Why are videogames usually higher priced for consoles than PC?
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Individual games are priced the same, but overall, everything is cheaper. There are steam sales, which can have most games go for up to 75% off. There's also this website called humble bundle. Each week, they have a bundle of games that the developers have agreed to provide for the bundle. You get to choose how much you pay. You can can choose how much money goes to the developers, how much goes to humble bundle itself, and how much goes to that week's bundle's charity. You can potentially get over $100 of games for under 10 dollars.
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This is a basic Antitrust example of a lock-in or tie. You are enticed into purchasing a console because they are relatively cheap price (compared to a P.C.) and the manufacturer then extracts profits through charging higher prices for the games. Another example are printers. The ink cartridges often cost as much as the hardware because the manufacturer sells them cheap knowing that they can recoup profits though charging an extortionate amount for compatible, and patented, ink cartridges.
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Good thing I read some of the comments, I was about to say something that would've made me look like an asshat.
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For reference there's about a $10 difference between console and PC games on release in the US ($50-60 for consoles and $40-50 for PC). As others have mentioned all of, if not more than, that difference goes directly to the console manufacturer. All of this is per the development agreement where the developer pays for the dev toolkit and receives consent to display the console logo on the boxart.
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They know most people who play video games on console are idiots, so they can get away with overcharging them.
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I think the developers have to pay the console companies a percentage to sell games that run on their hardware. PC however is structured differently. Profits are set up to produce regardless of individual genres of software. As in, a PC is a gaming machine, but it's also many other different things.
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From what I've understood with the concept of cheaper games + steam sales is that a big portion of modern PC gaming is DRM. When you're buying and selling used games (consoles) the developer isn't maximizing profit. PC has a lot of DRM so PC devs are getting the money off people who were going to settle for a used copy, but forced into buying a new one.
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Consoles are harder to pirate games for. You just download any PC game.
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Wow, sounds like you're just being gouged. That's about twice what games cost here in 'Murica.
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Cost has little to do with pricing. Cost is the amount of labour that went into it times the hourly rate of your slaves. Pricing is what the market is willing to pay for it. Make something scarce, the price goes up.
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