What I find interesting looking at how Koei Tecmo is handling publishing of Fatal Frame Maiden of Black Water and Mask Of The Lunar Eclipse is that it's mostly digital only outside of Japan and it's available across all systems, 8th/9th gen Xbox and PS consoles, Switch and PC.
I think with physical publishing the concern isn't games won't make their money back. Third party physical publishing requires publishers to front royalties, the know 30%. So if at launch a third party wants to print say 500K on each on Sony and Nintendo systems, it retails at $60, that's $18 million off the bat they need to front to platform holders. Then physical copies in distribution have other burdens, after sold to retailers that's just not money they can bank and forget about, they need to keep money aside for things like reimbursing retailers for discount sales, price matches, and issue partial refunds for the initial sale when MSRP adjustments are made, or when inventory is agreed to be liquidated. We see this consideration at work when say physical copies of lots of games sell for a lot less than their digital counterparts, because every existing copy on a shelf is a potential cost liability later.
I highly doubt the development of a port to the Xbox wouldn't be able to be profitable to recoup the development costs, but the physical printing consideration is just an extra burden financially. So, understandable in some regards. Why it seems to make perfect sense the first game released on Xbox digitally. I'd be fine if the stuff they or any other developer is on the fence about making ports for certain systems instead chooses to release it on certain consoles as digital only releases to avoid such hassles. Right now latest figures on consoles is that it's close to 80% digital versus physical for sales so eventually I imagine omitting versions from wider multiplatform releases will become a thing of the past when the consumer preference toward digital gains much stronger footing.
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