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EEDAR: 55% Of Xbox 360 Owners Purchased A Downloadable Game Through 2010

Market research firm EEDAR said around 55 percent of Xbox 360 owners in North America purchased at least one downloadable game, as prices for digitally distributed console games rise.
New data from market research firm EEDAR [PDF] shows that 55 percent of Xbox 360 owners in North America purchased at least one downloadable game as of the end of last year, up from about 43 percent in 2009. Xbox 360 had the largest percentage of downloadable game buyers, compared to user bases for PlayStation 3 and Wii, but all three consoles saw rises in downloadable game purchases year-on-year. About 50 percent of North American PS3 owners purchased at least one downloadable game through last year, EEDAR said, up from around 42 percent in 2009. Downloadable game purchases on Nintendo's Wii climbed to around 43 percent in 2010, up from around 37 percent the year prior. EEDAR said the average price of downloadable games on the three major consoles last year was $10, with an average gross profit of $7. That's compared to the $48 average price tag for a physically-distributed game with a $22 gross profit. The firm also outlined how publisher revenue for a $60 physical game amounts to just $30 after subtracting the retail margin, first-party royalties, packaging and shipping, price protection and co-op costs. Digital game sales have much fewer hands in the "cookie jar," EEDAR said. A $20 digitally distributed game sees publisher revenues of $14 after 30 percent in network royalties is taken out. Price points for downloadable games are also "slowly increasing," the firm said. For example, Xbox 360 downloadable games averaged just under $8 in 2006 -- last year average prices were over $11, the highest average among all three consoles in 2010. EEDAR added that it expects revenue from downloadable games and downloadable content to grow 35 percent in 2011, and make up 26 percent of console software sales by 2014.

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