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
Let’s say I make a thing, I actually make 1000 of them.
They cost me £10 each in parts and labour to make.
I sell 500 for £50 each, and the other 500 go to warehouse.
Over the next year I sell another 100 for £50 but I have 400 in my warehouse costing £1 per year storage and the sunk costs of £4000 making them in the first place.
I discount them 85% and clear them to stop paying storage and get some production cost back, or I just pay to warehouse them indefinitely.
If we take steam as an example. Steam take 30% of retail so the game maker still made 10% of the original, there’s no production cost so its all free cash.
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