Steam also sells games very cheaply in Russia specifically to compete with piracy.

(For reference: the launch price for all AAA releases is 2000 RUB (~35 USD), while the same games on consoles often go up to ~$60 and even beyond. Especially on the Switch: Zelda is ~$80!)

People here kinda grew up with the idea that paying money for non-physical things is just ridiculous. And still many people only pay money for multiplayer games that rely on official servers.

Steam offers the multiplayer AND good launch prices AND sales with huge discounts AND a very convenient interface for downloading and launching games… so tons of PC gamers did get sucked into it :D

An $80 packaged game on a shelf probably nets the developer the same profit as a $20 digital version of the same game delivered via Steam. Packaging, distribution and retail markup are a big chunk of the price.

As an aside to this, I find it astonishing that you even still see packaged games on the shelf. The last couple of games I bought from a retailer were just a carboard box, a dvd sleeve inside and a business card with a download link on it inside that... No need to pay a markup for literally nothing.

funnily enough, sometimes the cardboard box is cheaper than buying the digital download.

I assume a motivations of it are a) to have presence next to console games and b) gift-giving? If there were at least the basic versions of the games on the disc, you could add c) people with slow internet to the equation, but that seems less and less common.

Around here (Central Europe), it’s ALWAYS the case. Steam has Europe-wide pricing, local stores’ normal prices are often 40% lower on launch day.

Not so much at release. Big titles at release will match, more or less, their store counterparts in cost. The discrepency only appears after some time, when Steam pushes for discounts to older titles to maintain sales whereas the store simply just keeps the price at more or less the same level until it's dumped into a bargain bin.

This is part of why the grey market for keys has surged here - when Steam and the stores are both about the same amount for a new release, the only cheaper avenue is to exploit the real vs perceived forex difference, and (moreso) the fact that grey market key stores don't price in our consumer protection laws (and in turn, the buyer doesn't get any of those protections).

It's more expensive to put a game on a retail shelf for many reasons, not just the retailers cut. Steam also takes a cut. For retail you have to manufacture, you have to distribute (world wide), you have to maintain an inventory, you have to get packaging ratings and comply with retail rules. It only makes sense to do for the titles you have the most confidence in. Which tends to be the premium ones.

Yes, price is certainly part of accessibility. To sell to a customer, you need to provide a product they want at a price they are prepared to pay.

This is why I predict that the $10 per month unlimited video streaming services will work, and the $10 per month unlimited music streaming services will fail. I don't think enough people are prepared to pay that price for unlimited music.

And you can also get redeem codes from secondary markets so there's always a way to get a deal.