Why are digital games...

[Thaliur]

Priced at the same levels as physical games? Surely all the costs involved with distribution are lower as there isn't any physical media to be shipped.

Producing physical copies of CDs from a fixed matrix is actually extremely cheap, once that matrix is created. The discs are just "stamped" and all the data is on there. The rest is mostly printing, and since most modern games don't include a decent manual anymore, that is not much.

In digital distribution, although there are no physical media or transport costs involved, there still are some overhead costs to be considered, like the internet connection required for the distribution servers, the servers themselves, managing everything...

Also, the physical component of the game publishing process is probably the lowest cost factor of the whole process.

 

[TrevHead]

They're not allowed to undercut the physical retailers for new games because those retailers would throw up a stink and refuse to stock it at all, and the dev/publisher would lose sales.

Partly this and just like DLC gouging is that publishers will charge as much as they think they can get away with.

Also there is less competion between digital stores especially when a game is exclusive to one store. XBLA, PSN, Origin.

On the other hand you have retail with brick and mortar and online and used sales which lowers the price quickly, also publishers manufacture x amount of copies based on how many they think they'll sell and there is a big difference between a run away success and a flop. Sometimes publishers get it very wrong like with Ubisoft with Child of Eden and Sega with Binary Domain.

On the other end of the scale you have the odd niche console game and handelds which have low number print runs and are successfull which keeps prices up. Nintendo's 1st party games are usually evergreen titles thats why they tend to stay near RRP

 

[Corven]

There isn't that much competition between dd companies. Steam is king. There should be more competition between game publishers. I now get my games from an importer which gets me cheaper prices than steam does + a box -_-.

Steam, gog.com, gamersgate.com, d2d(gamefly direct download), desura, impulse, origin, greenmangaming.com, getgamesgo.com, onlive(debatable), amazon direct download.

There's plenty of competition on pc, you just have to look and some of them are arguably better than steam since they allow you to download your game without drm masked as a download client.

And how many of those offer sales as often and as cheap as Steam does?

Quite often, as a matter o'fact I was able to get saints row 3 for 1/2 price on getgamesgo, when it was normal price on steam.

every single one of those sites has discount sales all the time, you just have to check them regularly.

 

[Lord_Jaroh]

Priced at the same levels as physical games? Surely all the costs involved with distribution are lower as there isn't any physical media to be shipped.

Note: this isn't an issue of digital game pricing issues per region. I'm Australian, so I automatically win that contest.

Because they want to make their cake and eat it too.

They will complain about the pricing of used games at Gamestop and then turn around and offer pre-order incentives for buying at Gamestop. They will complain that their games are "intellectual property" and that they should be treated differently then physical media. But they want the same control over their games as physical media and control how and when and where it comes out. They want to make the most money possible as cheap as possible with as little work as possible thus comes DLC nickel and dime strategies. For the same reason making games in "the next gen" cost $10 more per game, even though we're not getting games that are "worth" $10 more content-wise (and in many cases less).

Because they are all hypocrites.

 

[ElPatron]

Because why settle for trillions when you can have...

Billions?

They can get away with it, because the only alternative is paying to a store anyway.

 

[Fractral]

Priced at the same levels as physical games? Surely all the costs involved with distribution are lower as there isn't any physical media to be shipped.

Producing physical copies of CDs from a fixed matrix is actually extremely cheap, once that matrix is created. The discs are just "stamped" and all the data is on there. The rest is mostly printing, and since most modern games don't include a decent manual anymore, that is not much.

In digital distribution, although there are no physical media or transport costs involved, there still are some overhead costs to be considered, like the internet connection required for the distribution servers, the servers themselves, managing everything...

Also, the physical component of the game publishing process is probably the lowest cost factor of the whole process.

Pretty much this. Its the same reason why a lot of Kindle Books seem to be only slightly cheaper, or the same price, as their physical counterparts. (at launch day, they go down later, like everything else)
Its because the vast majority of the money that you spend on a game goes towards paying the developers, the publishers and the retailers, not for paying the costs of production and shipping- because on a per-unit basis, those are relatively small (not sure how much, but its definitely less than £1 per unit, with each unit being £45 new.)

 

[Zukabazuka]

While it might be cheap to produce lots of copies for the game there is still a lot companies involved.
First we have the producer company, then the retail company, then any license fee they have to pay, the shipping cost and then split the money that is over to the company.

Most of those companies ain't gotta settle with 5$ for each copy, they put money on the line and they want it back so they most likely gonna take more than normal.

 

[Woodsey]

Because retailers would throw a ***** fit if they were undercut. The advantage of DD is that they can have sales constantly.

 

[Lugbzurg]

Priced at the same levels as physical games? Surely all the costs involved with distribution are lower as there isn't any physical media to be shipped.

Note: this isn't an issue of digital game pricing issues per region. I'm Australian, so I automatically win that contest.

Where does this happen? Where I've been finding them, they've been a lot cheaper. I saw Batman: Arkham Asylum for, like, ten bucks. And it WASN'T one sale. Meanwhile, in stores, it was still, like, $30-$40.

 

[Worgen]

Because people will still pay it, games will charge as much as they can, I'm a bit surprised that cod isn't going for $70 at this point. It would certainly hurt sales so I guess activision does have a lil foresight.

 

[Da Orky Man]

There isn't that much competition between dd companies. Steam is king. There should be more competition between game publishers. I now get my games from an importer which gets me cheaper prices than steam does + a box -_-.

Steam, gog.com, gamersgate.com, d2d(gamefly direct download), desura, impulse, origin, greenmangaming.com, getgamesgo.com, onlive(debatable), amazon direct download.

There's plenty of competition on pc, you just have to look and some of them are arguably better than steam since they allow you to download your game without drm masked as a download client.

And how many of those offer sales as often and as cheap as Steam does?

Amazon offers sales quite often. For instance, tight now, Deus Ex: HR is only $10 on Amazon, and the Augmented Edition for $15. They're $30 and $40 on Steam right now.

You sure that Amazon offers that in all countries? Try as I might, I can't find any reference to any direct download service, at least on the UK site.

 

[Owyn_Merrilin]

Because people will still pay that amount

That's the only reason. It's also the reason why physical games are $60 to begin with; people will pay it. It has nothing to do with the cost of development at this point, it's just an arbitrary $10 increase on the already arbitrary cost of a game from last gen, done because people expect things to get more expensive over time.

 

[lacktheknack]

Because you've added another factor in place of packaging and shipping: Distribution fees.

And if you're going to be a jerk who claims "VALVE/CD PROJEKT/DIRECT2DRIVE/ETC DON'T DESERVE MY MONEY! I WANT CHEAP THINGS!": Everything is worth what someone will pay for it. If people are buying the games at the equivalent price (which they are), then too darn bad for you.

 

[ResonanceSD]

Because people will still pay that amount

That's the only reason. It's also the reason why physical games are $60 to begin with; people will pay it. It has nothing to do with the cost of development at this point, it's just an arbitrary $10 increase on the already arbitrary cost of a game from last gen, done because people expect things to get more expensive over time.

$60! I hate you guys =D

MW3 is STILL $99.99 for us.

 

[Alandoril]

As with most companies and profitable enterprises...short term thinking is the reason they do everything.

 

[renegade7]

Because they can be.

Also, brick-and-mortar retailers threaten not to stock them if the downloads are cheaper.

 

[Owyn_Merrilin]

Because people will still pay that amount

That's the only reason. It's also the reason why physical games are $60 to begin with; people will pay it. It has nothing to do with the cost of development at this point, it's just an arbitrary $10 increase on the already arbitrary cost of a game from last gen, done because people expect things to get more expensive over time.

$60! I hate you guys =D

MW3 is STILL $99.99 for us.

And you guys make twice as much money a year on average than we do. Your point?

 

[Zipa]

Because as most people don't seem to realise that the price is set by the publisher not by the digital platform hence why you rarely see a sale on something like a call of duty title on steam compared to a valve game like l4d2 or portal.

Plus you get asshole retail stores (game i'm looking at you ) who threaten to not stock a game if it is cheaper on digital or even avaiable on digital platforms at all on launch day ( see a lot of multi platform THQ games and steam in in the UK). Which in itself is retarded when the games are often Steamworks required anyway.

 

[ResonanceSD]

Because people will still pay that amount

That's the only reason. It's also the reason why physical games are $60 to begin with; people will pay it. It has nothing to do with the cost of development at this point, it's just an arbitrary $10 increase on the already arbitrary cost of a game from last gen, done because people expect things to get more expensive over time.

$60! I hate you guys =D

MW3 is STILL $99.99 for us.

And you guys make twice as much money a year on average than we do. Your point?

Relative wages aren't really a factor, gaming is a luxury item.

 

[ResonanceSD]

Because they can be.

Also, brick-and-mortar retailers threaten not to stock them if the downloads are cheaper.

Surely that hurts the retailer more than the developer.