E.g. I just bought a game 85% off on Steam (for a discounted series and I own all the previous titles). Assuming the publisher makes no profit from this sale, how do they make future revenue from me?
In: Economics
The economics of video games (and downloaded media in general) is weird. The actual thing you’re buying is a license, which costs practically nothing. All the costs involved with getting you a game to play is already paid for (mostly development and marketing), and the company is just trying to recoup the losses. The only way the company makes money is by selling enough copies, and there’s a ton of sunk cost fallacy that goes on.
Fun fact: most games are a net loss. So most game companies don’t make money.
Latest Answers