[Tim Brooks]

Hi All:

Great thread! Sorry it has taken me so long to see it. Hope you don't mind if I post here and give you Shrapnel's take on marketing the Space Empires franchise...

If Shrapnel and Malfador could aford to take out an add in just one game magazine highlighting all the games they offer, then sales would increase.

Did you know that most of the major mags want $15,000 to $18,000 for a one page ad? The key here is what will that 18 grand buy you? It is a known fact that advertising has changed in the Last 15 years. Where advertising used to mean quick dollars, it is now more of a way to brand a company - create name brand awareness. Gone are the days of running an ad and waiting for the dollars to role in. The advertising industry says that people must see an ad 3-4 times before it gains recognition (there is alot out there competing for their attention). That's alot of money. I have been told by major publishers that they wouldn't advertise in the Gaming mags, if it wasn't a requiremnt for getting your games into retail stores. We ran a full page ad in one of the magazines in 2001 and guess what? We didn't even see an increase in site traffic! It would take many ads over many months for this to pay off and that is just too expensive.

Now, speaking of retail stores. The problem with traditional electronics retail is the short shelf life our games would have in these stores. If you don't sell 100,000 copies in a month, then you are going to be discounted (the major retailers use a powerful ploy- either cut our cost in half or take back all the product that hasn't sold). The next thing you know you are in the bargain bins - the average time a game remains at full retail in the major chains is somewhere under 45 days. Now you have a franchise that is considered 'discount'. Who here thinks that SEIV is a discount title?

Now you may ask why wouldn't SEIV sell 100,000 units at retail? That is simple. Look at what it is competing with. Most games at retail have simplified game play and $1 million graphics budgets. The key to selling SEIV is the ability to set down with a demo and see all it has to offer. You can't do this at retail. You have to get your sales off the pictures on the back of the box - it has to be eye candy intensive. The retail shops have no way for you to 'try before you buy'. Plus the 'average' retail chain store gamer is looking for, shall we say, less challenging gameplay. They don't want to work too hard at figuring out how to make things happen. In other words, the gaming masses aren't going to buy SEIV in its current incarnation. It would need to be made simpler. Less not more. Raise our hand if that is what you want?

Now I haven't even mentioned the shelf space buys, the catalogue buys, and all the other expensive ways that the retailers actually use to make money. Do you want you game spine out on the shelf or face out (face out costs money). Do you want to be on the new release shelf (more money). If you do pay this money then you have to make sure you are getting what you paid for. Ubisoft employs people to go around to the retailers and make sure they are actually face out on the shelfs (do you really think the high-school kid that is stocking the shelves cares one bit whether the game is face out - after all he doesn't make any more money for doing this).

Okay, we'll take your game on - just buy this one page ad in our catalogue - only $20,000.

Oh, you don't want any of these things. Well, we will still take it on, but now we have to buy it at $17.95 - that means the publisher has to sell it to distribution for under $15.00. Oh and you want 3 months before you pay us, and you will only pay for those games that sold. Not all that you ordered. And what is this, you hold 20% back for returns and allowances. Great deal!

The pure fact is that it is hard to make money at retail. The big publishers lose money on 80-90% of their titles. The key is: one hit and you're Golden. But, and here is the catch, no 'hardcore' strategy game will ever be Golden at retail.