Publishers are Poisoning the Digital Distribution Well

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hal

Dictator
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The physical aspect of a video game - the disc, the box, and the manual - costs pennies. When a consumer buys a digital version of a game, they still have to pay for its development, its advertisement, and its distribution via the publisher. Granted, the online distribution model is cheaper, but not by enough where you would see any real savings. Given all that, I was never really surprised or upset by the fact that online games cost just as much.

The only way to make online-distributed games cheaper is to cut out the middleman publishing companies altogether, and have the developers deal directly with Steam.
The actual materials may not cost much, but there is a HUGE overhead in B&M stores, namely shipping and all of the costs associated with operating multiple physical retail locations.
 

Sir_Brizz

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Feb 3, 2000
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The physical aspect of a video game - the disc, the box, and the manual - costs pennies. When a consumer buys a digital version of a game, they still have to pay for its development, its advertisement, and its distribution via the publisher. Granted, the online distribution model is cheaper, but not by enough where you would see any real savings. Given all that, I was never really surprised or upset by the fact that online games cost just as much.

The only way to make online-distributed games cheaper is to cut out the middleman publishing companies altogether, and have the developers deal directly with Steam.
The problem with that is that at retail, the publisher has already decided what their cut is, what the store's cut will be, what the cost of advertising is and all of that. If they are taking home $30 per copy of the game, then they have decided their game is worth $30 and the rest of the cost pays for those other things.

The same thing can be done online. If you were to, say, sell on Steam where your game's value is $30, you could charge $45 without losing anything ($30 for the game, $13.50 for the store cut, $1.50 for advertising costs).

The real problem for many people, though, is that most games aren't worth $30.
 

StalwartUK

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Feb 12, 2008
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As a consumer I'm not too bothered with how costs are worked out behind the scenes. For me buying a boxed product at a lower price than buying a digital copy with nothing for a higher price simply represents better value for money.

Also a hard copy gives you a degree of security and reassurance that you will be able to play it in the future. Experience has taught me that a CD tends to last longer than a hard disk and a digital distributor (which usually entails DRM) could go bust.
 

Bgood

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Oct 30, 2010
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I guess this is why multiple Digi Distr. platforms challenging Steam may be no bad thing, as each would have to try to undercut the other. I still can't imagine the big publishers wanting to simply drop their Digital distr. prices to what they get currently from comparitively low retail net profit though. Even if retail wasn't a consideration and everything were DD at some point.
 

shoptroll

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Jan 21, 2004
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Speaking of which, are there games sold on USB sticks or something similar these days? After all, CDs and DVDs are dying much like the old floppies have. And putting your CDs/DVDs on flash drives is easy. Well, at least if you're on Linux and know how to use the dd and mount commands.

CDs are probably cheaper than a flash drive. Seriously, you can buy a spindle of blank DVD-Rs for the price of a single flash drive.

Then there's the entire issue of copy protection, not that the USB key couldn't be used as a dongle / authorization device, but still.
 
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I guess this is why multiple Digi Distr. platforms challenging Steam may be no bad thing, as each would have to try to undercut the other. I still can't imagine the big publishers wanting to simply drop their Digital distr. prices to what they get currently from comparitively low retail net profit though. Even if retail wasn't a consideration and everything were DD at some point.

Those Greenman Gaming prices are stomping on Steam's much of the time.
Haven't tried them myself though.
 

Sir_Brizz

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Feb 3, 2000
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I guess this is why multiple Digi Distr. platforms challenging Steam may be no bad thing, as each would have to try to undercut the other. I still can't imagine the big publishers wanting to simply drop their Digital distr. prices to what they get currently from comparitively low retail net profit though. Even if retail wasn't a consideration and everything were DD at some point.
Publishers starting their own distribution platforms is bad for everyone.

Retailers starting competing platforms is real competition.
 

IronMonkey

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Also a hard copy gives you a degree of security and reassurance that you will be able to play it in the future. Experience has taught me that a CD tends to last longer than a hard disk and a digital distributor (which usually entails DRM) could go bust.

Many recent games require an authentication server to allow the install to proceed.

You might have the physical media but you are still relying on the publisher to maintain the authentication server if you want to be able to install the game in ten years time (not an unrealistic prospect - I've recently been playing through Doom, DoomII, mission packs, Quake and mission packs, QIII, Diablo 2, WC II to name but a few)
 

Bgood

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Oct 30, 2010
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Publishers starting their own distribution platforms is bad for everyone.

Retailers starting competing platforms is real competition.

Yes , you make a good point. Well judging from what we've seen of EA's Origin so far.

Still, even there, many believe if EA think their; exclusivist behaviour (ME3 and BF3), pulling games from Steam on spurious grounds(Crysis 2 , Dragon Age 2). Holding back EA games from Steam's big sales (B Storm) and more generally keeping games at full price for longer, is going to work out for them. Well ... they may be disappointed.

Steam has worked out precisely because it wasn't run by Kotick type corporate suits.
 

Alhanalem

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Feb 21, 2002
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If it not on a disc, then I don't buy it.
I guess you'll never play most indie games then. Very few indie developers have the means to get a box in the stores, but with services like Steam, they can sell their game easily. I like boxes and B&M stores too, but there is some good stuff that you just can't find in a B&M store.
 

BITE_ME

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Jun 9, 2004
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Not here any more
The only time you need to download a game, is when it's for a phone.
Heck. Back with some of the first Windows PDA's.
I was given the option too be sent a disk, when I downloaded the software.