On the one hand, fair point.
Games appear to be against inflation. If anything, a triple A title has reduced in price, especially if you count for inflation.
How? And, why?
Well a few costs have been cut at retail:
- Distribution has gotten better and more efficient
- Manuals have been trimmed down and any good stuff is saved for the limited/special editions
- Games are now on disc, much cheaper than cartridges of old
So, in reality, retail games haven't really dropped in price. They have cut extras though. And, of course, DLC has added additional revenue post sale at retail.
So, fair question. Why does a digital game appear to be the same price? It doesn't even have any of those things?
Well...
- Servers/Hosting (Warehouse storeage/Retail space): These games don't exist in thin air. They have to be stored somewhere for someone to download. You may get a few gigs free from the likes of Dropbox, OneDrive and etc. But space is not free. There is a cost. Imagine how big the Steam severs have to be to host all their games? Huge.
- Bandwidth (Delivery/Transport/Petrol) : Fair play to most major online digital gaming services. It is rare, and only really on a major release, do you get issues. You maybe downloading 50gb for one game. How many thousands (even millions) are doing that at the same time? With that game and the other thousands of games at anyone time. That requires some serious bandwidth.
- Maintenance of Service (Retail staff costs/Delivery staff costs etc): These services again need to be amazing. I mean, any glitch, and your system could be down and revenue lost. That requires serous technology experts.
No doubt, digital distribution is better for a business. It isn't free though, there is a cost. Lots of it. It may not be as much as at retail, but look how much retail has lost to cut costs in recent years?
Over simplifying the argument is easy. If we want our gaming industry to thrive we have to be willing to pay.
If a loaf of bread cost $1 10 years ago. Why does it now cost $2? Inflation.
If a triple A title costs $60 10 years ago, how does it beat inflation, and stay at $60? Cost cutting.