Whats the point of digital only? I'd rather have the option to be able to buy a physical disc.
1). You can have as many discs as you want, but your limited to your storage limit for digital downloads.
(I dont want to delete and re-download games all the time, look at games now the bigger ones are around 50GB and getting bigger, that's only 10 games max for the next-gen consoles with 500GB storage)
2). I can lend a game to a friend or borrow a game off a friend if it was a disc.
(If it were online sharing then I'd be happy with that too, but I know that once it goes digital only the console makers/publishers will make that impossible)
-They may allow it for a short period of time to make people go 'digital' only, but as soon as it happens they will call it piracy and not allow ir.
3). I can freely sell off or trade-in my discs, even swap them for another game.
(Digital doesn't allow this yet but when it does the publishers will get a percentage of re-sale)
- Microsoft even figured out loopholes like you selling a game to a friend and then just gifting it to them online to avoid these fees, so Microsoft made it that you had to have them in your family account and be friends on Xbox live for atleast 30 days before you could gift and then after you gift a game it becomes locked into their account, they cannot re-gift it. This means whoever you sell it to will have to wait atleast 30 days before they can get the game.. I dont think many people are willing to wait so long or even if they were after a few times they'd get over it and only buy new cause its too much hassle.
4). International Pricing, In the US they sell games for $60 but in Australia they sell for almost $120.
If it was digital only I would be locked to the AUS store cause of my i.p, or maybe my first selection when I setup the console or automatically by the console cause it would be a AUS version. I would have to pay almost double what they pay overseas even though our dollar is almost the same value. But now I can import a game from the US and pay almost half the price after postage and currency conversion.
- I could set my region as US and go through a proxy to mask my I.P but then I would be locked on US servers for multiplayer and would have serious lag on all my games and I'm pretty sure they would make a new drm feature which would make this impossible anyway. (Like region locking my console)
5). Price, I find it funny that people think that the price of digital downloads would drop if it went digital only when digital downloads today are the same price as a physical disc when they don't have to pay for production, transport and outlet costs of selling a disc. When a product is monopolized into one outlet (e.g xbox online store) I've never seen that equate to cheaper product, always the opposite (more expensive product).
- I see Steam being used as an example of this, but Steam has competition in physical media and various other online stores so its prices need to be competitive. If Steam was the only outlet for PC games you would be paying the max amount they could charge you as long as they believed the selling point wouldn't drop the demand so much that it would effect their overall income.
To better explain my last point say Steam think if they priced a game at $100 it would sell about 4,000,000 units. So $400,000,000 profit.
(Say $10 per game was publisher costs, so - $40,000,000) = $360,000,000 Clear profit.
But if they sold a game at $40 it would sell 6,500,000 Units. So $260,000,000 Profit.
(Same $10 per game publisher costs, - $65,000,000) = $195,000,000 Clear Profit.
Which do you think they would choose?
With competition if they priced a game at such high prices they would get 0 sales, or maybe a few and would need to drop prices to remain competitive.. In a monopolized market they do not.
In business it doesn't matter how much production costs were as long as your selling price is higher, if they could make a product for $1 and sell it for $100,000 they would. Its all about supply and demand, if the demand is high and your the only supplier you've hit the jackpot.