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 not a factor of costs. Just because they lower costs does not mean they pass savings onto the consumer.
The price of something is locked in to maximize profits. You have two counteracting things — as the price gets higher, less people buy it, but it also produces more profit. You have to find that sweet spot where the majority of people buy it at the right price to maximize profit.
For in store games, people have locked in that price pretty hard.
While realistically it could be lower in an online store, there is likely some agreement with a few big retailers that they do not undercut them. It could easily be seen as anticompetitive if the majority of people could buy a game online for cheaper, and stores are only there to help with the people who need physical purchases.
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