Boss Rush Banter: Are We Paying too much for Digital Games?

Boss Rush Network

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)
  • Development…

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