Support NeoGAF

[Perrott]

The ignorance is palpable. I’m guessing you are a PlayStation only player?

PC player currently. Thinking about getting a Series X for backwards compatibility play (Xbox/X360 titles). Don't have a PS5 and I'm not even considering getting one until the Pro at the earliest (especially after the awful show from the other day).

So yeah, no platform bias at play here. I have a similar stance in regards to Apple's walled-garden ecosystem (or Xbox's marketplace or Nintendo's eShop): the hardware and software provider of a given ecosystem shouldn't be told how to run it by any government.

 

[Perrott]

Because Sony is shit for not allowing 3rd party games to sell digital codes online.

MS and Nintendo does it, as you can buy their games from 3rd party vendors. Meaning I can buy their games for cheap.

Then support Microsoft and Nintendo only, if you feel like they treat you better as a costumer. Speak with your wallet if what they offer brings more value to your investment into their console ecosystems.

 

[feynoob]

Then support Microsoft and Nintendo only, if you feel like they treat you better as a costumer. Speak with your wallet if what they offer brings more value to your investment into their console ecosystems.

You need regulators to make Sony do what MS and Nintendo does.
You are not obligated to vote with your wallet as that is your only option to buy those games.

No need to defend them.

 

[Gamerguy84]

Lol OK. Good luck with that.

 

[DeepEnigma]

Romania or Ukrainia?

 

[reksveks]

Then support Microsoft and Nintendo only, if you feel like they treat you better as a costumer. Speak with your wallet if what they offer brings more value to your investment into their console ecosystems.

Or support regulators and politicians who see market issues the same way that you do. There is multiple ways to see the change you want.

 

[feynoob]

Or support regulators and politicians who see market issues the same way that you do. There is multiple ways to see the change you want.

People like him don't care about these stuff, untill it impacts him.

 

[Kamina]

And vampires.. don’t forget vampires.

 

[Setsuna Mudou]

Because Sony is shit for not allowing 3rd party games to sell digital codes online.

MS and Nintendo does it, as you can buy their games from 3rd party vendors. Meaning I can buy their games for cheap.

Why exactly are those digital games cheaper on 3rd party vendors?
Just to be clear, I'm not talking about physical copies, we're talking digital.

If a digital game is, say, $70 on the psn, for what reason would it be cheaper elsewhere?

There is no incentive on Sony to sell it for cheaper to some digital middle man, so how exactly can those games be cheaper?

 

[Kerotan]

They should include all 3.

What you mean?

 

[feynoob]

Why exactly are those digital games cheaper on 3rd party vendors?
Just to be clear, I'm not talking about physical copies, we're talking digital.

If a digital game is, say, $70 on the psn, for what reason would it be cheaper elsewhere?

There is no incentive on Sony to sell it for cheaper to some digital middle man, so how exactly can those games be cheaper?

Because Sony gains more money.

When 3rd party sell their games on bulk, it's cheap compared to selling single copies.

So for Sony, it's their best interest that they sell the digital on their storefront in order to maximize those sales. They get 30% cut, compared to royalty fee cut if third party vendors sells it. That is a lot of money for them.

 

[Calverz]

PC player currently. Thinking about getting a Series X for backwards compatibility play (Xbox/X360 titles). Don't have a PS5 and I'm not even considering getting one until the Pro at the earliest (especially after the awful show from the other day).

So yeah, no platform bias at play here. I have a similar stance in regards to Apple's walled-garden ecosystem (or Xbox's marketplace or Nintendo's eShop): the hardware and software provider of a given ecosystem shouldn't be told how to run it by any government.

Your comment hinted at a lack of knowledge though. So do you only buy steam games on the steam store? Do you not buy codes elsewhere?

 

[Setsuna Mudou]

Because Sony gains more money.

When 3rd party sell their games on bulk, it's cheap compared to selling single copies.

So for Sony, it's their best interest that they sell the digital on their storefront in order to maximize those sales. They get 30% cut, compared to royalty fee cut if third party vendors sells it. That is a lot of money for them.

Ah you're talking about 3rd party games in specific, ok, I was thinking about 1st party titles.
But still, the same third parties are absolutely able to provide a similar "bulk" price to Sony, there's no clause that games must be sold for $69.99 or $59.99. It just feels absolutely inefficient to add another middle man to the mix to collect another parcel of your money.

A physical sale requires retailer space which adds costs, that much is absolutely understandable. A digital sale requires literally no additional overhead, so why exactly are we wanting to add more middle men in the transaction?

Let's keep it simple, you buy an EA game, you pay X. 70% of X goes to EA, 30% goes to the console maker.

If you add a middle man, then you pay the same X, the console maker still makes 30%, the middle man makes what... 5 to 10%? So EA gets to keep 60 to 65%

I'm just not seeing what's the incentive here. I could be missing something obvious, so feel free to correct me.

 

[Three]

Still mandatory activation on PSN, but at least you had options where to put your payment details or could use gift cards etc.

Sony stopped that in 2019

So no, it’s not ‘stupid’.

It's pretty stupid because you still can just input your payment details into other stores if you wish by just buying the PSN gift cards. Gift cards are still available. Just not specific games but cards you can spend on any game. You can even find those gift cards with a discount

PLAYSTATION STORE GIFT CARD - 100 GBP (UK)

Buy cheap £100 Playstation Network (PSN) top up card for PS3/PS4/PS5/PS Vita (UK) ✔️ CD Key ✔️ Instant download ✔️ Fantastic price ✔️ Digital Download ✔️

www.cdkeys.com

The only difference is that they are not for specific games and whoever started this probe that said this prevents development of Romanian games on PlayStation I have no idea what angle they are approaching that take from. Retail stores can offer cards just fine. They just simplified the process where the infrastructure to generate codes for specific games or print specific cards weren't required.

 

[feynoob]

Ah you're talking about 3rd party games in specific, ok, I was thinking about 1st party titles.
But still, the same third parties are absolutely able to provide a similar "bulk" price to Sony, there's no clause that games must be sold for $69.99 or $59.99. It just feels absolutely inefficient to add another middle man to the mix to collect another parcel of your money.

A physical sale requires retailer space which adds costs, that much is absolutely understandable. A digital sale requires literally no additional overhead, so why exactly are we wanting to add more middle men in the transaction?

Let's keep it simple, you buy an EA game, you pay X. 70% of X goes to EA, 30% goes to the console maker.

If you add a middle man, then you pay the same X, the console maker still makes 30%, the middle man makes what... 5 to 10%? So EA gets to keep 60 to 65%

I'm just not seeing what's the incentive here. I could be missing something obvious, so feel free to correct me.

The problem is you can't get those digital from 3rd party vendors like MS and Nintendo does.

If you are a PS user, you are stuck with PSN as your digital store.

 

[BootsLoader]

This is actually good news.

 

[Nautilus]

Ah you're talking about 3rd party games in specific, ok, I was thinking about 1st party titles.
But still, the same third parties are absolutely able to provide a similar "bulk" price to Sony, there's no clause that games must be sold for $69.99 or $59.99. It just feels absolutely inefficient to add another middle man to the mix to collect another parcel of your money.

A physical sale requires retailer space which adds costs, that much is absolutely understandable. A digital sale requires literally no additional overhead, so why exactly are we wanting to add more middle men in the transaction?

Let's keep it simple, you buy an EA game, you pay X. 70% of X goes to EA, 30% goes to the console maker.

If you add a middle man, then you pay the same X, the console maker still makes 30%, the middle man makes what... 5 to 10%? So EA gets to keep 60 to 65%

I'm just not seeing what's the incentive here. I could be missing something obvious, so feel free to correct me.

The idea, I think, its that selling to a middle man garantees you a nice 10k copies sold or something like that. You would only need to convince that middle man of buying your game, versus convincing 10 thousand people. So it ends up being easier to sell to that middle man, and you can "front load" your income(Sell those 10k keys in the first day) instead of taking 2 months to convince 10k people to buy your game. And in getting a garantee pay upfront, would in theory offset the lower % cut you get from each sale. There is also an argument to be made on how having your game available for purchase elsewhere increase is visibility, but given how big marketing, Steam and gaming became, that almost became irrelevant.

But in an age where digital marketplaces and marketing is extremely efficient, and gaming is more popular than ever, the middle man is becomming increasingly obsolete.

 

[Three]

The problem is you can't get those digital from 3rd party vendors like MS and Nintendo does.

If you are a PS user, you are stuck with PSN as your digital store.

You are stuck with MS and Nintendo as your digital store regardless. They just have partnerships to generate codes for specific games rather than buy general codes for the store. If anything the reason Sony don't do it is because they are more inclined to push their physical distribution advantage over digital.

 

[DeepEnigma]

You are stuck with MS and Nintendo as your digital store regardless. They just have partnerships to generate codes for specific games rather than buy general codes for the store. If anything the reason Sony don't do it is because they are more inclined to push their physical distribution advantage over digital.

All digital future is now bee knee's for some on Gaf!

 

[feynoob]

You are stuck with MS and Nintendo as your digital store regardless. They just have partnerships to generate codes for specific games rather than buy general codes for the store. If anything the reason Sony don't do it is because they are more inclined to push their physical distribution advantage over digital.

The difference is that I am not tied to both of their store, unlike PS.

Amazon.com : Xbox digital Codes

Amazon.com : nintendo digital Codes

I can buy it from stores like this one. And even cheaper from other online stores. That is a win for gamers.

 

[Ozriel]

It's pretty stupid because you still can just input your payment details into other stores if you wish by just buying the PSN gift cards. Gift cards are still available. Just not specific games but cards you can spend on any game. You can even find those gift cards with a discount

PLAYSTATION STORE GIFT CARD - 100 GBP (UK)

Buy cheap £100 Playstation Network (PSN) top up card for PS3/PS4/PS5/PS Vita (UK) ✔️ CD Key ✔️ Instant download ✔️ Fantastic price ✔️ Digital Download ✔️

www.cdkeys.com

Yeah, you can go the long route by buying a card, then redeeming it in your PlayStation wallet, then buying the game.

This also doesn’t cover the fact you could also get deals for digital games sometimes at lower prices compared to PSN

No idea where they’re going with the claim that they dissuade Romanian developers

 

[Shadowstar39]

Romanian here. Im assuming with the rise of digital future, having multiple cheaper selling options is a good thing for everyone. U can certainly buy steam games from a lot of third party key sellers for cheaper prices and you have more options when it comes to sales, you dont have to wait for a steam sale to pick a game cheaper, you can just go on humble, cdkeys or whatever else and get it when its on sale there. Playstation doesnt allow that. Is it anti-consumer? Eh, not really, doubt the council will succeed but in our poor ass country where the average income is extremely low, we do rely on sales/cheaper keys which is what probably started this.

I am in the US and rely on cdkeys, for a lot of AA/AAA games. Sadly indies are almost never there to buy, but for AAA it's usually cheaper. I would love competition as digital games were supposed to be cheaper, yet nothing. Only nintendo is doing the voucher thing for two digital games to lower prices for 1st party and partner offerings, but for how long.

 

[Shadowstar39]

I mean, why would they? They'd earn less money that way.

I feel this is more of an issue of retailers being unable to compete in today's climate of digital media dominance, but oh they are getting what they deserve. Remember the used physical games debacle from a decade ago? That was all on them, hell, that whole shitshow even played its part in driving the old THQ out of business, killed a bunch of promising franchises and planted the seed for the over saturation of open-world games that we saw during the last generation of consoles, so fuck them.

Ugghh, id rather have used games to buy for cheap, as I have bills. Also open world is better than what we have now. Shit released games, with wokeness, bad writing, broken code, and multiplayer online only gaas.

Yeah, outside of Nintendo and a few rpgs, remakes, i am not that impressed with current gen gaming trends or what we have now. I doubt used games sales killed anyone. its always been a thing.

 

[TheThreadsThatBindUs]

Romanian here. Im assuming with the rise of digital future, having multiple cheaper selling options is a good thing for everyone. U can certainly buy steam games from a lot of third party key sellers for cheaper prices and you have more options when it comes to sales, you dont have to wait for a steam sale to pick a game cheaper, you can just go on humble, cdkeys or whatever else and get it when its on sale there. Playstation doesnt allow that. Is it anti-consumer? Eh, not really, doubt the council will succeed but in our poor ass country where the average income is extremely low, we do rely on sales/cheaper keys which is what probably started this.

The problem with this faux logic is that consoles are not PCs.

Console hardware is subsidsed by the platform holder with the intention that they make the money back with game sales.

If Sony and MS can't rely on game sale royalties because regulators force them to distribute keys on different platforms, giving up their 30% royalty, well then it's good bye to reasonably priced console hardware.

Congrats regulators, you just killed the console gaming industry and AAA gaming as a whole.

 

[Three]

The difference is that I am not tied to both of their store, unlike PS.

Amazon.com : Xbox digital Codes

Amazon.com : nintendo digital Codes

I can buy it from stores like this one. And even cheaper from other online stores. That is a win for gamers.

You are tied to their store. The code is generated from their store and the prices tied to it on both of these stores. Copies aren't sold to the retailers but retailers have the ability to generate codes through the store at point of sale. So when you buy it from amazon you're buying from the Nintendo store. digital codes vs physical. The only difference is that the retailer gets a cut. The same is true for the percentage with gift cards.

Yeah, you can go the long route by buying a card, then redeeming it in your PlayStation wallet, then buying the game.

The only additional step is hitting the buy button on the game.

This also doesn’t cover the fact you could also get deals for digital games sometimes at lower prices compared to PSN

Whatever discount might be applied can be applied to digital codes for credit. These discounts don't actually happen vs physical because the retailer actually has to think about stock management on physical whereas they are tied to the one store for digital. Look at amazon digital codes vs physical.

No idea where they’re going with the claim that they dissuade Romanian developers

It's something that the person/company who made the complaint put in

"Another effect of these practices is the discouraging of Romanian studios from developing video games compatible with PlayStation."

I don't see where they are getting that idea from. The benefits you mention though, choosing where to input payment details and gift cards already exist.

 

[feynoob]

You are tied to their store. The code is generated from their store and the prices tied to it on both of these stores. Copies aren't sold to the retailers but retailers have the ability to generate codes through the store at point of sale. So when you buy it from amazon you're buying from the Nintendo store. The only difference is that the retailer gets a cut. The same is true for the percentage with gift cards.

My friend, I will try and say it again.
"You are not tied to buy the games from their store".
Their store isn't the only option that you have. You can go to any store and buy those games. That is the point. I am not locked to one vendor like PS.

If I want to buy a digital copy, I can only buy it from PSN store.

 

[Warablo]

Is this why you can't buy digital currency from like Amazon for Sony?

 

[Three]

My friend, I will try and say it again.
"You are not tied to buy the games from their store".
Their store isn't the only option that you have. You can go to any store and buy those games. That is the point. I am not locked to one vendor like PS.

If I want to buy a digital copy, I can only buy it from PSN store.

Mate, I'm saying you are tied to their store. You buy the game, the game price is tied to their store, you redeem/download the game the game is tied to their store. How else are you not tied to their store?

It's like a country only allowing one airline company to operate and saying you aren't tied to that airline company because brookers exist. You're still tied to that airline even with that middleman.

Tell me why would amazon sell Zelda digital codes for £60 but £50 physical? Because you are still tied to that digital store pricing. The fact that Amazon generate a code from the same digital store at point of sale doesn't mean you're not tied to it. You still are.

 

[feynoob]

Mate, I'm saying you are tied to their store. You buy the game, the game price is tied to their store, you redeem/download the game the game is tied to their store. How else else are you not tied to their store?

It's like a country only allowing one airline company to operate and saying you aren't tied to that airline company because brookers exist. You're still tied to that airline even with that middleman.

Tell me why would amazon sell Zelda digital codes for £60 but £50 physical? Because you are still tied to that store. The fact that Amazon generate a code from the same digital store at point of sale doesn't mean you're not tied to it. You still are.

The problem isn't being tied to their store.
The problem is only having PSN as your only vendor.

I can get Xbox games for cheap using online vendors. And sometimes you get cheap games that way.

Last time I got a cheap copy of breath of wild, compared to the store price.

 

[feynoob]

T Three
This is what I mean.

https://www.gamivo.com/product/mario-kart-8-deluxe-us-switch?glv=dlcompare&utm_source=DLCompare&utm_medium=cpc

 

[Badlucktroll]

 

[Heisenberg007]

Not sure if this is the appropriate thread for this, but dayum you've got some interesting receipts there.

Z zedinen always brings the receipts. One of the best, most underrated posters on GAF!

 

[Three]

Is this why you can't buy digital currency from like Amazon for Sony?

You can buy currency

50£ PlayStation Store Gift Card | PSN UK Account [Code via Email] : Amazon.co.uk: PC & Video Games

Buy 50£ PlayStation Store Gift Card | PSN UK Account [Code via Email] from Amazon.co.uk. Download and play now.

amzn.eu

You can't buy digital codes for games, likely because Sony don't want game digital codes to kill physical sales at retailers.

 

[Three]

T Three
This is what I mean.

https://www.gamivo.com/product/mario-kart-8-deluxe-us-switch?glv=dlcompare&utm_source=DLCompare&utm_medium=cpc

Sometimes you get digital code reselling from bundles. For example you have this too

Horizon Forbidden West PS5 (Japan)

Buy Horizon Forbidden West PS5 (Japan) ✔️ CD Key ✔️ Instant download ✔️ Fantastic price ✔️ Digital Download ✔️

www.cdkeys.com

God of War Ragnarök PS5 (EU & UK)

Buy God of War Ragnarök PS5 (EU & UK) ✔️ CD Key ✔️ Instant download ✔️ Fantastic price ✔️ Digital Download ✔️

www.cdkeys.com

This doesn't mean the prices on genuine digital code sellers aren't tied to the single store price. You are still tied to the single stores for pricing and redemption.

 

[feynoob]

Sometimes you get digital code reselling from bundles. For example you have this too

Horizon Forbidden West PS5 (Japan)

Buy Horizon Forbidden West PS5 (Japan) ✔️ CD Key ✔️ Instant download ✔️ Fantastic price ✔️ Digital Download ✔️

www.cdkeys.com

God of War Ragnarök PS5 (EU & UK)

Buy God of War Ragnarök PS5 (EU & UK) ✔️ CD Key ✔️ Instant download ✔️ Fantastic price ✔️ Digital Download ✔️

www.cdkeys.com

This doesn't mean the prices on genuine digital code sellers aren't tied to the single store price. You are still tied to the single stores for pricing and redemption.

And?
I still have the freedom to choose where I want to buy the game from.

 

[Three]

And?
I still have the freedom to choose where I want to buy the game from.

All I'm saying is that this choice of buying the game from some other retailer is not really a choice because the pricing, redemption and download are set from the single store regardless. The retailer doesn't order a set amount to resell. There is no sell-in.

Finding some site that sells unofficial codes from bundles or promotions at a discount applies to all stores and has nothing to do with the official point of sale system that official retailers use. Those are still tied to the single digital stores who control price and no distribution. If you don't like shopping directly and would rather the retailer get a cut you can buy currency from the store, it achieves the same thing.

 

[sono]

PlayStation is bad for selling digital PlayStation games only through the PlayStation Store."

So fucking stupid.

Yes

 

[feynoob]

All I'm saying is that this choice of buying the game from some other retailer is not really a choice because the pricing, redemption and download are set from the single store regardless. The retailer doesn't order a set amount to resell. There is no sell-in.

Finding some site that sells unofficial codes from bundles or promotions at a discount applies to all stores and has nothing to do with the official point of sale system that official retailers use. Those are still tied to the single digital stores who control price and no distribution. If you don't like shopping directly and would rather the retailer get a cut you can buy currency from the store, it achieves the same thing.

The thing you are ignoring is that having multiple vendors encourages price stability.
Both Nintendo and MS can't fk up that.
Sony on other hand has no reason to lower those prices.

 

[Three]

The thing you are ignoring is that having multiple vendors encourages price stability.
Both Nintendo and MS can't fk up that.
Sony on other hand has no reason to lower those prices.

How? That's what you're not getting. The "price stability" is a set price. It comes from the fact that the single digital store is setting the price. Nintendo and xbox have no reason to lower price unless there are other digital stores like on PC selling the same game but there isn't actually, it's all tied to the single store. This is worse than brokers for airlines because you can actually have sell-in and resell limited availability. For this though at point of sale the retailer requests a code from the same single digital store who sells it for the set price Nintendo or MS have set.

Again why do you think Zelda ToTK is £50 physical from Amazon with free shipping but a digital code from Amazon they email costs £60, the same price as the Nintendo eShop? Surely digital is less hassle for Amazon who don't have to ship anything or store anything. What happened to that price reduction and lowered price from competition?

 

[feynoob]

How? That's what you're not getting. The "price stability" is a set price. It comes from the fact that the single digital store is setting the price. Nintendo and xbox have no reason to lower price unless there are other digital stores like on PC selling the same game but there isn't actually, it's all tied to the single store. This is worse than brookers for airlines because you can actually have sell-in and resell limited availability. For this though at point of sale the retailer requests a code from the same single digital store who sells it for the set price Nintendo or MS have set.

Again why do you think Zelda ToTK is £50 physical from Amazon with free shipping but a digital code from Amazon they email costs £60, the same price as the Nintendo eShop? Surely digital is less hassle for Amazon who don't have to ship anything or store anything. What happened to that price reduction and lowered price from competition?

Because there is no incentive to reduce the price, when there is no competition. That is what vendors do. Make the console store lower the price, in order to gain that 30%.

As for physical, it's occupying storage space, which is why it has these sales. They want to get rid of them fast. Digital doesn't occupy any space warehouse.

 

[Three]

Because there is no incentive to reduce the price, when there is no competition. That is what vendors do. Make the console store lower the price, in order to gain that 30%.

But you are saying there is competition when there isn't. Even for old games they match. It's because the retailer is only acting as a broker with unlimited supply from a single store and no sell-in.

 

[IntentionalPun]

Why exactly are those digital games cheaper on 3rd party vendors?
Just to be clear, I'm not talking about physical copies, we're talking digital.

If a digital game is, say, $70 on the psn, for what reason would it be cheaper elsewhere?

There is no incentive on Sony to sell it for cheaper to some digital middle man, so how exactly can those games be cheaper?

For the same reason Sony and everyone else sells physical copies w/ a margin for the retailer, and doesn't just sell them directly on their own stores.

(retailers provide marketing essentially, as people see your product)

Sony is taking away avenues for that because retailers are mattering way less for video games as we move into a digital era.

Which is their business; but it's also the business of governments to regulate... well, businesses.

I don't think they should get in trouble for this considering, well.. like iOS App Store exists; but it's a specific change in business practices that removed consumer choice that used to exist, and increased retail competition. edit: Actually, I think Apple does allow publishers to sell game download codes?

 

[feynoob]

But you are saying there is competition when there isn't. Even for old games they match. It's because the retailer is only acting as a broker with unlimited supply from a single store and no sell-in.

Because you are competing for customers from other vendors.
MS and Nintendo gain more from 30% cut, compared to royalty fee from the store sales.

 

[Three]

Because you are competing for customers from other vendors.
MS and Nintendo gain more from 30% cut, compared to royalty fee from the store sales.

What? The 30% they get from direct sales. With retailers acting like a broker they gain a lower percentage but the retailer gets the rest. You don't get a lower price.

 

[feynoob]

What? The 30% they get from direct sales. With retailers acting like a broker they gain a lower percentage but the retailer gets the rest. You don't get a lower price.

I get a lower price, because both of them want my money.

 

[OmegaSupreme]

 

[Three]

I get a lower price, because both of them want my money.

I don't get what on earth you're saying. You don't. You just said there is no incentive to set lower prices when I showed you you don't. They get it from the same digital store set price too.

 

[feynoob]

I don't get what on earth you're saying. You don't. You just said there is no incentive to set lower prices when I showed you you don't. They get it from the same digital store set price too.

Mate, there is no incentive to do that, when others don't offer digital keys.
Remember that is our main objective.

 

[Setsuna Mudou]

For the same reason Sony and everyone else sells physical copies w/ a margin for the retailer, and doesn't just sell them directly on their own stores.

(retailers provide marketing essentially, as people see your product)

Sony is taking away avenues for that because retailers are mattering way less for video games as we move into a digital era.

Which is their business; but it's also the business of governments to regulate... well, businesses.

I don't think they should get in trouble for this considering, well.. like iOS App Store exists; but it's a specific change in business practices that removed consumer choice that used to exist, and increased retail competition. edit: Actually, I think Apple does allow publishers to sell game download codes?

I think we're agreeing overall.

I was more curious about the implication feynoob made that somehow a digital item for PSN would be somehow cheaper if we have other resellers. I can't comprehend how that would at all be possible unless Sony somehow would make them a discount which strangely enough they wouldn't reflect on their own store.

Absolutely clear why it's a completely different equation for physical media, store shelve space, advertising, x y and z. But digital, makes absolutely no sense to me.

Unless somehow the other storefront managed to snag product keys through less legitimate means and is then selling them on the cheap. Am I missing something here?

 

[Setsuna Mudou]

I get a lower price, because both of them want my money.

Man, i'm following the argument here but I don't think it holds water.

The digital version of whatever game on PSN is owned by Sony. Regardless of store front, as T Three was saying, you are still bound to that particular platform, therefore you are still paying Sony for that product.
The argument you're putting forth would be more sound for physical goods, where indeed you can arrange some special deals to get people walking into your shop and potentially buying a few more things. Or maybe they are re-selling used copies of the game cheaper than the new ones.
I can't see any way you are getting cheaper digital goods for PSN from another shop unless they are a) taking a loss on it (why would they?) or b) they somehow stole those keys and can afford to sell them below cost.

Happy to hear of an alternative, but the numbers just don't add up.