Game publishers and developers are increasingly adopting the strategy of digital-only versions to maximize your profits and reduce your costs. This approach has caused controversy in the industry, as seen with the release of Alan Wake II. Personally it’s not something I like, although it’s been years (I’d say over 11) since I haven’t bought a game in physical format, I think there should be some room for all the options.
In the case of Remedy’s game, the decision to go digital makes good business sense. Remedy, as a small developer, has partnered with Epic Games, a leading company in the digital industry. Tim Sweeney’s company not only provided excellent financial support for the development and marketing of the game, but also avoided the additional costs associated with the production and distribution of physical discs. This strategy resulted in the price of Alan Wake II being reduced to $59.99 on consoles and $49.99 on PC. However, not all companies will follow this approach, as others, like Sony, have made it clear that revenue generation is their top priority; Yes, don’t expect price drops, even if you buy digitally.
A speech we’ve been listening to for years, but this time it could be true
According to the already more than renowned analyst, Matt Piscatelle, this digital “rush” will reach more publishers, developers and platforms that will adopt digital-only releases over the next two years. He even predicts that by 2028, big budget games will be digital only. This trend adds to price increase introduced in 2020 for PS5 and Xbox Series games
Piscatella says “digital-only versions of AAA games are already here” and that trend will accelerate over the next two years. He also points out that digital engagement rates are reaching a tipping point, which is evident on both Sony and Microsoft platforms. Other big publishers like EA and Take-Two already derive most of their revenue from digital media, and Capcom is following suit.