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Re: what about the future?
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Re: what about the future?
FWIW: http://www.next-gen.biz/features/val...-too-expensive
"Discounting games does not only increase unit sales--it increases actual revenues. During the 16-day sale window over the holidays, third-parties were given a choice as to how severely they would discount their games. Those that discounted their games by 10 percent saw a 35% uptick in sales--that's dollars, not units. A 25 percent discount meant a 245 percent increase in sales. Dropping the price by 50 percent meant a sales increase of 320 percent. And a 75 percent decrease in the price point generated a 1,470 percent increase in sales." Of course, it helps if people actually know you exist, (ie, Steam has a much higher profile than Shrapnel) - that's where advertising comes in. |
Re: what about the future?
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Also, these games were featured on their front page. What they don't say is that any game on their front page does great. That when it drops from the front page, its sales are much, much weaker. So was it the sale, the announcement of upgrade, or the front page? |
Re: what about the future?
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A computer game's lifespan is 5 years at the most. Only the most exceptional games hit 10+ (eg, Starcraft). So when you start off by asking questions like 'Why is it so hard for normal boardgames to stay in production' or 'why do RPG companies go out of business', you're asking entirely the wrong questions. You need to keep producing new products that will bring back older customers as well as be accessible to new customers. This explains why Magic the Gathering is still going strong some 17 years after starting. Or why WotC chose the publication structure it did for D+D 4e (every year sees a new set of core books), and why a 5th edition is inevitable. Dom3 is already past the expected lifetime. It shouldn't be expected to generate any sales at all, especially at full price, and that it does should be regarded as miraculous. |
Re: what about the future?
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Question is, does the lower price help? Or the fact that it was expensive before and is now on sale? What works for Valve doesn't have to work for a small developer. You can only do this if your potential consumer base is already large enough. Advertisement is pretty hard you know. Ps, incoming Jeff Vogel fanboyism :D http://jeff-vogel.blogspot.com/2009/...-big-sale.html "So the only real moral of the story is that people like sales. Not a shock." http://jeff-vogel.blogspot.com/2009/...more-pt-2.html ""If You Charged Less, You Would Sell More Copies" This is true. The problem is that I won't sell enough more to justify the lower prices. Microeconomics tells us that as we charge less, we sell more, but we make less per sale. At some point, there is a best price, a point where (number of sales) * (profit per sale) is at its maximum. The question is, where is it? Based on my experiences shifting prices up and down, I think I'm actually at the sweet spot." http://jeff-vogel.blogspot.com/2009/...more-pt-1.html "Now don't get me wrong. Some games (casual quickies, simple puzzle games) should be inexpensive. But everyone (retailers, reviewers, customers) is enabling a mindset where all games, even the niche products and larger, deeper, less casual titles, are expected to be desperately cheap. This is not going to help developers stay in business. This is not how a healthy industry is maintained." |
Re: what about the future?
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Re: what about the future?
Publicity is free (except of course for having a publicist to do it). Dom3 and new Shrapnel games appear in nearly every online gaming magazine or review site almost instantly.
Advertising costs money. Someones money. Usually the publisher. Thats one of the complaints of indies who leave big publishers for smaller ones. The advertising and other fancy features put them in a hole. It can take 1 or 2 years to payback the startup costs and start seeing profit as actual paychecks. Not to mention the so often mentioned "sales bins" that many of the pushers for the Shrapnel going the other way tend to add as something they would wait for. Those are efforts of the distributor and sometimes the publisher to recoup their costs and break even. Often happening before the profit point which means the devs see nothing. ONE of the apparent advantages of Shrapnel to indy developers is almost instantly splitting sales. Ive seen some of the developers do ads for their own games but generally Im not sure where you would do it for Dom3. If you can think of one, let me know. Id be willing to look into it. (But Im still holding out for a tshirt concession) |
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Unrelated, how is dnd 4ed selling? Quote:
Otherwise where is nothing in conventional economics saying why prices should drop. Sure there is a method to slowly get the most out of the costumers by gradually dropping the prices, but that only works in certain situations, cant recall which exactly, and to lazy to look it up in my economy books. But supply vs demand doesn't apply in this case, as supply is rather infinite. Boardgames also don't gradually drop in prices, and when they do, it is because the shops need the shelve space. The idea that games should drop in prices is because you expect them to do, because it is supposed to be normal. Not because it makes economic sense. Ps: regarding the lower prices. Never forget that this could be a business ploy. Lower pricing to drive the competition with lesser deep pockets out of business. (I'm paranoid anti-corporate, it is my Shadowrun heritage). Valve playing themselves off as the less greedy friendly corp, while crushing the competition. --- Edit: Perhaps there now is a better version, if Elements gets improved. Edit2: I think the economics theory is related to different adopters of products. See: http://en.wikipedia.org/wiki/Diffusi...ter_categories |
Re: what about the future?
Gandalf, that is why Indies have created other ways of creating buzz and publicity. Such as blogs etc.
See: http://www.pixelprospector.com/indev...business-tips/ |
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