Why do games cost more to direct download on a console than to buy a disc? Surely direct download saves the manufacturer costs on transport, shipping, actual materials for disks and packaging, setting up deals with retailers etc…
In: Technology
This is pretty simple if you don’t overthink it. People aren’t only willing to pay for the value of a physical product and the labor used for manufacturing and logistics. People are willing to pay more for convenience.
There is a difference between a good and a service. In this situation, you see a combination of the two.
(value of ) Game + (value of) Instant Download + (value of) Convenience of not having to leave your home = higher price.
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