@welshbloke, If you go pure digital, you remove the "retained value" of purchased game, which help you buy that "brand new released game". Without second hand market, sales # of new game will go down, especially those new IP, and/or second class AA games.
The reason there are lots of cars in US is because they have thriving second hand car market. Without it, I am pretty sure that yearly new car purchase will go down, NOT go up.
For digital distribution, game price need to go down, to minimize customess "loss". IF new game is $50 for retail, with resell value of $15, digital distribution price need to be $35 ($50 - $15) or less, so the # of sales remain the same, or even increase.
For publisher, if we assume 30% retail associated cost vs MSRP, then selling DD game at $35 didn't reduce their profit.
"They need to model themselves more on the Video market where stores cannot resell full products." Are you talking about Video (VHS/DVD etc)? Why this happen in video market ? Is it because of law, or is it because the product itself is already very cheap, so second hand market is not as profitable as video games ?
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If you go pure digital, you remove the "retained value" of purchased game, which help you buy that "brand new released game". Without second hand market, sales # of new game will go down, especially those new IP, and/or second class AA games.
The reason there are lots of cars in US is because they have thriving second hand car market. Without it, I am pretty sure that yearly new car purchase will go down, NOT go up.
For digital distribution, game price need to go down, to minimize customess "loss". IF new game is $50 for retail, with resell value of $15, digital distribution price need to be $35 ($50 - $15) or less, so the # of sales remain the same, or even increase.
For publisher, if we assume 30% retail associated cost vs MSRP, then selling DD game at $35 didn't reduce their profit.
"They need to model themselves more on the Video market where stores cannot resell full products."
Are you talking about Video (VHS/DVD etc)?
Why this happen in video market ? Is it because of law, or is it because the product itself is already very cheap, so second hand market is not as profitable as video games ?