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Xbox One digital games won't be cheaper than retail, says Pachter

Xbox One game sales will gradually shift towards digital, but don't expect titles bought through the digital store to be offered cheaper than retail, Wedbush analyst Michael Pachter has said.

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THamm1616d ago

Exactly, this is why getting rid of physical is the #1 priority of pubs. Wanting to sell you a license that is never really yours, especially if you're not connected. This is why MS deserved to lose and this is why you're "cloud" excuse is just a MS marketing ploy. Prove it

Bimkoblerutso1616d ago

Yeah. It's just never been about lowering prices and providing more convenience for consumers. It was all about taking enough rights away from consumers to trap them in a digital ecosystem of glorified software rental.

user55757081616d ago

exactly ^ they wanted complete control.

and to point out in the current gen digital games seem to get price drops long after the retail version of games drop in price.

idk why people thought xbox one digital games would be cheaper. youre not buying straight from the developer. the game is on Microsoft's network and they collect a portion of every sale.

the only time i have seen cheaper digital downloads are from retro games. for example i downloaded legend of dragoon on PSN for $6 yet if i tried to find a copy im paying at least $15+

Cmk01211616d ago

this is such backwards thinking. netflix, itunes,steam, kindle, and ipads all use licensing. you cant give away the media youve bought its tied to an account, with that comes flexibility. people are so scared of everything that theyd rather have to physically loan a disc and await its return, hope its not scratched or lost. hope the friend doesn't procrastinate INSTEAD of cloud sharing and allowing 10 friends to share your entire collection INSTANTLY. it boggles me how gamestop and used game market who robs folks blind with rinky dink trade in credits has tricked the masses into them being the "good guys". Sony fooled everyone, and sheep followed in tow. but remember this is same consumer afraid of the kinect is skynet, get a grip folks you just lost one of the best feautures all so you can have a disc in tray and loan physical media not digital media. REDIC

THamm1616d ago (Edited 1616d ago )

I can still play MGS4 without my PS3 being online. I can still hold it in my hand and say its mine. I can still sell it for whatever I want to someone who's willing to pay to be able to play it on his console without ANY restrictions. It's about games, I don't care about marketing and sharing and crap that can be turned off or changed as per any company wishes. As I remember cloud sharing meant one person online at a time and that wasn't even fully explained just like the rest of the stuff in the box. No matter how they spun it they can't make people buy one. Games are $60 not $20 like movies and $2 mp3s. Competition is good, Value is better and your assets you should be able to see physically. I heard a guy sold the Eiffel tower, wonder how the buyer felt after being told his head was in the "clouds"

Kyosuke_Sanada1616d ago (Edited 1616d ago )

A little late to say that now especially after seeing the sluggish price reduction of most games on both PSN and XBox live.

THamm1616d ago

Price reductions on games that have been out for 5+ years, not games that have been out for 6 months at retail. Games are too expensive to be an all digital, locked format.

Cmk01211616d ago

all digital, reduces shipping cost, packing, cd creation etc, the licensing junk is how steam sells games for dirt cheap. DLC is a direct relation to used game stores cutting into game makers profits, we will continu to pay the bill

Foxgod1616d ago (Edited 1616d ago )

double post, ignore this one.

Foxgod1616d ago

Its kind of logical, because hosting games digitally isnt free.
When you buy a game in stores, part of the money goes to the one who pays the bills of the stone and mortars.

But if you buy it digitally online, part of the money goes to the people that pay the bill for hosting the games.

Cheapest solutions should still be buying a physical game online from an online store, they have lower expenses.

mmj1616d ago

"Its kind of logical, because hosting games digitally isnt free."

Then why are publishers so interested in moving to digital? clearly it's more profitable for them else they'd stick with physical media.

Foxgod1616d ago

Well, Publishers do get more money out of it, as the hosting do is slightly cheaper, but its not a big margin.

However, if you sell a million copy's, it could still be a significant amount of money.
So i suppose in bulk it makes a difference.

mmj1616d ago

In the case of Xbox One the software will be stored on Microsoft's servers which are payed for through subscription to Xbox Live, so the consumer is paying for the servers and not the publishers who no longer have any manufacturing costs.

Publishers keep talking about developers losing their jobs, what about all of the manufacturing and distribution jobs that have been lost through digital?

rainslacker1615d ago

It costs about $3 to manufacture a retail game. There is some other overhead with shipping and what not, then of course you have to give a percentage of the sale to the retailer, said to be anywhere between $2-15.

Each retail copy probably costs the publisher around $10 to sell at retail with all the above combined. It doesn't cost $10 per copy to host a game. I'd be surprised if they have to pay more than $1 per copy sold digitally, if anything at all, since the console maker gets their license fee for the game selling regardless of market.

$10 per copy sold is a huge amount over millions of sales, and there is less risk of losing out on manufacturing costs if the game doesn't sell well at retail. In those cases the games often get returned by the retailer to the distributor, and then get passed onto the bargain bin market, again incurring distribution costs.

mmj1616d ago

Less manufacturing cost, more profit. Simple as.

Cheaper games was just the carrot for the sheep.

Foxgod1616d ago

I prefer a physical copy anway.
Unless its a digital only thing such as Killer Instinct.

Cmk01211616d ago

what is the advantage to having to keep disc in tray, loan physically, time is an issue, disc can be damaged, more cumbersome. digital sharing was 10 times better than physically loaning, Sony fooled folks into thinking gamestop was the good guy. I want my disc its mine, its yours if its digital , just less to worry about.

Captain Qwark 91616d ago

agree with cmk0121. im buying all my games digitally next gen. instant switching, no having to make excuses why i wont loan to friends who typ ruin games because they dont care as much as i do or just never return them. can play on any x1, no trips to the store saves gas and time, no disc needed, and no need to worry about losing it if i move which more than half my gaming collection disappeared last time

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