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Obviously you have issues like resale potential (null for DLC, significant for railway modelling) and cost to produce and transport physical goods vs. digital delivery, but the truth is, what you lose by reselling a good physical model is usually more than the cost of a DLC featuring the same loco.
But we really should compare apples to apples. Computer games (excluding investment in hardware) are among cheapest forms of entertainment. A typical cost of 1 hour of gameplay is about $1, with short artsy indy games being a bit more expensive but providing more focused experience, and open world monsters a bit cheaper, but having more repetitiveness and grind.
So you could say that even if an AAA title costed $120 it would still be cheaper than going to cinema.
Ok, so we are playing this? ok then. why we dont use trainz sim is because skills are actualy involved into modeling a perfect layout and its more accepted, yes some use it on their mat but, in trainz sim you have to use the dlcs for differant track and just paste it down on a track, Done! Modeling has more skills involved, yes people do use this to make realy good routes, i do agree with that and not saying how this is dirt cheeper, it has its flaws, and if you have too much stuff on your drive, WHAT ABOUT NOW?
Running model trains gets old quickly, unless you have a huge layout and lots of trains - but then we're talking about thousands and thousands of dollars/euro.
I am catching up, because I spend hours expanding my garden layout and landscaping - though grabbing a beer in the evening and watching trains roll is nice too.