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Why do companies think it's a good idea ?
(thelemmy.club)
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Because they won't be forced to lower the sale pricenin proportion with the lowered production cost.
We sold our futures for magic beans when we decided it was "fair" for a store to charge paying customers extra to cover losses incurred from theft.
Development costs are much bigger of an issue than production costs. Physical media disappearing changes nothing about this.
Since you seem to need someone to spell it out for you: the point is that they're doing it because they won't be charging any less. And you're almost right; devopment costs don't affect production costs very much at all.