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  3. Have they explained why digital games are the same price as physical?

User Info: Mikasa1Ackerman

Mikasa1Ackerman
1 year ago#11
ZDT_Leader posted...
I get that but still doesn’t make a lot of sense to me personally.


retailers may loose their business, and the company will make a hard time selling their consoles.

User Info: ShELbY_GT500

ShELbY_GT500
1 year ago#12
GinsuVictim posted...
You're paying for the license, not the delivery method.


Pretty sure the RRP of something includes the cost of transport. You do know trucks don't work for free, and I'm sure the retailers arn't wearing the transport costs on their own backs. So yes the costs get passed onto the consumer.

ZDT_Leader posted...
I get that but still doesn’t make a lot of sense to me personally.


Because if digital games were cheaper than retail games where do you think most gamers are going to buy their games? Digitally of course. That means a lot of retailers like your EB Games, JB Hi-Fi, Targets ect will lose a lot of business. I'm sure there's a contract in place to prevent digital games from being cheaper than physical. Other than when there's a digital sale on ofcourse.
Yeah, well, you know, that's just like, uh, your opinion, man- The Dude

User Info: GinsuVictim

GinsuVictim
1 year ago#13
ShELbY_GT500 posted...
Pretty sure the RRP of something includes the cost of transport. You do know trucks don't work for free, and I'm sure the retailers arn't wearing the transport costs on their own backs. So yes the costs get passed onto the consumer.

Then physical should cost more than digital, but typically doesn't.
I'M RUNNIN' THIS MONKEY FARM NOW, FRANKENSTEIN!!! - Capt. Rhodes, Day of the Dead (1985)

User Info: lunaticcore

lunaticcore
1 year ago#14
They have to keep retail happy.
Endless Metroid month.. Samus Returns HYPE... Come watch us playthrough Super Metroid, Zero Mission, AM2R and Metroid Fusion. http://bit.ly/2vlfYbS

User Info: Discharged19DCS

Discharged19DCS
1 year ago#15
In the uk, digital games are considerably more expensive than physical.

For example. A new release is often £55-60 digital whereas I can always find physical for about £40 or lower on release. I'd much rather go digital but the price difference is just too much.

User Info: ShELbY_GT500

ShELbY_GT500
1 year ago#16
GinsuVictim posted...
ShELbY_GT500 posted...
Pretty sure the RRP of something includes the cost of transport. You do know trucks don't work for free, and I'm sure the retailers arn't wearing the transport costs on their own backs. So yes the costs get passed onto the consumer.

Then physical should cost more than digital, but typically doesn't.


The reasons why have been explained.

I mean seriously who do you think pays for the logistics of getting the physical games to the stores? Not only would the cost of your video game cover the logistics but it'd also cover the employees wages, the rent and services of the store and so on.
Yeah, well, you know, that's just like, uh, your opinion, man- The Dude

User Info: agentspoon

agentspoon
1 year ago#17
I don't have an issue with digital prices for a few reasons.

1 - Ease
2 - Pre-loading
3 - On the minute midnight release.
4 - Convenience of having all games in one place.
5 - But the biggest one is Game Sharrington

Game Sharing is the single bed thing MS has done this gen. If you have someone you trust all your games are half price.
HOLY ****! What is this? Forged in Gods very flames! Do mine eyes tell me lies? A new Elder Scrolls game?
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User Info: SigmaLongshot

SigmaLongshot
1 year ago#18
Okay, this is a topic that comes up fairly often, but I enjoy talking about it, so I'll pitch in.

Publishers are at the mercy of retailers in a variety of ways, but it's a well-established foundation that they are simply too scared to fragment.

Retailers take a large cut. It's normally between 20 and 35% of the tag price, and that's negotiated based on how much floor space/push the publisher wants the retailer to make on their product. If the publisher decides to give a bigger cut to the retailer, the retailer in turn might give the game some standee space, eye-level shelf space, play the game on some pods/screens in store - generally push it harder, to sell more copies. The inverse is that the publisher pays the retailer a minor cut, and the retailer stores your game at knee-height shelves, maybe give it a poster, that sort of thing.

INTERESTING SIDE NOTE: You know in stores like GAME, where there's a big chart wall with a top ten games in it? The number one game is not the best game, or the highest-selling game. It's the game that has received the highest cut from the publisher from the aforementioned deal. GAME is not obliged to tell anyone anything more than "it's GAME's number one game".


Where does digital distribution come into it? Well, retailers have been obviously very anti-digital. Retailers have imposed a tacit embargo on games that sell for cheaper digitally - if your game is £20 on the Xbox store and £45 in-store, that retailer is going to see a massive slump in sales.

It's happened in the past - Captain Toad Treasure Tracker in 2014 was, for its launch window, £5 cheaper on the eShop versus in-store in the UK. As a result, the retailer GAME started giving it a half-hearted single-face showing (just one copy on the shelf at any time) - something unheard-of for a mid-profile Nintendo release. In addition to this, Nintendo's subsequent releases saw a lacklustre showing from the retailer, which seems like they were holding a grudge (even though Nintendo normalised the price point for Kirby Rainbow Curse and Mario Party 10, GAME still gave them poor showing in-store, which impacted Nintendo's takings here in the UK). Nobody knows why Captain Toad's price point was a few pounds cheaper digitally (maybe Nintendo was getting cocky considering their steamroll in 2014, but it hurt them considerably in early 2015... in the UK, at least).

Basically, the retailers hold the profits of the publisher to ransom, unwilling to play ball unless digital games are the same price (and if you've seen games more expensive digitally, this is because your region's retailers have been incentivised by the publisher this way, too. Usually huge-profile releases - your Destiny and GTA - sell at about £55 digitally, just because GAME and ASDA want the glut of the sales).

People have argued whether or not the eradication of the retail sector in videogames would be a good thing. On one hand, without the firm grip of retail control, games could cut out all the needless distribution costs and sell for cheaper overall. On the other hand, without any competitive elements, there would be a monopoly and they could potentially just keep selling games for any price they want, relying on the public's acceptance of the established price point and raking in more profits.

Hope that helped!
XB1/XB360/Wii U: TotoMimo PS4: Gooey_Toto/SigmaLongshot
A decade working in AAA game development? Time certainly flies.

User Info: Marshall_Law

Marshall_Law
1 year ago#19
It's kinda like getting a cheeseburger at McDonald's, it a dollar, if you get that same burger with no pickles or onions,, it's still a dollar.
" people of the nation do not understand our banking system, if they did there would be a revolution before morning." - Henry Ford

User Info: GinsuVictim

GinsuVictim
1 year ago#20
Marshall_Law posted...
It's kinda like getting a cheeseburger at McDonald's, it a dollar, if you get that same burger with no pickles or onions,, it's still a dollar.

I haven't had a burger from McDonald's since the 80's.
I'M RUNNIN' THIS MONKEY FARM NOW, FRANKENSTEIN!!! - Capt. Rhodes, Day of the Dead (1985)
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