Ex-PlayStation Exec Blames Publishers For High Digital Game Prices
Gordon Thornton rose the ranks to senior vice president of PlayStation’s direct-to-consumer business before leaving the company in 2022. While he was there he played a key role in overseeing the growth and success of the PlayStation Store from its nascent days on the PlayStation 3, which gave him a front row seat into how the digital games business operates.
Thornton pins any pricing strategy squarely on game publishers who ultimately decide what a title will be sold for, saying, “PlayStation operates on a buy/sell model where the publisher acts as the supplier. Because the recommended retail price is set directly by the publisher, Sony does not control these pricing structures.”
He also noted that publishers are incentivized to bring in as much revenue as possible to cover the costs of game development, which has risen significantly in the last few years. It explains why gamers never saw digital games be released at a cheaper price compared to the physical version, even though the digital copy carries less production costs. Publishers want game pricing to remain fixed to bring in more revenue.
Pricing is not the only concern with Sony's pivot away from physical media to an all-digital gaming future, though it's one that can't be ignored. Either way, Thornton isn't overly critical of Sony's decision, as the market has increasingly shifted to digital in recent years.
"The reluctance to adopt digital gaming and the relevance of physical resellers have naturally diminished. In major markets like Western Europe and the US, traditional sofa gaming has moved online, with players connecting from their homes," Thornton adds.
He also points to frequent digital sales and promotions on digital games, which has prompted gamers to wait for price drops. This, he says, "makes digital appeal to players, more so than the general appeal physical provides, like disc-sharing."
Thornton’s interview omments are unlikely to sway any of those who’ve been upset by PlayStation’s decision to end the production of game discs in a year and a half. While the platform holder isn’t the sole cause of high pricing, no longer having retailers, which often have sales, as competitors alongside the desire for publishers to have fixed pricing will undoubtedly make it harder on players' wallets.
