Friday, March 5, 2010

Price Breakdown on Physical Games

This isn't new news, but I thought it was very interesting and if anyone reads this blog and likes playing video games, its something that they should carry with them in future game purchases.

For example, you buy a game at Future Shop, EB, Best Buy etc, the base price which they sell it for would be $60. Depending on which country you are from, taxes may vary. For Canada a $59.99 game comes to $80 with taxes.

So right away, $20 bucks go to the Canadian Government.

The retailer takes $15 cut, plus a 7$ fee for returns.

Distribution and Packaging is $4. So to get it from the warehouse to your shelf.

Royalty fees that go to Sony, Microsoft, Nintendo takes a $7 cut.

Finally $27 goes to the Publisher.

So the day that they hope everything goes digital distribution, I hope they they take into consideration and apply the appropriate cost cut. So if that is the case then most games that we buy online today should only cost us 38$. I mean the $4 distribution fee would still be included but we can take out the the $22 bucks from retail.

Just because I don't know and haven't checked, if I was to buy Battlefield 2 Bad Company online has digital downloads or Bioshock 2, are these games priced at $38 or $39.99? or are they selling them for $49.99. If that is the case then they are just shitting on the consumer and stuffing their pockets with a 31% increase in profit. I will gladly pay the extra $10 bucks for a $59.99 game so I could have the hardcopy that I could resell later and get profit back.