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
There are two other things that I haven’t seen in the other comments.
1. Even though digital is cheaper to produce but there are costs associated with hosting and maintaining servers where the digital code is stored.
2. Companies that publish video games don’t want upset the relationship with stores that sell physical copies of games. If EA sells their games cheaper digitally on Xbox or PlayStation than GameStop or Walmart there will be no incentive other for retail stores to continue selling EA’s games and if they do that then EA will lose a lot of money.
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