Those expenses have been paid by the first buyer.
While this is logically correct,the problem is,to a certain time progression(1 to 3 months)the supposed copy sales will be reduced to less copies for more users(take for example 6 users using 3-4 copies instead of the target 6 copies sales,that the whole whining from the publishers,and one of the reasons of why Gamestop should be regulated).
The idea is good, but most of the time it really doesn't make so much difference. And after a couple of months the physical copy will be cheaper because prices in an online platform mostly don't go down as quickly.
Agreed,hence one my plans for game distribution,however it will only work on the next gen of consoles,allow me to elaborate:
During the last 10-15 years videogame formats have used(and still uses) generic data storage spaces(like CD,DVD,however few exceptions like Nintendo's formats and UMD format),but PC distribution have been linked to the online distribution since about 20 years ago(think about times of the original Doom),one of the reasons why PC online distribution works its because the flexibility of data storage,hence one of the basis for my idea(and probable massive failure).
If the user is allowed to storage the data in any way he/she wants,then the usage of a physical copy can be eliminated,and,if the user do not feel right without having physical copy then he/she should be allowed to storage the data(burn a disk for example)in any format she/her wants.
This will mean that future generation consoles should be provided not only by an acceptable HD space,but they should be also equipped with a disk burner(hence the first problem of the idea,this will increase production costs for the console and potential piracy,copies burned by the user should be tagged to be burned once,and it gets massively complicated from there).
For the publisher this will represent less production costs,because the physical copy costs have to be managed by the user,meaning that the only costs handed to the publisher will be development costs and network distribution maintenance(more costs are obviously overlook here),this will also mean that the shipping and distribution cots will no longer be handed by the user(shipping costs will be taken out all together)and games can see a drastic pricing reduction(this is just surface mathematics)from 30 to 40 percent of the costs of a physical copy.
I'm completely sure that there is a ton of flaws with this method of distribution,but seeing brand new games at 35 USD(probably) its not that unreachable either,I know that this might not be the ultimate solution but I'm pretty sure that the solution for the issue relays on online distribution.