this post was submitted on 12 Jun 2025
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While that is true, from what I understand from reading up on this topic some more, Nintendo (for example) has always taken a 20% cut, even on physical games and retailers would take ~25% in addition to another ~5% by the manufacturer. With physical sales, the publisher could expect about 50% of the sales while with digital sales you can expect roughly 70%. Of course, this doesn't even take into account things like licensing fees. I am sure this is all very simplified and subject to change, but it gives us a rough idea of where the money is going - in the pocket of the publisher.
Sources (not the best but there isn't a lot of public data on this): https://www.konvoy.vc/newsletters/evolution-of-console-business-models https://www.serkantoto.com/2020/12/30/price-video-console-game-digital-physical/ https://www.zeldadungeon.net/forum/threads/game-price-breakdown-digital-vs-physical.62076/ https://globalxetfs.co.jp/en/research/video-games-esports-building-on-2020s-rapid-growth/index.html