But look at the cost of games over time. SNES games cost between $50-60 in 1991, which adjusted for inflation is $87-104 today. We now pay significantly less for games than we used to, despite the fact that the cost of development has risen insanely high. It's why bigger budget games need to sell multiple millions of copies to remain profitable now, leading to mid-budget developers and publishers exiting the industry, and a noticeable lack of risk-taking with new IP. Higher profit margins for developers and publishers from digital sales is exactly the solution we need, since consumers don't have to face a price increase for the same end result.
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I also think it's bizarre to assume digital will replace physical. Physical Collector's Editions will always exist for obvious reasons, and there will always be a market for physical standard copies of games in supermarkets (in the UK at least). Dedicated game stores might well fade away soon, but any store that caters to a wide range of consumer markets will sell games. Same way digital books and music haven't, and will never, replace physical equivalents. Digital will take market share from physical, but if you love the idea of buying physical forever you've got nothing to worry about.