You do realize the production costs are much higher now regardless of less discs being produced, right? And it's mostly only indie games that can go completely without physical disc copies. If you look up the most expensive games ever made they're all recently produced games.
"Say you're
a massive publisher that's trying to compete with the
Red Dead Redemptions and
Destinys of the world. You're making a military shooter, of course. In order to hit the graphical fidelity that your fans expect, you need a staff of at least 400, and you need to give them three years (36 months). 400 * 36 * 10,000 =
$144,000,000. And that's before the inevitable delay, not to mention the marketing. Those CGI commercials aren't gonna pay for themselves."
Video game publishers are notoriously secretive about the budgets behind their games, but when a number does slip out, it can be shocking. Games like Call of Duty and Grand Theft Auto cost hundreds of millions of dollars to make, which is tough to fathom—until you do the math.
kotaku.com