You do realize that same game costs $13 as a digital version? I can guarantee people are not going to buy a physical version of a game if it cost between $140 and $160 (assuming the same overhead as your example).
Where are you getting hundreds from? If a $30 sale is $13 digitally, that means the production overhead can be no more than $17 for the media… and it couldn’t be that high, because LRG needs a cut as well as the publisher and developer.
My bad, I guess I was more tired than I thought. That said, the $17 is production costs because the cost of the digital version already contains a developer/publisher cut and the digital storefront cut (which in this case would subsidize LRG cut). Which means those cuts are already covered by the original $13.
While I messed up the numbers the point more or less stands, would people pay $90 for a physical version of a $70 game? Most people already consider $70 to be too high and wait for discounts.
So looking at the projected earnings of 190,000,000,000 yen, that means they are a-okay with losing 10%, which comes out to a missing $11,996,123 in sales.
I wish I was in a position where I could shrug off 11 million dollars.
But they are saving at least 5 times that by not fucking with physical discs….
Wow, at those rates Limited Run Games must be hemorrhaging money by selling physical media at $30 a copy.
You do realize that same game costs $13 as a digital version? I can guarantee people are not going to buy a physical version of a game if it cost between $140 and $160 (assuming the same overhead as your example).
Where are you getting hundreds from? If a $30 sale is $13 digitally, that means the production overhead can be no more than $17 for the media… and it couldn’t be that high, because LRG needs a cut as well as the publisher and developer.
My bad, I guess I was more tired than I thought. That said, the $17 is production costs because the cost of the digital version already contains a developer/publisher cut and the digital storefront cut (which in this case would subsidize LRG cut). Which means those cuts are already covered by the original $13.
While I messed up the numbers the point more or less stands, would people pay $90 for a physical version of a $70 game? Most people already consider $70 to be too high and wait for discounts.
Your thinking is a little bit backwards. The $70 price point of video games was not set by digital storefronts… it was set by physical media.
$70 is where the development cost, marketing, physical production and shipping can be sold at a profit.
So maybe you should be asking why I can buy a disc of Madden 27 at $70 while you can’t buy it at $50.