Digital Games

Guozhuoyan Zhang

While the previous games were selling, the retailers could take a share of the profit and the console manufacturers would also charge tax for 17% from them. It is clear that there will be very little profit left for publishers and developers. Even like Electronic Arts is taking responsibility for developing and publishing, it can only take 40% from the retail price.

However, digital games are totally different. There will be much more profit for developers after paying the platform tax and service charge (for the console manufacturers). That is why Steam can charge platform tax for 30% above. Nevertheless, developers could also gain more money from it while comparing to physical games’ selling.

The biggest benefit of the digital game is that it will completely put an end to the second-hand transactions. Second-hand games and software have caused lots of serious problems to the manufacturers. However, second-hand software trading was judged as a legal transactions several years ago. Digital games are bounded with consoles and accounts, second-hand transactions are limited by them. On the surface you are buy a game but in fact you are borrowing a game. Even if second-hand digital games were allowed by the console manufacturers, they could only be traded through the official platform, otherwise the manufacturers can charge additional fee from players.

Image Credit:
http://venturebeat.com/2013/03/05/electronic-arts-digital-revenue-will-surpass-physical-game-sales-this-year-infographic/
http://www.playstationlifestyle.net/2015/04/15/digital-games-vs-physical-games-data-shows-interesting-numbers/
http://www.geek.com/games/nintendo-will-always-keep-digital-and-physical-game-prices-the-same-1626433/

Work Cited:
http://www.gamespot.com/forums/games-discussion-1000000/digital-vs-physical-purchases-31174868/
http://www.gamespot.com/forums/gamespot-polls-909396722/poll-digital-vs-physical-games-32226870/