Monday, April 27, 2009

Digital is More Expensive?

Since the Xbox 360 started offering the ability to download older games from the original Xbox library of games online and store them on your hard drive, the Wii, PS3 and PSP have also taken to the idea and started doing it as well. I think it's a great service to have digital games instead of cds and cartridges (though I am a bit enamored with my own collection of stuff).

But I don't understand what's going on here. Instead of the idea of a digital service saving money by not using physical media, companies have started to offer the service at a premium, charging way too much money for games that are 5-20 years old.

It's hard to say for the PS3, since I can't seem to find any prices on their Playstation Network website, but the Xbox and Wii offer titles to download from their older consoles at about 200-400% markup on prices based off of eBay offerings ($15 from Live vs $6 average from StillLivesAtHome128 on eBay). Of course, the used games behemoth Gamestop is still selling Halo, a game from 2001, for $20, but only idiots shop there.

*crickets chirping*

Nintendo isn't doing much better. Nintendo offered the first three Mario games for download on the Wii for $5 each. You can find it on eBay for under a $1 if you can get an auction that doesn't charge $8 for shipping. That's almost a 500% markup on a game that they fully admit on their store website is 25 years old. In fact, it's the oldest commercial Nintendo game ever that they gave away with the console. I'm not even sure you could buy it because they made it available to everyone that had the NES.

And what's worse is that your paying for a transaction back into your childhood. Most people played these games when they were kids. I'd even bet that the majority of the buyers of games like Super Mario Brothers are in the 20+ age bracket and realize after buying the game that, like most childhood memories, some things are best left in the past. Games that old evoke other memories from times of yesteryear but not the ones that help you compare your new HD-loving, 1080p, BluRay watching eyes to the 8-bit bleeps and bloops that you fondly remember sitting cross-legged on the living room floor drinking a Tab.

Sure you have to manage a new set of resources when your dealing with digital distribution. Instead of trucks delivering games, your paying for bandwidth. Instead of paying retailers profit margins, your paying for server hard drives and routers. And instead of packaging, your paying for programmers to retrofit code to new consoles. But per game, I'd have to imagine that it's still cheaper to sell games digitally that it is to keep shipping out disks. Especially if sales are stagnate in brick-and-mortar stores.

So here's an offical plea to Microsoft, Nintendo and Sony: Stop trying to make money on games that are older than our kids. Here's some logic to follow: If (ParentAge-ChildAge/2) < GameAge Then GamePrice = 0. I think that's a pretty fair rule to follow.

Wii Store: http://www.nintendo.com/wii/virtualconsole/games
Xbox Live Store: http://marketplace.xbox.com/en-US/games/catalog.aspx?d=5

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