this post was submitted on 14 Aug 2023
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Surely the difference in overheads involved in physical vs digital would mean profits are increasing at a higher rate then sale price
Maybe, development cost hasn't gone down though, not one bit!
Not really.
Optical discs are dirt cheap. This old answer from Quora says physical media (disc, case, artwork, inserts, etc) accounted for $2-$5 of the cost of a game.
And selling on steam costs 30%
IIRC 30% was also the standard box store cut. Steam just carried it on.
So that's like a 2.5 - 7% margin on a $70 game.. an extra 7% profit margin at the high end is pretty significant
Yes, if you're selling millions of units. But if you're buying just one, $2-$5 probably isn't going to matter to you. Not many people would buy a game at $68 they wouldn't buy at $70.