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Leaked Xbox Boss Email Perfectly Explains Why Game Publishers Are Eating Themselves Alive (kotaku.com)

submitted 1 year ago by [email protected] to c/[email protected]

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[–] [email protected] 0 points 1 year ago* (last edited 1 year ago) (1 children)

50 dollars were console games. On PC you'd often find the same game at 30 dollars (disk) or 20 dollars (steam) on release. The difference was due to console makers taking a standard fee cut from every sale.

The first AAA games back then to be released at 40 and 50 dollars on PC were COD MW1 and BF3, which set the trend for all other games since then. This was pure profit for the publishers, since there was no cut for console makers on PC. And before you say it, no, the Steam cut back then wasn't even comparable (much less since it was a % cut and not a standard fee). In fact Steam hiked their cut because of the price hike triggered by EA and Activision, which is what then made EA pull their games off Steam and create Origin.

[–] [email protected] -1 points 1 year ago* (last edited 1 year ago)

I don't know where your information came from, but a lot of it is very wrong. I thought maybe you might be from some other country, but that would mean it's a country that uses dollars that are stronger than US dollars, which I don't think is a thing.

$50 was the standard set by PlayStation for its biggest games, which N64 couldn't match due to cartridge costs, but this standard carried over to the next generation and continued very, very briefly into the life of the Xbox 360. By 2006, all 360 and PS3 games were $60.
I bought many PC games on disc back in the day. Call of Duty 2 (not Modern Warfare 2; Call of Duty 2) was $50. You can see here via the wayback machine that a week after its release, Modern Warfare 1 is $50. Here's the PC version of Flight Simulator 2004 and the first Knights of the Old Republic for PC at $50 in December 2003. I remember there was a push to make those $50 games into $60, and the likes of Half-Life 2 and Doom 3 could sort of get away with it back when others couldn't. After buying Call of Duty 2 on disc for $50, I got the $60 version of (original) Prey, because the $60 version came on a DVD instead of several CDs, and installing games from 5 or 6 CDs was a pain that I was willing to pay $10 to not deal with back then (it also came with other collector's edition stuff).
Steam still does, and always has, taken a percent cut from game sales and not a flat fee. They priced it at 30%, because that was better than brick and mortar retail. These days it starts at 30% and follows a sort of regressive tax system once your game is super successful so that you're not as tempted to leave Steam for other platforms.
EA pulled their games off of Steam because 30% of a lot of sales is a lot of money, and they wagered they'd stand to do better if they made their own storefront, but after the first couple of years, they stopped trying to make a platform to compete with Steam and really only cared about keeping their own releases there for that 30% cut that they no longer had to pay to someone else.