I seem to remember that we have recycled this discussion a couple of times, did we ever get a comparison of digital vs physical cost?
In my head it breaks down to something like this, for the publisher...
Physical
1. Manufactor BD disc with an image on
2. Create and print box material, not art, but fitting it to box etc
3. Ship to distributor (cost covered by distributor?)
4. Ship to retailer (cost covered by retailer?)
5. Profit
6. Retailers discount games to get rid of inventory, since throwing it out means its a loss (I assume retailers do not get stock return deals)
I assume that 1 + 2 is done by supplier of such services and not done inhouse by everybody
Digital
1. Upload image to a server
2. Pay for space on servers, PSN/XBLive
3. Profit
Anybody got a better, more accurate breakdown?
Physical seems its more a one time cost for different steps and that digital is a more recurring cost. And whether one model is cheaper than the other for the publisher is up for discussion I guess.
Like why would Konami keep paying for having PT available on PSN (XBLive?) when they will never ever recoup the cost, since the game never will be made.
Its not the publisher that discounts games that are in the retail end, right? Its the retailer to cut loss on old inventory.
Launch day, discounts most likely are retailers again that carry the cost and not the publisher.
The publisher already sold the game to the distributors and in their view of the world, the prices might even be in sync between physical and digital already.