Retail stores get a 30% cut from a game sale. Console manufacturers get a further $10 in licensing fees from that sale price, on top of the retail fee. That license cost is what goes to closing that loss leading pricing of the consoles. The retail fee they can charge through their digital storefronts is new to them but only helps them pay down their gap quicker, but they are also still taking that further $10 of licensing on top of the 30%.
That’s why some PC games are $10 cheaper than their console versions.
Retail stores get a 30% cut from a game sale. Console manufacturers get a further $10 in licensing fees from that sale price, on top of the retail fee. That license cost is what goes to closing that loss leading pricing of the consoles. The retail fee they can charge through their digital storefronts is new to them but only helps them pay down their gap quicker, but they are also still taking that further $10 of licensing on top of the 30%.
That’s why some PC games are $10 cheaper than their console versions.
Is there a source for the $10 fee for digital releases? I’d love to read more about it, had trouble finding it.