Soo, why do console version of computer games cost more?

[himemiya1650]

Because comps have more competitors through digital distribution, so they need to fight for business. Meanwhile where I'm at Best Buy, Future Shop, Game Stop, Walmart, etc are all comfy with each other and lack price wars over videogames.

 

[TheRobotandtheBeast]

12 percent of console game price goes to the console maufacturer but theres no-one to pay the 12 percent to on Pc so you get it cheaper.

 

[RhombusHatesYou]

Licencing fees are where the consol developers make the vast majority of their income from the system not the actual sale of it.

Correct. During the first few years of the average console's product life the manufacturer takes a loss on selling the console itself and makes up for it via income from licencing and other related fees. Keeping the cost of the console itself artifically low (relatively speaking) allows for deeper market penetration which in turn means more consumer demand for software (where the licenceing fees come into play). It's a classic example of the Loss Leader sales model.

Remove the licencing fee from the equation and while the consumer may get cheaper games it will result in more expensive consoles (one of console's big advantages), thus lessening market penetration and the chances for eventual profitably of the platform, which in turn lessens demand for software, which sees money migrate to other parts of the industry if not out of it entirely.

 

[LostFable]

I like to think that it's because you can't trade back in the majority of pc games while you can trade in any console game