Why aren't digital copies cheaper?

#21IroncondorzPosted 9/5/2013 5:43:31 PM
It's all about the publishers + brick and mortar stores. Stores can't compete with digital downloads, so they use their buying power to force price parity. This extends past just video games too. Don't want to play ball Sony or MS? Well we won't sell your TVs, Music, Computers, Phones, etc...

This is how Walmart keeps it's prices low and still profits. They say to manufacturers "Hey you'll take what we want to give you for your stuff or you won't be selling anything in our stores." They agree because they have to. Not being in Walmart is suicide for a large manufacturer (keep in mind most brands are owned by large companies with 100s of products).

That is why all digital is coming like it or not.
#22TheRealPhattyJPosted 9/5/2013 5:53:20 PM
SyphonFilterAddict posted...
Great question and we never get a good answer.


Sure we have, it's not like this is a new business practice. It started with the advent of the Internet and online shopping, and just about every product that you can buy directly is the same way. It's so retailers will continue to carry your product in stores. Why would a store carry a product that someone can just go straight to the manufacturer and buy for the same price that said store owner can? They wouldn't, so manufacturers long ago started signing contracts that they wouldn't sell directly to the consumer for less than MSRP.
#23CRASS5000Posted 9/5/2013 5:55:17 PM
....because you were never paying for the disc.
---
GT. CRASS RAT GT2. LBC iGoNegative
*Official Topic Killer*
#24elchris79Posted 9/5/2013 6:12:54 PM
TheRealPhattyJ posted...
SyphonFilterAddict posted...
Great question and we never get a good answer.


Sure we have, it's not like this is a new business practice. It started with the advent of the Internet and online shopping, and just about every product that you can buy directly is the same way. It's so retailers will continue to carry your product in stores. Why would a store carry a product that someone can just go straight to the manufacturer and buy for the same price that said store owner can? They wouldn't, so manufacturers long ago started signing contracts that they wouldn't sell directly to the consumer for less than MSRP.


Totally disagree. Are electronic books more expensive than paperbacks? Rental movies are the same price as physical rentals in the UK. Music albums have been cheaper than physical copies for years.

Fact is, people prefer something tactile. And a lot are willing to pay more to have that. Even though I don't read game manuals much anymore, I still like having the option of doing so.
#25Devil_wings00Posted 9/5/2013 6:20:01 PM
Retailers hold a lot of power and they would flip there collective s*** if digital copies were far cheaper then retail. It's not hard for retailers just to threaten to not stock games unless the digital prices are on parity with retail and Sony/MS pretty much have to play ball because most games are still sold through retail. Pretty sure something similar happened on PC a few years back and that's why we still have 50-60 dollar games on steam.
---
3570k @ 1.260v - 4.6Ghz, GTX 580 @ 980/2106, ASUS Sabertooth z77, 8GB G.Skill Sniper 1600MHZ, Intel 335 SSD (boot).
#26SirLemontPosted 9/5/2013 6:24:04 PM
Because money.
#27ZeeDoggePosted 9/5/2013 6:26:31 PM
elchris79 posted...
TheRealPhattyJ posted...
SyphonFilterAddict posted...
Great question and we never get a good answer.


Sure we have, it's not like this is a new business practice. It started with the advent of the Internet and online shopping, and just about every product that you can buy directly is the same way. It's so retailers will continue to carry your product in stores. Why would a store carry a product that someone can just go straight to the manufacturer and buy for the same price that said store owner can? They wouldn't, so manufacturers long ago started signing contracts that they wouldn't sell directly to the consumer for less than MSRP.


Totally disagree. Are electronic books more expensive than paperbacks? Rental movies are the same price as physical rentals in the UK. Music albums have been cheaper than physical copies for years.

Fact is, people prefer something tactile. And a lot are willing to pay more to have that. Even though I don't read game manuals much anymore, I still like having the option of doing so.


Um, music stores AND book stores have been dying for years BECAUSE of digital sales. I don't think I've been in either in like 3 years.
---
lol assault rifles are machine guns.... d'oh! :P btw so are submgs and anything that has automatic fire.
~squiggy9996999
#28ngoetzPosted 9/5/2013 7:35:07 PM
Cashew posted...
This is exactly what microsoft was going for until all the cry babies ruined it.. Wtf? Is this a troll topic? 4/10


Microsoft has no one to blame for this but themselves. They did such a poor job marketing this that they ruined it, not the people complaining. If they would have stated up front all the benefits then there wouldn't have been so much backlash.

When I first heard Microsoft talk about this it seamed like a DRM nightmare. Only after the backlash did they mention that you could still trade games (very limitedly), as well as share games with family and friends. By the time they started talking about the positive features, it was already too late. Plus Microsoft doesn't exactly have a good reputation when it comes to DRM. They are way more restrictive then the PS3, so what were people suppose to think when they announced the new system without going into more detail of the features?

If they would have marketed it better, had a better attitude words their customers concerns, and didn't already have a bad reputation with DRM then they might have had a better reception.

You can blame people all you want for complaining, but Microsoft is solely responsible for screwing up their new model.
#29Xeeh_BitzPosted 9/5/2013 8:15:14 PM
Because drones suck it up and buy them anyway, why would they lower the price if people buy them?
---
Best Windows ever, Windows 8!
#30capnhowdy18Posted 9/5/2013 8:25:05 PM
A couple factors. The actual disc and shipping is actually very small, I think it makes up like $4 dollars of the total cost. Everything else is still the same except the retailers margin, which usually comes out $15. This is is an area where Digital distribution has some some wiggle room. The servers, and bandwidth need aren't exactly trivial so we can't ignore that cost as well.

Lets go back to that wiggle room. Really if we make the cost of hosting the file, and physical cost of a disc a wash. Really the digital retailers only area to cut down cost is at that $15 dollar mark. MS/Sony/Valve really could say only take a $10 cut instead of $15. This would make games cheaper. The problem, at least for MS and Sony, is this would piss off all the retailers who they are still reliant on to sell their physical systems, and disc based games where most of the sales still come from.