Not defending Dementia Donny and either way I’m not shelling out $80 for a game ever, just wondering if this is really a result of the tariffs. I understand the console price being high due to them but I don’t see how it would affect the price of games that are essentially going to be 100% digital
The Taxer-in-Cheif can be a moron at the same time that corporations rape our wallets without either of them excusing the other.
Prices are set by graphing a demand schedule and the supply. You graph how many sales you will get at each price point (sales go up as price goes down). Then you graph how many a company will produce at each price point (the more it costs, the less they will be willing to make/risk). The point where those two graphs intersect is the equilibrium. Which is the best price to charge. Taxes shift the cost, increase the price where they intersect.
Digital is weird. Iirc, the risk is more in pirating. The more copies that exist, or the easier they are to access, the more pirated content will be out there. Don’t forget to include shareholder profits in cost, and the cost of other parts of the business (like a beloved endeavor that doesn’t turn a profit, Costco hot dogs for example).
I’m not an economist and welcome any better explanations or corrections to this. It’s been a while since I took that class. But I love the topic.