As far as publishers are concerned, the single greatest cancer they face is the resale market. When a store sells a new game for £60, the publisher makes about £20, and the store gets between £15-20, depending on how they choose to price it. The rest is the cost of manufacturing and shipping. (These are rounded estimates, it varies)
Then, a week later, when someone trades that game in and the store resells it for $40, they get all of that, and the publisher gets nothing.
From their perspective, that’s basically theft, which is why they’ve been trying for decades to put a stop to it, which they can’t, or at least make more money from secondary sales by bundling single-use codes for “bonus” content that really should be part of the main game, which people who buy preowned will have to shell out extra for.
So that’s what getting rid of physical media is all about. If they get rid of the discs and cartridges, that market vanishes.
Please don’t mistake this explanation as an excuse. All of the platform holders have had the means to kill off the retail market and usher customers onto their digital storefronts for at least a decade. All they had to do was pass on even a fraction of the savings they make selling digitally, which cuts out the manufacturing, shipping, and retailer costs, onto the customer. But they haven’t. Games cost the same on the Playstation Store as they do on the Gamestop Shelf. Sometimes more!
They could have used the carrot, but pure greed means they’re now opting for the stick.
Edit, Supplemental Question: This is my first post on Lemmy, and the responses have me wanting to clarify something- Is everyone on this platform fucking mental?
I think that big game publishers have found that there’s a real ceiling for what people are willing to pay for games, and direct digital sales are the only way they can drive up their share of that amount.
Game prices have not kept up with inflation over the past 30 years. If you cut the production costs and you cut out the reseller’s margin, that equals more revenue for first-party titles. And it further sweetens the pot for console companies because they can take a cut of third-party titles that go through their stores. (Third-party developers still save on physical production and distribution, so it’s a win for them, too.)
Not to mention the overall move toward software-as-a-service subscriptions across the board. If they can take your one-time $70 purchase and convert it into a monthly $5 subscription fee, now you’re paying $130 for the first year and $60 per year afterward for that game.
I have games from 25 years ago that I still play. I feel really sorry for young gamers because they probably won’t even have the option to revisit some of their old faves 25 years from now.
(I’m working my way through Castlevania: Circle of the Moon right now. It’s not the best entry in the series, but it has its charms.)