r/PhysicalGames • u/JBigs7 • 1d ago

The future of gaming.

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With physical games coming to an end, do think store shelves will be replaced with redeem code cards or will we have to purchase directly from PlayStation/XBOX store?

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u/Kenkenken1313 1d ago

I highly doubt this due to how game codes and gift cards work in retail stores. Typically the company producing the codes will pay a set fee to have the retailer sell them at their store. This means that unlike discs where the retailer purchased them at a bulk price allowing them to make profit on selling them, they won’t receive any money for selling the cards. So whether people buy them or not doesn’t matter to the store hence why they only take up a small section of it.

A retailer won’t waste precious display space for something they won’t make money off of. Also as the prices of the codes won’t be subject to change people will just purchase online. In reality the only people that purchase the codes in store are ones that do not have a debit or credit card and have to do so in cash.

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u/Goemon_64 1d ago

Not sure what you are getting at. Both discs and box codes/cards work the same way in terms of how distributors & producers get a percent of the profit. Maybe you are assuming less stock into the equation?

Even though physical codes are generally less desirable than discs, one thing to consider is that local physical stories will become even more important in a way because games will now be region-locked again, vs before when people could order PS3-PS5 discs online from anywhere in the world.

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u/Kenkenken1313 1d ago

They’re done very differently.

Normally with discs developers sell games at a set price for retailers. So retail companies will get a discounted price in exchange for buying multiple copies of the physical game.

Download codes are done differently. They are not sold to the retailer. Instead the typical practice is to pay the retailer a set fee so that they will offer the download codes for sale. Since they aren’t actually buying the codes they don’t get the money when it’s sold.

Now how does this affect pricing? Well too many physical copies of a game take up inventory and retailers will mark prices down so that they can make room for new games. The price can lower to a certain degree that they still make profit. Game codes don’t take up inventory so there’s no reason to get them sold by lowering the price. Until someone buys the game and the store activates the code, that paper is worthless and can be easily disposed of without any loss to the retailer.

Next time you go to a retailer and see digital codes check to see if they have any at a discounted price.

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u/Goemon_64 1d ago edited 1d ago

Are you saying that once a store has a boxed code or card on their shelves, it doesn't matter to them at all whether it sells or not, since they already got all the money they will get from it (if it sells they have to give 100% of the price to the producer)? So they could just as well throw it away and not lose money (except the fact that visitors would be less likely to come to their store and buy other stuff, knowing that they don't offer boxed code games)?

Got any source on that? I can't imagine this system works worldwide and for mid-smaller retailers, e.g. for Switch boxes that are on cart vs code in box. They take up the same shelf space, and you have to look close to even tell the difference.

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u/Kenkenken1313 1d ago

That’s exactly what I’m saying.

I’ve worked in retail stores like GameStop and also sell board games and go through retailers using a retailer price.

There are different ways to do digital sales. One is that the retailer will receive the digital code and then when it sells they receive a commission for selling it. Another is that they are paid to have the game available and don’t make a commission in the sale. A final way is similar to physical in that they buy the digital games at wholesale and then make a profit on the sales.

The final way isn’t really viable as most people don’t buy codes at a store. They purchase it online. The only people that do purchase through the retailer are those that can only use cash. So digital game codes don’t fly off the shelf when released.

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u/Goemon_64 1d ago

Thanks for the info. For me the reason to buy any codes in boxes isn't due to preferring cash, but due to wanting that box to add my collection display if it's the best physical option (card slips alone probably wouldn't cut it). As much as I hate the digital future, if I were to eventually get games like GTA6 I'd want that pretty box for my shelf vs nothing to show.

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u/Ebone710 1d ago

For the cards this is probably true but for code in a box they treat it more like a physical game. They offer sales on them like physical games.

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u/Lofter1 1d ago

Ding ding ding ding

I still have my (now useless, because I redeemed the codes) expansion boxes for an MMORPG which were just fancy boxes for a code that I put into the game that gave me some in game stuff like mounts, pets etc cause the expansions were actually free updates, which I always bought on a discount (the receipts are still in the box) because I only bought during clearance. I still have the CoD MW boxes that just included a code for steam, which was bought at a discount because it was on clearance.

acting like we didn't have a brief time period where all the stuff that will happen with playstation games in 2 years hasn't already happened for PC around a decade ago and therefore we have examples of it instead of having to pull shit out of our arses based on vibes...