You can buy a spindle of blank CDs/DVDs, which breaks down to like $0.25 US. When they're being made by the 1000's, it only gets cheaper. Remember, the big cost is development and marketing/advertising. To release the game on an SD card would be much more expensive. Not only that, but having an SD card reader is not a standard part of computers nowadays. It would be neat as a collectors edition type of thing, but not as a replacement for CDs/DVDs.
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