Optical discs are dirt cheap. This old answer from Quora says physical media (disc, case, artwork, inserts, etc) accounted for $2-$5 of the cost of a game.
Yes, if you’re selling millions of units. But if you’re buying just one, $2-$5 probably isn’t going to matter to you. Not many people would buy a game at $68 they wouldn’t buy at $70.
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Surely the difference in overheads involved in physical vs digital would mean profits are increasing at a higher rate then sale price
Not really.
Optical discs are dirt cheap. This old answer from Quora says physical media (disc, case, artwork, inserts, etc) accounted for $2-$5 of the cost of a game.
And selling on steam costs 30%
IIRC 30% was also the standard box store cut. Steam just carried it on.
So that’s like a 2.5 - 7% margin on a $70 game… an extra 7% profit margin at the high end is pretty significant
Yes, if you’re selling millions of units. But if you’re buying just one, $2-$5 probably isn’t going to matter to you. Not many people would buy a game at $68 they wouldn’t buy at $70.
Maybe, development cost hasn’t gone down though, not one bit!