Sony Saddles Publishers With PS3 Distribution Fees, Shoots Self In Foot

f?id=49c3dba914b9b9ba007d59d6&maxX=272&m

Maybe, just maybe, if Sony (SNE) had done what mega-publishers like Activision (ATVI) and EA (ERTS) have been begging it to do — cut retail prices on the PS3 — it would be easier to sell those publishers on new fees.

But no. MTV is reporting Sony is now instituting a 16 cent-per-GB charge on downloads on its Playstation Network. So a company like EA, which is debuting a 1.3 GB demo of its new game Red Alert 3 today, will get billed $208,000 if its demo gets downloaded a million times.

Microsoft (MSFT) doesn’t charge publishers a fee to distribute games on its Xbox Live service.

Hard to see the wisdom of this move — we already see hit games like Fallout 3 and Grand Theft Auto 4 delivering Xbox-only add-ons. With publishers already questioning whether it’s worth it to build games and add-ons for the PS3’s much smaller audience, the extra costs Sony is now charging will hardly help convince them.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.