Kakashi on crack said:
CBanana said:
For the consumer, this should mean lower prices for games. It would definitely mean higher accessibility.
Fix'd.
Sorry if I seem pessimistic, but... More money for developer + same demand (or even slightly less demand) = more profit coming in... So, from a business perspective... If I can sell a digital copy for the same price as a hard disk copy, and sell the same number of said copy. Also note that I'd be paying a small fee for the broadband usage for download compared to the amount needed for all those hazardous chemicals used to manufacture CDs, and wouldn't have to go through a middleman like gamestop or gamecrazy...
Why would I lower prices?
The supply and demand curve can work in a way to make lower prices more profitable. Usually as price decreases, demand increases.
Let's say very simplistically that it costs a publisher $20 to sell a game at retail and $10 to sell a game via download. Also let's say that 10,000 people will buy the game at $60 while 13,000 will buy the game at $50. At a retail store, the game costing $60 makes you ($60-$20)x10,000 or $400,000 while the game costing $50 makes you ($50-$20)x13,000 or $390,000. With direct download the game costing $60 makes you ($60-$10)x10,000 or $500,000 while the game costing $50 makes you ($50-$10)x$13,000 or $520,000.
While it may not seem like a very large difference proportionally, you can still see that when your cost per unit goes down, it's less risky and can sometimes can be more profitable to lower the price per unit.