Fenrir said:
The reality that PSN digital sales are by and large beaten out by physical sale prices flies in the face of this argument if you ask me. The fact that they don't need to clear shelf space is an incentive to be patient and not risk lower "pure profit" levels than they can otherwise get is clear incentive to not lower the price as it doesn't cost anything additional to stock.
They are not over time. The asymptotic low point for digital sales is lower than the asymptotic low price for physical sales, because the physical sales carry costs that prevent companies from routinely buying inventory that reaches the price of digital sales. You are just wrong. You are not going to see physical sales for $5 for new games. Sony does not care about used sales. Nor should they. It does not benefit them. Even given that the profit generating low price of a new digital game is lower than a used game.
The reason God of War Ragnarok is cheaper as a physical sale on Amazon for a significant proportion of time out of the year is because Amazon has costs of buying and inventorying God of War Ragnarok and the cost of inventorying God of War Ragnarok for Playstation is nothing.
Playstation also does not set pricing on third party sales. The primary competition for games on a platform is not God of War on PSN vs God of War on Amazon. It's God of War vs. GTA VI. Spider-man 2 vs Wolverine.
Discounting and prices below what you could even get as a used price will still happen. They will just not exist as a perpetually present price, because they know if they list at $29.99 and then discount to $10 they will get more conversions/awareness than if they perpetually held it at $15 or $10. They are attempting to induce purchases whereas Amazon/Walmart are trying to clear inventory while minimizing losses.
You can, as an example, buy God of War 2018 for $10 on PSN while it's priced at $14 at Gamestop used. Same prices on Ebay. A patient price conscious shopper is not going to get taken advantage of the way you claim.
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And the idea that a company who has already removed third party competition for retailer involvement, moved basic functionality behind subscription paywalls, increasing subscription cost while simultaneously removing subscription benefits, paid for third party companies to exclude competitors, attempted sabotage of third party controllers via software updates, and altering in-game economies after reviews were published to drive microtransactions is somehow not going to push boundaries is just an example of intentional ignorance.
Xbox is at least rumored to be pushing a physical to digital program, so far Sony is just letting you know that you're out of luck.
They will absolutely do everything they can to maximize revenue/profit that they can get away with. Key qualifier is get away with. They can get away with ending physical releases, because the demand for physical releases has been dropping by 10% per year. At the start of the PS5 lifecycle the demand for disc based consoles was 80% of sales. It has fallen to 50% of new console sales, and the proportion of disc based consoles that buy a majority of their games physically is likely less than half that volume. Physical is dying.
The reason Xbox is pursuing a disc to digital process is not because they intend on supporting discs in the future, it's because they aren't. If they intended on supporting discs it would be entirely unnecessary for them to invest in converting a disc based license into a digital based license. Xbox's current data on disc value of sales is ~1/8 of what Sony's is. They are not going to do disc based sales. Whether Sony follows a similar procedure or sells a disc based peripheral remains to be seen, but to argue that Sony should support disc based media into perpetuity is to argue for a tech debt that persistently makes the norm consumer's experience more expensive.
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