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
The system designed to make the most money is not designed for less wastage etc.
It’s why we have supply chains going from Brazil to Thailand and then to USA. Not coz it’s cheaper to do so but because that’s how you make the most money.
So that businesses who stock their console will promote that fact and hence sell more consoles without the manufacturer spending excess on advertising
ELI5 – making a disc and getting it to the store has costs from manufacture to shipping called “overhead”. None of that goes back to the company. The profit gets eaten up by all the costs to get that disc to a store shelf. Add to that, some retail outfits will haggle a bulk discount – if they order more than X amount of units then the cost is lower. While this puts the game out there, again that eats into profits if the game has trouble selling.
You download a digital copy and pay the same amount (e.g. $65.00 US) for the game that money is all profit. The only cost would be promo codes – if anything they can give more promos because there is no overhead with digital distribution.
At this point you are paying to get the game right away, no fuss no muss.
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