A report explains why the industry is increasingly betting on digital games

A report explains why the industry is increasingly betting on digital games
Digital games: an analysis reveals why they are much more profitable than physical ones

Most read in Argentina

Bone marrow: the silent factory of blood cells

  1. Máximo Kirchner was arrested while driving a truck with an outstanding warrant

  2. The Argentine National Team crushed Bolivia 4-0 in their first friendly of the FIFA date

  3. Milei started Argentina Week with meetings with OECD leaders and major companies

  4. RIGI: Toyota will make the largest investment in the history of the Argentine automotive industry

Imagen de Editorial Team
porEditorial Team
Argentina

An analysis explains why digital games generate higher revenues than physical copies for companies

Add La Derecha Diario on
Share:

  • In physical copies, part of the income goes to manufacturing, transportation, distribution, and marketing.

  • According to Toto, this difference explains why major companies have a financial incentive to prioritize digital sales.


    La Derecha Diario on X

    1. URGENTE — LULA INUNDA A PROPÓSITO A LA ARGENTINA: ITAIPÚ SUELTA EL AGUA DE EL NIÑO Y EL PARANÁ SE DESBORDA EN EL LITORAL La Represa de Itaipú, controlada por el régimen de Lula, mantiene abiertas varias compuertas de su vertedero deliberadamente desde finales de septiembre y descarga alrededor de 10.700 m³/s hacia el río Paraná. El agua liberada por las represas brasileñas de la cuenca alta, en medio de fuertes lluvias en la previa del fenómeno de El Niño, llega directo a Argentina y obliga a Yacyretá a abrir su vertedero principal ante caudales de unos 28.000 m³/s. Esta acción deliberada del dictador Lula da Silva está provocando que el Paraná se acerque al nivel de alerta en Ituzaingó, se cierren las Cataratas del lado argentino y que haya riesgo de inundaciones severas en Entre Ríos y Corrientes.

      3 min ago

    2. TIPAZO: @FlavioBolsonaro agradeció el apoyo de los repartidores que trabajan con sus motos y aseguró que serán respetados en su gobierno. "Tendrás dignidad y un presidente que los mire con cariño. Cuenten con nosotros".

      13 min ago

    3. URGENTE — TORNADO EN CHILE: Imágenes registraron un tornado en Santiago de Chile, en el sector de la Alameda, en un suceso que no ocurría en la capital chilena desde finales del siglo XIX.

      22 min ago

    4. ARGENTINA VOLVERÁ A TENER CAPACIDAD SUBMARINA: Francia y Alemania ofrecieron financiar al 100% la compra de tres submarinos de ataque convencionales para reconstruir una capacidad que la Armada Argentina perdió tras la tragedia del ARA San Juan. La competencia enfrenta al Scorpène francés de Naval Group con el Tipo 209NG alemán de TKMS. Ambas propuestas cumplen los requisitos técnicos y contemplan una operación estimada en unos USD 2.300 millones, con financiamiento total en cuotas. La decisión final quedará en manos del Gobierno de Milei y, una vez firmado el contrato, la primera unidad podría incorporarse entre cinco y seis años después.

      33 min ago

    5. URGENTE — SE VIENE LA DERECHA EN FRANCIA: La líder derechista Marine Le Pen alcanzó el 37% de intención de voto en una nueva encuesta. https://derechadiario.com.ar/internacionales/marine-pen-alcanza-37-en-encuestas-aventaja-ampliamente-izquierda-radical-en-francia

      43 min ago

    La Derecha Diario logo
    TwitterInstagramYouTubeTikTokFacebook
    Derecha Diario TV

    Nosotros

    • Quienes Somos
    • Autores
    • Donar

    Privacidad

    • Protección de datos
    • Canales
    • Sitemap
    • RSS

    Contacto

    • info@derechadiario.com.ar
    PUBLICIDAD
    La Derecha Diario logo
    ESX logoInstagram logoYouTube logoTikTok logoFacebook
    ARGENTINAUNITED STATESECUADORISRAELMEXICOURUGUAY
    DERECHA DIARIO TV
    • ES
      XInstagramYouTubeTikTokFacebook
    • DERECHA DIARIO TV
    • Sections
    • ARGENTINA
    • UNITED STATES
    • ECUADOR
    • ISRAEL
    • MEXICO
    • URUGUAY
    • Countries
    • La Derecha Diario logoLA DERECHA DIARIO
    • La Derecha Diario México logoLA DERECHA DIARIO MÉXICO
    • La Derecha Diario Uruguay logoLA DERECHA DIARIO URUGUAY
    • La Derecha Diario Ecuador logoLA DERECHA DIARIO ECUADOR
    • La Derecha Diario Israel logoLA DERECHA DIARIO ISRAEL
    • La Derecha Diario Estados Unidos logoLA DERECHA DIARIO ESTADOS UNIDOS
    • Topics
    • GUERRA EN IRÁN
    • The Newspaper
    • QUIENES SOMOS
    • AUTORES
    • PUBLICIDAD
    • DONAR

    Related news

    Martín Varsavsky invested again in Argentina: “The country is heading in the right direction, the opposite of Europe”

    Martín Varsavsky invested again in Argentina: “The country is heading in the right direction, the opposite of Europe”

    The espionage folders on judges, opponents, and businessmen found in CFK's vault

    The espionage folders on judges, opponents, and businessmen found in CFK's vault

    The United Kingdom arrested an Iranian on suspicion of preparing acts of terrorism at a US base

    The United Kingdom arrested an Iranian on suspicion of preparing acts of terrorism at a US base

    Trump Effect: the US economy recorded its lowest unemployment rate in over 50 years and poverty also decreased

    Trump Effect: the US economy recorded its lowest unemployment rate in over 50 years and poverty also decreased

    The Trump administration begins a series of refunds for excessive charges to nearly a million Obamacare users

    The Trump administration begins a series of refunds for excessive charges to nearly a million Obamacare users

    National Lottery: all the winning numbers from Thursday, October 1

    National Lottery: all the winning numbers from Thursday, October 1

    Digital games continue to gain ground over physical editions and a new analysis suggests that this model can significantly increase the profits of companies. The study explains how distribution costs change and what impact that has on the revenues of the leading companies in the sector.

    The report, prepared by analyst Dr. Serkan Toto, CEO of KantanGames Inc., comes just days after PlayStation announced that it will stop producing new physical discs starting in January 2028.

    Digital games continue to gain ground over physical editions
    Digital games continue to gain ground over physical editions

    How much more profitable digital games are

    According to Dr. Serkan Toto's analysis, a physical copy of a video game incurs about 35% of revenues in production, distribution, and marketing.

    In the case of external studios, that percentage rises to nearly 50%, as they also have to bear the costs of licenses to publish on platforms like PlayStation, Xbox, and Nintendo.

    In contrast, in digital game sales, external studios only face the percentage corresponding to the digital store, which is equivalent to 30% of the sale price. The platform-owning studios retain the entire income.

    How much more profitable are digital games
    How much more profitable are digital games

    How profit changes between a physical and a digital copy

    The report uses a video game priced at US$70 as a reference.

    • An external studio retains about US$49 for each digital sale.

    • The platform-owning studios like PlayStation, Xbox, and Nintendo keep the full US$70 for each digital copy.

    How profit changes between a physical copy and a digital one
    How profit changes between a physical copy and a digital one

    What impact could the abandonment of physical discs have

    The analyst believes that eliminating the physical format could increase publishers' profits by up to 54%, although he clarifies that this is an estimate based on multiple variables.

    He also notes that the calculation does not take into account taxes, market differences, specific country costs, or private commercial agreements between platforms and publishers.

    Why PlayStation and Xbox promote the digital format

    The report states that platform-owning companies gain greater benefits when users purchase digital games, as they reduce costs associated with the production and distribution of discs.

    Why PlayStation and Xbox are driving the digital format
    Why PlayStation and Xbox are driving the digital format

    This discussion gained momentum after PlayStation announced it would stop manufacturing new physical discs starting in January 2028, a move that sparked speculation about a similar path for Xbox.

    What other factors influence the future of digital games

    The analysis also mentions that the rising costs of video game development and platforms are part of the current industry landscape.

    What other factors influence the future of digital games
    What other factors influence the future of digital games

    Additionally, it notes that some titles have already begun to raise their prices to US$80, so the profit margin from digital sales could widen if that trend continues.