The one bad thing about digital distribution.

I did some digging, and  found an "old" game (in a box) for $10. It used to retail for $40

With digital distribution, there is no incentive for the seller to cut prices to clear slow moving inventory.

...because his inventory cost are essentially zero. (save for maintaining the server).

Just a random thought.....




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Reply #1 Top
I have no idea what the cost comparisons would be for maintaining phsyical inventory vs. the server farm(s) necessary for digital distribution, but I'd guess you're right that no boxes means lower "stock" costs.

But isn't reducing price a way to increase (or maintain) sales for a product that is past its opening round of popularity? Surely prices will still drop for older games, if perhaps a bit more slowly?
Reply #2 Top
Very true, I was interested in buying SWAT 4. It`s a couple years old now, Sierra want`s almost $40 for the gold edition download. No way, I think the games on steam are $5 to $10 dollars over priced as well.
Reply #3 Top
I agree that it will slow down price drops. But Stardock has already lowered the price of Dread Lords since its release.

A few good things about digital distribution: I think it will make games readily available for longer and I can play a game right now, without having to go to a store to get it.
Reply #4 Top
without having to go to a store to get it


Good point, and better than it used to be: If you live in the rural US and pay for your own car and gas, this can be a real cost factor now. I've known folks who would need a 30-mile (or more) round trip between their house and a store that stocks PC games.

Broadband net access is (for the moment, at least) a fixed cost, so a trip to the digital store is already paid for. A trip to the mall could mean 5 or 10 bucks you wouldn't otherwise have spent for the month.
Reply #5 Top
Another bonus with (good) digital distribution systems is that you don't ever lose your disc, and if you need to reinstall, it's just a download away.

Last weekend I participated in the 'Great Computer Meltdown of 2008' and had to restore my laptop to factory settings from my dedicated partition. Now, I'm an exchange student in another hemisphere from home right now, so guess what? All my games that were disc-installed are out of my reach until I get back home. (That means no UT until I get home, because I'm not going to re-buy it through Impulse when I have it (purchased twice, because I thought I lost my original discs anyway, heh) at home.

However, all my Stardock and other Total Gaming games are back in my possession, with a bit of download time, even though I'm 9.000 kilometers from home. :CONGRAT: