamepot the choice to sell digital  games at whatever price they want. 

But everything you ust described is the relationship between a wholesaler and a retailer in terms of general business. But in this case, the wholesaler is also directly selling to the consumer. But not just that, every consumer that buys from whatever retailer, is still sent right back to the wholesalers warehouse.

You can call me ignorant all you want, but if you choose not to undertsand what I am saying there is nothing I can do about that. But there is nothing ignorant  about what I am saying. All these concepts and theories of business simply are all missing one thing.

There is only ONE place to get digital games for the PS4. So even what you buy from other stores still takes you right back to that one place. 

Have you considered http://www.investopedia.com/terms/l/lossleader.asp
A loss leader is a product or service at a price that is not profitable but is sold or offered in order to attract new customers or to sell additional products and services to those customers.

Amazon might sell those codes at no profit or even a slight loss to attract attention, recommend other products alongside, sell Amazon prime memberships etc. Btw how are you so sure you download all games from 'psn'. I'm not, cause I don't understand otherwise why some games download so much slower than others. Even if it's all coming from some psn data vault, Sony is still nothing more than the delivery truck. Two stores can sell Oreos at different prices, chances are they were delivered by the same truck. The psn store only acts as the accountant, cementing the code to your account.

The psn store doesn't make games. Sony does, and can cut itself deals internally as much as it likes. Sony as publisher and Sony as distributor are still seperate entities. Sony as pubblisher can still make a deal with Amazon at lower prices as with their own store. For one, the bulk of codes sold to Amazon is instant profit. Amazon will advertise the deal, free marketing. And whatever still sells on their own store is pure extra profit. It's simple business, win-win situation.

Bold 1: I am giving you examples of physical items because you have shown no comprehension of the fact that digital and physical can't be the exact same scenarios.  Also, there are plenty of companies that sell through various fronts and direct items from their warehouses.

Bold 2: You keep hanging up on this when you are actually wrong.  There is only one place to PLAY the digital games that you GET from a number of locations.  I can get a digital PS4 game from Amazon, ebay, gamestop, my best friend, a card on the street left by a homeless guy.  However, to access and use it I have to have a PS4.  It is a different ecosystem but ultimately acts the same way.  It also all goes back to your original point that has been refuted countless times.  Yes, Playstation is ok with other services charging less than they do on their own site because of all of the aforementioned reasons as well as others that we don't have access to.

Again, if you don't like it don't buy digital.  If you are that offended by it write to the companies that are offending you with their practices.  Complaining on a game forum that you can get the same item, digital or not, for less in one space than you can in another, just comes across as ignorant and entitled.

No, what I'm saying is that Amazon bought their keys from SE, not the PS Store, Amazon can decide whenever they have a sale.

I see..... o this suggests that its possible for SE to authorize sony to honor digital keys they sell to another store at a different price?

Thats pretty interesting if thats the case.

Because retailers can mark down their prices when others don't.. happens all the time with physical games too, unless I'm understanding this wrong?