this post was submitted on 14 Aug 2023
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[–] Selmafudd@lemmy.world 13 points 1 year ago (2 children)

Surely the difference in overheads involved in physical vs digital would mean profits are increasing at a higher rate then sale price

[–] Kecessa@sh.itjust.works 10 points 1 year ago

Maybe, development cost hasn't gone down though, not one bit!

[–] billiam0202@lemmy.world 3 points 1 year ago (2 children)

Not really.

Optical discs are dirt cheap. This old answer from Quora says physical media (disc, case, artwork, inserts, etc) accounted for $2-$5 of the cost of a game.

[–] nomnomdeplume@lemmy.world 2 points 1 year ago (1 children)

And selling on steam costs 30%

[–] IronKrill@lemmy.ca 5 points 1 year ago

IIRC 30% was also the standard box store cut. Steam just carried it on.

[–] Selmafudd@lemmy.world 1 points 1 year ago (1 children)

So that's like a 2.5 - 7% margin on a $70 game.. an extra 7% profit margin at the high end is pretty significant

[–] billiam0202@lemmy.world 1 points 1 year ago

Yes, if you're selling millions of units. But if you're buying just one, $2-$5 probably isn't going to matter to you. Not many people would buy a game at $68 they wouldn't buy at $70.