[HSO]

> Retailers of CD-ROM games (when they were a thing) and video games do not charge that kind of markup.

Maybe not anymore but the app store was launched in 2008. If you look at the percentage a writer or a band makes from a physical book resp. studio album, 50% actually looks very optimistic. Don't forget, there were multiple layers involved, including shipping, wholesalers, retailers, etc. and everybody wanted a cut. There's a reason desktop software to this day has a much higher price anchor than mobile!

[georgeecollins]

2008? I started making retail software in 1995 and believe me in those days stores often only took 10 - 20% of the retail price for CD-ROMs because they drove buyers into the store.

My point was that "distributors" or retailers never took 50% as the original post suggested.

If you believe that the reason desktop software has a higher anchor price point than mobile is the multiple layers, please explain why the price point on the Steam store is so much higher than the app store.

[r00fus]

But did retail press your disks and prepare your packaging? Did they provide analytics?

Your Steam analogy is flawed due to selection bias - Steam is about games, and games are more similar to movies than apps. People want entertaining content (and a good amount) for that initial price.

Does Steam allow for freemium? What about ad-driven games?