To me, one of the greatest mysteries in gaming is: Why do we pay so much for digital games on our home consoles? Sometimes, I’ll even go into a GameStop or another video game retailer and see a physical copy of a game selling cheaper than a digital copy. How?!
Nowadays, there’s a 3-6 year development cycle for big titles, and even 2-3 years on indie titles, so I’m not opposed to the full price tag of videos games because the development team should make the money that they deserve. Let’s take a look at where the money goes on each physical game that is sold.
For a $60 physical copy of a game, the money is distributed as such:
- $12 Retailer
- $12 Console Manufacturer
- $36 Game Publisher
That $36 to the publisher is distributed like this:
- Distribution costs (shipping, insurance)
- Manufacturing costs (packaging, manual)
- Marketing costs (advertising, sales)
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