RESOLVING THE LEDGER
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Discs Physical Media PlayStation Square Enix
As Sony soldiers ahead with their plans to end hard copies for new PlayStation games, players are fearing a future which will force them to pay more and own less. Reactions from major publishers seem to range from a shrug up to a thumbs up , while fans are overwhelmingly choosing a different finger . One former Square Enix executive believes the new scenario will drive the price on games down , though his speculations have yet to behave this way in practice.
"Digital on the PS store will likely get cheaper," posted Jacob Navok , former Square Enix business strategist. "Current prices are tied to retail. Without physical discs holding digital hostage we’ll see a larger spectrum of pricing similar to steam."
Navok says that the digital-only landscape will pit major publishers in constant, dynamic competition with each other. This would be in place of storefronts, retail or digital, traditionally having to edge out their competitors' pricing. This theory posits that it will force full-priced games to trend downwards, and points to the trajectory of Final Fantasy XVI ’s costs on Steam to illustrate that when it budges, it budges further down.
Competition between publishers is what drives pricing pressure, not competition between digital stores. This is because publishers set pricing on digital stores.
Competition between stores like EGS and Steam improves the take rates for developers, not necessarily the price for… https://t.co/6ZZw8EUJ5v pic.twitter.com/0QLQmclwsG
"The more the Playstation store becomes digital only, the greater this trend will accelerate," Navok follows up . "You will see more sales and dynamic pricing similar to Steam because publishers will compete among themselves to a greater extent."
Now it is true that digital storefronts like Steam have near constant fire sale bargains. Even AAA blockbusters shave off some 20 percent here and there. Buying trends on that platform are also increasingly going towards older titles , suggesting these discounts can drastically extend the coat tails of certain titles. However, on the other end newer games are getting increasingly expensive, even on digital platforms. The fact that Grand Theft Auto VI will be a purely digital release has not caused its price point to budge.
Navok’s interpretation rests on a lot of maybes and charity. Publishers may want to drop some sandbags on the suggested price to lift the game listing on the store page. But they may also see a world without used sales or sharing and decide to let all hell loose. On Steam, prices often dip, but that culture has not permeated to PSN and certainly not Nintendo’s eShop. Given that the majority of sales have been digital for years, and that shift has yet to happen, suggests it won't any time soon.
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