Why do digital versions of games cost more than physical?

Nick writes: "One of the great mysteries of modern gaming is why do digital versions of games consistently cost more than physical ones?"

[IRetrouk]

I remember when companies were talking up digital downloads, using the line "it will be cheaper than retail because we dont have to package the code or ship anything!!".

They charge so much because they can, they put the games up at those prices and we as a group bought into them at those prices, it's our own fault.

[darthv72]

Maybe its only for those who buy right when they come out as I always wait a few weeks and get them for less. But I do remember what you said. I was expecting digital games to be at least 10% less than their retail version, but now many arent even getting retail releases. unless it is done by one of those repro companies like LRG or strictly limited.

[RosweeSon]

Yeah I don’t think I’ve ever day1 gone digital as it’s always full RRP few weeks later massively cheaper

[IRetrouk]

Oh yeah, if you can wait and be a bit savvy it can deff work out cheaper, but as a rule, day 1 releases digital are usually 5 to 10 pounds dearer than their physical retail versions, should deff be the other way around.
I dont mind digital, just dont like how much control it gives over pricing etc.

[Rebel_Scum]

5 to 10 pounds...you're lucky. A new PS4 game is $100 digital and $69 retail in Australia. Add $10 to those figures for New Zealand prices.

As Atom666 posted below. They aren't cheaper on release mainly because they don't want to undercut retail.

I wonder if part of the reason is because they feel they still need retail to help move consoles?

[IRetrouk]

It can be more or less, but usually falls within those prices, depends really on the game, retail is deff one of the reasons though, no doubt there.

[Skuletor]

@Rebel_Scum

NZ prices for Doom Eternal for example, $119.95 digital on PS4, Retail around $99-120 and that's just the standard version. We get it worse than Aus, even taking exchange rates in account.

[1nsomniac]

@IRetroUK I’m glad I’m not the only one who remembers that being their exact words.

[IRetrouk]

One of the main things that stopped me going full digital was the prices, great when theres a sale but if you buy day 1 you are paying more, much rather get the disc, even if it dont mean much these days lol.

[rainslacker]

Generally, digital prices stay higher longer than physical.

It's not really a great mystery, it's just that publishers set the prices, while retail will eventually come to a point where they have to liquidate stock, or just general market demand isnt as high, so the price goes down. With digital, the publisher can usually make more selling it for more, but physical has production, warehousing, and distribution costs which are paid up front.

As far as why they're the same price day one. Part of that is trying to keep retail happy, and the rest is because the consumer has shown theyll buy it at that price. If the consumer didnt pay as much, then the price would have been adjusted to what the market will bear

[IRetrouk]

👆👌

[Orionsangel]

I remember when MS was testing digital downloads on consoles with Arcade Live on Xbox 360. Then slowly but surely triple AAA titles for digital download started sneaking on to XBL. It was such a big deal back then that news sites would announce, Gears 2 now available for digital download! It had a wow factor to it.

[spicelicka]

Exactly, and let's not forget that they can just remove the original versions and keep re-bundling them at full price. Hell I was looking a re-bundle example but even the launch edition of Infinite warfare is $60 LOL.

https://www.microsoft.com/e...

[InKnight7s]

Nothing more pathetic than COD fans they spread the cancer of DLCs and made it acceptable + EA, Bathesd fans whom responsible to support games that released with tons of glitches and bugs and Gigas of patches first day and onwards.

[medman]

Hey, don't blame me man....I have yet to buy a digital game. Not a single one. I have to admit though, that will change with the ps5/xbox series x generation, because I believe we are now at a point where the console tech makes downloading games much easier/quicker and much more convenient....especially when considering the ability to keep multiple games open and resume where you left off with what they are saying will be negligible loading times. I'm not exactly thrilled about it though.....

[littletad]

It's actually the reverse for me. I haven't bought a single digital game at full price in three years. There are sales every month and I usually just put the games I want on a wishlist and check periodically. I got resident evil 7 for ten bucks two months ago due to a play anywhere sale on xbox store. Metro Redux was 6 bucks during the winter holiday sale on both psn and xbox too. Gamestop or Target had both of those games at 30 regular price. (except of course not during the holiday sales)

[rainslacker]

I've never brought a digital game at full price, with the exception of some of the wow expansions because that's what they sell in the box, and there is no resale value anyways.

I like the cheap digital games that come up sometimes, so $5-10 is usually my limit. Only exception was drive club and its.season pass, which was on sale digitally, but cost more than $10

[mark_parch]

only game I got at full price in the last 18 months was sekiro. Most the games I want to play end up on gamepass at some point and if it's looking like a game I want isn't going on gamepass I just get it in a sale with my rewards points

[CorndogBurglar]

I'm pretty sure they're talking about buying games day one, or when they are at full price. Not buying a digital game that is 3 years old...

[spicelicka]

Well the second hand market is always cheaper and only possible with physical. You can also rent games, and sign them out from many libraries.

The argument applies more towards the average cost of base games when they're not on sale. There's usually a consistent decrease in price for physical games as they age, whereas digital stays stagnant or the original versions get removed and re-bundled for full price.

At the end of the day having both options is the best scenario. Physical media is what's under threat here, digital is staying regardless. With digital-only looking more and more likely, they need to prove that gamers are getting the same or better benefits in every way.

[CaptainCook]

Digital games is actually cheaper than Physical discs when on sale since the digital games usually includes all the DLCs.
Also, some 3rd party and first Party Xbox One Digital games includes the PC version i.e. Play Anywhere titles.

[rainslacker]

Digital versions that include dlc, season passes, or the same things that come in premium or collectors editions tend to stay higher priced on stores longer than the base retail versions.

[UltraNova]

Exactly.

[CorndogBurglar]

Digital games don't usually include the DLC. Where are you getting that from? They sell the same versions as physical. They sell standard versions with no DLC, or versions with DLC or a season pass for more.

[Neonridr]

do they cost more? I don't see that..

[CaptainOmega]

“I don’t see that so they don’t cost more”

Great argument.

[Neonridr]

I'm saying that at any digital storefront I use for my consoles (PSN, Switch Online) digital games cost the same as retail. I mean once the games are older, it's possible that the pricing changes a little. But here in Canada, a brand new PS4 game costs $79.99 physical and $79.99 digital. Likewise with Switch releases.

so explain your point again?

[DarkZane]

That's because in USA and Canada, digital and physical is exactly the same price at release.

Digital is only more expensive in Europe, Australia and other countries.

[EthanMT]

Actually they aren't wrong. In Canada there is no difference in price. On PSN there's no tax on digital so it's actually cheaper to buy digital here in that sense. I also see games go on sale far more often digitally than physically, especially on PlayStation. I stopped buying physical 3 years ago out of cost and convenience. It's where gaming is heading, may as well jump on board.

[Knushwood Butt]

For new PSN releases in Japan, digital is almost always more expensive than retail.

I think the only 2 games I bought day 1 digital were the non-full price titles Tetris Effect and Concrete Genie, and I think both came with digital soundtracks that the retail versions didn't.

When it comes to sales though, I buy a lot of digital games. Just got Dariusburst Chronicle Saviours in a digital sale and very happy with it.

Was thinking of getting LOU2 digital but pre-ordered the steelbook physical version instead.

[Ricegum]

Neon

Yeah they always cost more, often substantially.

Here's just an example of digital vs physical:

https://www.amazon.co.uk/dp...

https://store.nintendo.co.u...

[Neonridr]

I mean I'm using my personal experiences as my basis for measurement. I can't exactly go by European pricing when I am in Canada. I mean if we are talking about games that have been out for some time, then sure.. pricing is going to vary. But it's not like a brand new title costs more digitally than it does physically.

[Terry_B]

Only on consoles..lol.

[TheEnigma313]

Well on pc, physical barely exist these days.

[Krew_92]

I would say physical is completely dead on PC. Very few niche games even bother with physical releases. It's a waste of packaging when you buy a box only for it to have a Steam code. Only time I see physical modern PC games are in bargain bin sections that contain those slot machine, spot the difference, hidden object finder, and tycoon games.

Even recently, to give an example, I bought Azur Lane: Crosswave limited edition. It came with a steel game case... and a Steam code.

[MadLad]

Facts.

@theenigma

But that's saying an entirely digital platform actually has the best deals. It really is a console issue.

[Giblet_Head]

True. I rarely if ever buy a new game for over $48 at release. Picked up Modern Warfare recently during a sale on GamesPlanet. Cost me $38.

https://isthereanydeal.com/...

[Fishy Fingers]

Because on console you have one store, they have you by the balls. Want convience? Pay us what we want.

[TheEnigma313]

or just not by and get it cheaper on physical

[MadLad]

Or even cheaper, digitally, on PC ...

[Atom666]

This article misses a lot of points. It mostly comes back to retail in the end. Ubisoft addressed it pretty thoroughly a few years back. They're more concerned with selling through copies at retail (at least inititally), and don't react as much with digital pricing. Essentially, when Assassins Creed is filling the shelves, they don't want to discourage retail sales by undercutting.

https://www.gamespot.com/ar...

If you go back to the start of this gen, Sony made similar comments: "First of all, we want to support a healthy retail channel, so it's not in our interest to go and seriously undermine retail."

https://www.eurogamer.net/a...

To some of the article's other points, the digital stores are a bit of a monopoly. However, you still do have MS and Nintendo selling digital codes through Amazon and other not-so-sketchy retail markets, unlike what the author implied. They may soon follow Sony and remove that option, but for now it remains.

As we look to the end of this gen, digital is approaching 50% of the sales for many games. As digital takes over more and more, we should expect the deals we already see now only continue to be more prevalent. By and large, I do see more and more digital sales and discounts on console this gen.

[RazzerRedux]

Exactly right. Essentially, the existence of physical on store shelves prevents publishers from lowering prices on digital. Digital and physical are, in essence, in competition with each other with physical being the driver. Obviously, physical media represents a much larger investment in shipping, packaging, and store purchasing discounts than digital. Publishers have to move that physical stock. They are not going to move it with the existence of a cheap digital version.

[lazyboyblue]

Didn't gamestop and Amazon both say they'd not stock titles by publishers that undercut or even matched prices of physical media with digital games?

I.e if Sony sold last of us 2 for £25 digital, Amazon and gamestop wouldn't stock the disc version.

[dragongod64]

Online sales are on the rise ebay & best buy are out saling gamestop.

[CaptainCook]

"Sony to stop selling PS4 download codes through retailers, including GameStop"

https://www.polygon.com/201...

[Tross]

Doesn't that have something to do with physical retailers not wanting to be undercut? In other words, digital prices should be cheaper, but can't be any cheaper than physical games because shady business. There are far worse things to come out of shady business, so whatever. I do like having physical copies of games whenever possible, so I'm all for them sticking around even if I disagree with some of the means to help keep them viable.

[william_cade]

I haven't paid more than 30 usd for a digital game.

[BillyG0AT]

because for everyone who won't pay full $60 price for digital. There's a thousand twats that will

Also, I just paid £2.50 for all 3 stalker games. Not exactly pertinent to the story. I'm just happy

[MadLad]

Stalker was the first series I purchased when I built my first PC lol. Great franchise.

[Iamnothuman12]

No secondhand market.

[TheEnigma313]

and this is why I buy physical when i can. The last game i bought digital instead of physical was Detroit because i got it for $15 cheaper.

[gorillatactics]

Who cares. Games have never been cheaper. It's called inflation.

[annoyedgamer]

Because they can charge more. "Muh lower cost" argument was PR speak directed to people who arent too sharp.

[Traecy]

I usually see it the other way around. Though sometimes physical copies go on sale & digital copies prices stay the same but I've seen PSN sales every week & some of those digital games are less than the physical. Both go up & down.

[WickedLester]

They dont if you wait for flash sales and other discounts on PSN and the MS Store. I just bought days gone two days ago for 19.99. I got Resident Evil 7 for 7.99 a few weeks back. The discounts are there if you're just patient.

[Smokehouse]

People buy them. That’s the only reason. When Blu-ray sales started taking a hit they started including the digital version. People buy movies now for a 4K Blu-ray, regular Blu-ray and digital code for a 35 dollar combo. If people stopped buying digital the costs would drop, the problem is the opposite is true. People will buy the 99 dollar digital version even though the physical version comes with collectibles. Which is fine, that’s just the answer. They have absolutely no reason to drop the price.

[dragongod64]

I find a lot of the games i play 40% off or more, you just need to wait. Or just wait until black Friday.

[AK91]

Here in Australia (or at least where I live) both new physical and digital games are the same price it's why I stopped getting physical copies, that being said both have discounts where games can always be cheaper.

[Chumdiddy]

Because you'll buy it

[MadLad]

Because greed runs the world.

That said, PC is basically all digital, has the most store fronts, and offers the best deals, and more often. It's a console issue, if anything.

[CBaoth]

It's a transitional phase, unlike the one its big brother endured. Console digital will eventually get there.

[BeRich233]

You get 2 copies with digital on xbox, so game share with your friend and alternate paying for games.

[Zjet]

Because people abuse it, and invent terms like 'game sharing' which don't actually exist and are actually just loopholes so you and your friends can get cheaper games.

[DOOMZ]

G R E E D ! 💯

[chrisoadamson]

Every digital game is 50% off if your on xbox .. just set up game sharing (home xbox on another console) with one of your mates . It's great!! 100% digital library for me

[sprinterboy]

New releases our expensive, but after a month they our less than used game stores, and about the same as amazon or other retailers.
I personally wait for sales like last Halloween to buy horror games ie, RE2 digital £14.99 (£20 @retail or & 17.99 CEX) or Xmas sales etc during the year they switch the games they have on sale, so sometimes it's just a waiting game for a month or so.
I've been digital all gen tbh 90% of the time, saved lots of money and I'm also never tempted to trade in the games I normally regret, by having to rebuy again (bloodborne) like other gens.

[JD10]

I always made the assumption that they charge more for digital because the PS4 and Xbox One allow you to game share. In my case I always buy the game on my sons gamertag but we have my console set as his main console for both the PS4 and Xbox. This effectively means that we are getting two games for that price as we can both play it at the same time.

[CorndogBurglar]

Digital games aren't more expensive in the U.S. Not at launch. They are the same price as physical. (Not taking into account places that might be running sales.)

But after a few months, prices tend to change. Game prices get cut on both digital and physical sometimes. But retail stores put stuff on sale to move stock. But then again, digital games go on sale way more often, and usually for a better price. It all depends on what the publishers want their game to be sold at. (For instance, Spider-Man PS4 was dropped to $40 both physical and digital, as its regular price just a few months after it launched. Yet, Diablo 3 was still a full $60 game just a year or two or ago.)

So this conversation really only matters if we're talking about launch prices or the prices when the games are full price. Anything after that is kind of the wild west and anyone can basically charge what they want.

[stefd75]

I never buy digital games at all, not even in a sale, physical all the way.

[Max_Eckhardt]

If streaming gets a foothold we’re all f**ked!

[jamietgs]

Because if they were cheaper than in store, the stores would get p*ssed and probably not stock the physical versions for that particular publisher any more. think about when Game Pass came out, how many retailers stated that they would no longer be stocking Xbox games in protest. Same thing homies. Same darn thing.

[BlaqMagiq1]

I've been buying physical for lesser prices than digital for years. Not to mention the physical bonuses I get for preordering. I'd be a fool to go all digital.

Physical>Digital now and forever.

[Germaximus]

Stupid question. They don't.

If the question was "why do they cost the same?" then that would make far more sense.

[dcbronco]

Greed

[Father__Merrin]

It's a diagrace. Retail 49.99 digital 59.99. Digital haz zero packaging and printing costs. Zero wholesaler and shop cuts yet its 59.99?

A retail game when all is said and done is possibly 29.99 to the publisher etc. The digital price should be what the direct sale is ie 29.99 all the extras on top they are marking it up

[Smellsforfree]

This article is stupid and covers all the same topics that have been discussed to death since early in the PS3 and 360 days. The price of an item may reflect the distribution costs but it doesn't necessarily follow it. Price is set by demand. Obviously there is enough demand for digital download to justify the price. Top that off with store exclusivity and it is no wonder the prices are what they are. Nothing about any of this has changed in 15 years and this article brings no new ideas to the table.

[TargusX]

Because the younger generation are nieve and don't understand value or owning things.

[Rashers]

i get single player physical discs. Multiplayer digital downloads. saves me buying 2 copies to play with the kids as we use account share.