Physical vs. Digital

[Atmos Duality]

Physical games are simple: If it doesn't work, there are laws in my country that let me get my money back.
I need only concern myself with the merits of the game in question.

For digital distribution, Convenience, Availability and Trust are the three things I weigh when considering any digital distribution service.
-Convenience measures how many hoops I have to jump through to use the service routinely.
-Availability measures how the service performs in operation (slow downloads, frequency of downtime)
-Trust is an estimation of both transaction security (can I trust these people with my credit/debit information?) and what requirements I need to meet to play the game I paid for (DRM? Always online? If so, is it necessary by the game's nature?)

Cons:
>Price does not change with supply and demand

False.
Digital distribution (downloads and streaming) are a service form of distribution for media or information based goods.

And services follow Supply and Demand Laws just as regular goods do.
http://www.investopedia.com/university/economics/economics3.asp

Demand refers to how much (quantity) of a product or service is desired by buyers.

That said, I think I understand what you were aiming for. Video games are Media/Information goods and would normally fall under the Natural Monopoly type, which means they only compete with other Natural Monopoly goods.
(EA is the only company that produces Battlefield. Activision produces CoD4.x. Both Natural Monopoly goods, but they compete with each other in the broader market)

But in practice, price fixing in the broader market only applies if the game is provided by a service and that service is the sole provider of that game and that game's competition. Nobody has attained that position in the video game market so it doesn't apply.
(or a Market Cartel, which also doesn't apply right now)

 

[Andante]

You forgot one HUGE physical CON

When reinstalling or install on new machine, you need to download a crack (which sometimes doesn't exist) and can't play online if you lose the stupid tiny ass manual with your CD Key.

 

[Auberon]

Physical copy, there's something about holding it yourself... plus you don't need to spend whole day downloading it from Steam, when you can just insert it in the drive and installl from there.

 

[BarkBarker]

A game with a good box cover makes me feel warm inside, like the developer didn't just possibly make a game great, they sold it great as well.

 

[DSK-]

Physical. I don't have to wait for 2/3 hours to download a game. I find out my disks, plonk them in the drive and install. I still have my first ever game, with both disks, purchased in 1997. Good times.

Also, looking at and smelling a freshly printed manual is something I miss when having to download a game from Steam, although I will say that the Steam deals do sometimes justify themselves.

 

[SonOfVoorhees]

Digital is good if its cheap, and i own it. If Steam dies, then i want those games playable as i own them. If not, then its bullshit.

In the old days i loved buying games, there was something nice about reading the booklet on the way home. Thats something thats lost. Its almost impossible to get a proper booklet with a game nowdays. Maybe its my age and nostalgia but digital download loses a lot of fun.

 

[Arnoxthe1]

Cons:
>takes up space

By themselves, they hardly take any space. Also, some (like me) might consider this a pro as they like to look at a physical collection. Looks nice.

I can definitely see the pros of digital but honestly, I'll always pay more for a physical copy even if it's twice as much as the digital version.

 

[Andante]

Digital is good if its cheap, and i own it. If Steam dies, then i want those games playable as i own them. If not, then its bullshit.

In the old days i loved buying games, there was something nice about reading the booklet on the way home. Thats something thats lost. Its almost impossible to get a proper booklet with a game nowdays. Maybe its my age and nostalgia but digital download loses a lot of fun.

The chance of steam dying is just as good of a chance as the world's infrastructure collapsing, by then good luck playing with your physical with no electricity.

 

[SonOfVoorhees]

Digital is good if its cheap, and i own it. If Steam dies, then i want those games playable as i own them. If not, then its bullshit.

In the old days i loved buying games, there was something nice about reading the booklet on the way home. Thats something thats lost. Its almost impossible to get a proper booklet with a game nowdays. Maybe its my age and nostalgia but digital download loses a lot of fun.

The chance of steam dying is just as good of a chance as the world's infrastructure collapsing, by then good luck playing with your physical with no electricity.

Did you not grasp the point i was making? Dont give a crap about steam dying or living or whatever. I just want to own the game i bought, not, im renting it dependent on the place i bought it stays open. When i buy something its mines, it shouldnt be dependent on any other companies to play it. If Steam did die (an i doubt it will) i still should be able to play all the games i bought. Wouldnt you agree?

But as much as i love physical games. Digital wins through ease, choice, price and not having to leave the house. Now physical games have a crap booklet, it makes physical version more worthless.

 

[Elberik]

I think I understand what you were aiming for. Video games are Media/Information goods and would normally fall under the Natural Monopoly type, which means they only compete with other Natural Monopoly goods.
(EA is the only company that produces Battlefield. Activision produces CoD4.x. Both Natural Monopoly goods, but they compete with each other in the broader market)

But in practice, price fixing in the broader market only applies if the game is provided by a service and that service is the sole provider of that game and that game's competition. Nobody has attained that position in the video game market so it doesn't apply.
(or a Market Cartel, which also doesn't apply right now)

What I mean is that digital games don't take up space therefore there is no need to drop the price in order to move units. A physical copy of Duke Nukem Forever is about $5 while a digital download is still $20 until some arbitrary amount of time passes. Basically with digital the buyer is at the mercy of the seller.

 

[Elberik]

You forgot one HUGE physical CON

When reinstalling or install on new machine, you need to download a crack (which sometimes doesn't exist) and can't play online if you lose the stupid tiny ass manual with your CD Key.

I would see that as a personal problem with you. Once you break the seal that game is your responsibility. Also, online passcodes are an issue regardless of how you attain the game.

 

[Elberik]

another advantage of digital over physical which is never mentioned are the environmental issues. there are no environmental costs that ou get with physical media. to get that physical game in your dvd drive you have all the mining and refining then the production of the plsatics involved then the transport often internationally to reach the store not to mention actually getting to the store and back. there is also the environmental cost when it comes to the manufacture with the manual and/or the dvd cover.

You're forgetting about all the raw materials needed to manufacture the PC components that gamers go through as well as the heat produced by PCs which causes you to leave the AC on thereby using more electricity which in turn burns more coal or gas or produces more nuclear waste, or what was the point of your post?

 

[DanielBrown]

I used to be all about physical copies until recently, when I returned to PC gaming due to the shitload of bundles that exist out there. Now I fucking love digital copies as long as I can redeem them on Steam.

I still feel that physical outweigh digital though. I like having something to show for my money. Owning a digital copy doesn't do anything to me and it could be lost just as easily as it was gotten. If Steam shuts down for whatever reason I'd currently lose a hundred games.... Definetly think digital games should be way cheaper than physical though. Someone explained to me once why that was, but I have completely forgotten why.

 

[Elberik]

Cons:
>takes up space

By themselves, they hardly take any space. Also, some (like me) might consider this a pro as they like to look at a physical collection. Looks nice.

I can definitely see the pros of digital but honestly, I'll always pay more for a physical copy even if it's twice as much as the digital version.

I'm assuming you've never had to move

 

[gigastar]

Cons:
>takes up space

I sense a disturbance in the force.

Srsly, having a large collection is the best thing, ever.

Not when you have ~800 books in the household and its time to move house.

 

[Atmos Duality]

What I mean is that digital games don't take up space therefore there is no need to drop the price in order to move units.

Correct me if I'm wrong, but by "take up space" you must mean that digital games aren't subject to the First Sale Doctrine, or resale ("Used Games"). I say this because it's the only other force acting on the physical market that's defined by physical media in the context of your comparison.

Which still isn't the same as saying "Digital game prices aren't subject to Supply and Demand".

Basically with digital the buyer is at the mercy of the seller.

Checking on Steam, I find Aliens: Colonial Marines is 20 bucks and that game isn't even a year old.
But it has such a bad reputation that its price tanked due to low demand.
For comparison, Borderlands 2 (regular, not GOTY) is going for 30 USD despite being ~1 year since release.
It has a good reputation due to its popularity and reception.

The asking prices show that there are clear differences in Demand for those two games and Supply's response to match it.

EDIT:

I've always been paranoid of any product I buy that is 100% ethereal. Or ephemeral. Not sure which applies better.

Intangible?

 

[FrozenLaughs]

I've always been paranoid of any product I buy that is 100% ethereal. Or ephemeral. Not sure which applies better.

 

[Artina89]

I personally prefer to have a physical copy of the game, I just really like going into a store and purchasing it, or coming home from work and finding it waiting for me on the mat, ready to play. Also, I am a sucker for box art and special editions.