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DeMartini goes on to add: “Also what Steam does might be teaching the customer that “I might not want it in the first month, but if I look at it in four or five months, I’ll get one of those weekend sales and I’ll buy it at that time at 75 percent off.”
YellowKing wrote:People did that before Steam. I'm not going to argue that Steam doesn't make it easier for folks to hold out, but it's not like Steam is the first entity to discount old PC games.
tgb wrote:YellowKing wrote:People did that before Steam. I'm not going to argue that Steam doesn't make it easier for folks to hold out, but it's not like Steam is the first entity to discount old PC games.
No, but they were the first, probably, to discount relatively new ones. It used to take a year or more for titles to hit the bargain bin in B&M stores.
Chaz wrote:I'm not convinced that EA as a company is worse than Activision.
I'm waiting for when publishers figure out that there are price points other than $60. Your potential market for games at $60 is always going to be limited. If you start releasing games at lower prices, you open up to a whole mess of price-conscious buyers.
tgb wrote:$60 is a more common price point for console games than PC games. Other than Diablo 3, Skyrim, and Kingdom of Amular, what other mainstream titles have come out recently at that price? $40-$50 is more the norm, and $30 is becoming more and more common.
Chaz wrote:I'm not convinced that EA as a company is worse than Activision.
I'm waiting for when publishers figure out that there are price points other than $60. Your potential market for games at $60 is always going to be limited. If you start releasing games at lower prices, you open up to a whole mess of price-conscious buyers. Yes, your per-unit revenue will be lower, but the idea is that it's possible to make that up in volume. Something that the Steam sales have actually borne out.
stessier wrote:Chaz wrote:I'm not convinced that EA as a company is worse than Activision.
I'm waiting for when publishers figure out that there are price points other than $60. Your potential market for games at $60 is always going to be limited. If you start releasing games at lower prices, you open up to a whole mess of price-conscious buyers. Yes, your per-unit revenue will be lower, but the idea is that it's possible to make that up in volume. Something that the Steam sales have actually borne out.
You would think EA would have already figured it out. Remember the last NFL 2k? It went on sale for 29.95 and EA went nuts because it had to discount Madden. As I recall, both still sold really well. It stuns me that they learned nothing from this (except, of course, to make sure their future licenses were exclusive).
tgb wrote:YellowKing wrote:People did that before Steam. I'm not going to argue that Steam doesn't make it easier for folks to hold out, but it's not like Steam is the first entity to discount old PC games.
No, but they were the first, probably, to discount relatively new ones. It used to take a year or more for titles to hit the bargain bin in B&M stores.
Zaxxon wrote:tgb wrote:$60 is a more common price point for console games than PC games. Other than Diablo 3, Skyrim, and Kingdom of Amular, what other mainstream titles have come out recently at that price? $40-$50 is more the norm, and $30 is becoming more and more common.
Aside from that, Mrs. Lincoln, how was the show? You can't discount the data that you don't like. To name some other recent ones at $59: Call of Duty 2012 R2 June Edition Mk II, Max Payne 3, Kingdoms of Amalur, Assassins Creed: Revelations, ARMA, etc. Tier-1 releases release at $49.99 - $59.99, almost without exception.
tgb wrote:One other point re Steam: The other argument that EA (and others of that ilk) make is that used games are killing the market. The advent of Steam and other digital distribution services effectively put an end to used PC game sales.
GreenGoo wrote:
Anything which doesn't directly put money in their pocket at what they've decided to be the "correct" price point is killing the industry.
TiLT wrote:I haven't got anything constructive to say, but I'll say this: I just love that not a single person in this thread has bothered to get the name of EA's online store, Origin, right.
And that kind of thinking is exactly why Steam will continue to outperform the Origins and other developer-housed digital distribution platforms.
tgb wrote:
More games came out at the $60 point back in the heyday of Origin, 20 years ago. What other industry has seen the average price of a consumer good drop over the last 20 years? Granted, the distribution system is radically different, but still.......
I don’t hold myself separate from this; I don’t like paying $60 either but the fact remains that I get more value out of $60 of games than I do out of $60 of movies.
Newell wrote:Now we did something where we decided to look at price elasticity. Without making announcements, we varied the price of one of our products. We have Steam so we can watch user behavior in real time. That gives us a useful tool for making experiments which you can’t really do through a lot of other distribution mechanisms. What we saw was that pricing was perfectly elastic. In other words, our gross revenue would remain constant. We thought, hooray, we understand this really well. There’s no way to use price to increase or decrease the size of your business.
But then we did this different experiment where we did a sale. The sale is a highly promoted event that has ancillary media like comic books and movies associated with it. We do a 75 percent price reduction, our Counter-Strike experience tells us that our gross revenue would remain constant. Instead what we saw was our gross revenue increased by a factor of 40. Not 40 percent, but a factor of 40. Which is completely not predicted by our previous experience with silent price variation. …
Then we decided that all we were really doing was time-shifting revenue. We were moving sales forward from the future. Then when we analyzed that we saw two things that were very surprising. Promotions on the digital channel increased sales at retail at the same time, and increased sales after the sale was finished, which falsified the temporal shifting and channel cannibalization arguments. Essentially, your audience, the people who bought the game, were more effective than traditional promotional tools. So we tried a third-party product to see if we had some artificial home-field advantage. We saw the same pricing phenomenon. Twenty-five percent, 50 percent and 75 percent very reliably generate different increases in gross revenue.
Bakhtosh wrote:And they are very rarely as well tested before release as games used to be.
Lordnine wrote:tgb wrote:
More games came out at the $60 point back in the heyday of Origin, 20 years ago. What other industry has seen the average price of a consumer good drop over the last 20 years? Granted, the distribution system is radically different, but still.......
That’s actually a good point that I don’t think many people consider. Games cost more to produce now than ever before. In some cases they cost more than big budget Hollywood movies. Everything else we purchase has gone up in price yet games have mostly stayed the same.
Zaxxon wrote:Lordnine wrote:tgb wrote:
More games came out at the $60 point back in the heyday of Origin, 20 years ago. What other industry has seen the average price of a consumer good drop over the last 20 years? Granted, the distribution system is radically different, but still.......
That’s actually a good point that I don’t think many people consider. Games cost more to produce now than ever before. In some cases they cost more than big budget Hollywood movies. Everything else we purchase has gone up in price yet games have mostly stayed the same.
I keep seeing this argument, and I don't know where it comes from. 20 years ago, games in the USA did not cost $60. They just didn't. I can remember the days of yore when we'd go buy the latest Sierra On-line game for $39. NES games cost $39 or $49. SNES games cost $39 or $49. Genesis games, the same. Your average shareware title went for $15-$35. I'm fairly certain that the only game I've ever paid $59 for is StarCraft II, and I've bought 3.4 shit-tons of games in my lifetime. Now granted once you adjust for inflation, the effective prices haven't risen and have in fact come down. But I don't think anyone here was talking about inflation-adjusted pricing, but rather were saying that games actually cost $60. That's not true.
tgb wrote:I didn't say all - I said more than today. I also was talking about PC games so bringing up Genesis or NES games is disingenuous. And Sierra games were $49.95 more often than not.
Zaxxon wrote:Even if it's true that Steam is the death knell of $60, massive budget games (and clearly I don't think it is), I'd welcome that. I'd much rather have a gaming future filled with small- and mid-budget development houses selling me appropriately-priced, quality games.
What other industry has seen the average price of a consumer good drop over the last 20 years? Granted, the distribution system is radically different, but still.......
Lordnine wrote:That’s actually a good point that I don’t think many people consider. Games cost more to produce now than ever before. In some cases they cost more than big budget Hollywood movies. Everything else we purchase has gone up in price yet games have mostly stayed the same. They also provide more entertainment in hours per dollar than movies. Why are people so hesitant to pay full price?
I don’t hold myself separate from this; I don’t like paying $60 either but the fact remains that I get more value out of $60 of games than I do out of $60 of movies.
TiLT wrote:and Outpost (things beyond your control could make the game unwinnable/unplayable, the game was filled with bugs, and it lacked features that were written on the box).
Zaxxon wrote:I keep seeing this argument, and I don't know where it comes from. 20 years ago, games in the USA did not cost $60. They just didn't. I can remember the days of yore when we'd go buy the latest Sierra On-line game for $39. NES games cost $39 or $49. SNES games cost $39 or $49. Genesis games, the same. Your average shareware title went for $15-$35. I'm fairly certain that the only game I've ever paid $59 for is StarCraft II, and I've bought 3.4 shit-tons of games in my lifetime. Now granted once you adjust for inflation, the effective prices haven't risen and have in fact come down. But I don't think anyone here was talking about inflation-adjusted pricing, but rather were saying that games actually cost $60. That's not true.
Zaxxon wrote:tgb wrote:I didn't say all - I said more than today. I also was talking about PC games so bringing up Genesis or NES games is disingenuous. And Sierra games were $49.95 more often than not.
And I'm saying I can't remember a single game that cost $59 prior to the 2000s.
As to Sierra, they had a wide range--not everything they published was King's Quest VI.
GreenGoo wrote:Excellent post
Smoove_B wrote:I want to say that I paid $60+ in 1996 for Daggerfall. I am looking for the box to see if I slipped the CompUSA receipt inside, but it's not in an obvious spot. I also clearly remember paying $80+ for some type of SNES RPG back in the early 1990s and I'm nearly certain all of the console games were $59+.

Smoove_B wrote:Now if they could only hold the same opinion of their customers we might be in a different position.
Smoove_B wrote:The point for me is that "back in the day" when I had no money and very little disposable income, I'd always end up paying ~$50 for a new game. Some were good; some were total duds. Not unlike the CD industry where I was paying $19.99+ to get a new release back in the early 1990s only to find it was one good song and nine fillers, eventually I stopped buying new music...and new games. Now that I have disposable income up to my ears, I remember the lessons learned during my golden-era of gaming. And if I have $60 to spend generally speaking I'm going to look to get as much gaming as I can -- which usually means buying more than one game - whether that's because it's been intentionally priced lower or on the 30 day discount plan. For years I'd scour the store shelves looking for sales but I honestly don't remember the last time I was in a GameStop (or where ever) actually looking at retail boxes. Not only is their selection severely limited, when you add in my time, they cannot compete with GOG or STEAM.
I'm glad EA thinks so highly of their "intellectual property". Now if they could only hold the same opinion of their customers we might be in a different position.
LordMortis wrote:Smoove_B wrote:Now if they could only hold the same opinion of their customers we might be in a different position.
Not only this but if they had treated their customer base as any sort of asset for the last twenty years. I was finished with them a long time ago and letting them go sucked.
I remember when they put out the budget conscious $20 classics that came in those thin cardboard cases like Mail Order Monsters, Seven Cities of Gold, and Age of Adventure (which gave you two games for $20). They were by far my favorite company then and I considered their titles synonymous with quality. Oh, how the times changed. Now those were my rose colored glasses.
Zaxxon wrote:Metacritic and its ilk bringing greater transparency to game quality? iOS/Android games that often provide as much entertainment as a traditional $60 game, but for a buck or three?
Smoove_B wrote:I want to say that I paid $60+ in 1996 for Daggerfall. I am looking for the box to see if I slipped the CompUSA receipt inside, but it's not in an obvious spot. I also clearly remember paying $80+ for some type of SNES RPG back in the early 1990s and I'm nearly certain all of the console games were $59+. I also think I paid $60+ for Ultima IX back in '99, however until I upgraded my computer a year later (and the game was patched) it was completely unplayable.
Last night I finished Prototype 2 and the credits ran for close to 10 minutes. If they had to pay everyone listed, they couldn't have possibly sold enough copies.
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