Interesting. Thanks for sharing.
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General Videogame Thread
- Thread starter blue banks
- Start date
Interesting. Thanks for sharing.
grunge
Well-Known Member
Can you tell me why digital copies cost so much, surely this would help prevent your CEX scenario, they should be at least 50% cheaper I know I’d but more if it was, otherwise I’ll wait a year and go CEX for a cheap copy, even years old games on digital are full price most of the time.
I've not really been involved in pricing and my console knowledge is outdated ( I took a shift from console to mobile a while back, and last few years have been non games ). but when I was involved around consoles it was all decided at Publisher/Hardware manufacture levels, I assume that is still the case. why digital is the same price as phyiscal I dont know to be fair, there are the server and online maintainance costs of store fronts etc but if that is on par with burning disks and distribution I cant say. and im not sure who, when its on a store, dictates what goes on sale or not.
speaking from Mobile and indie stuff the pricing is a careful consideration. some things seem quite counter intuitive. I know some Indie Dev's that put 1 game on for a few quid and as a test did a similar game and priced it at £15, while they got less sales at £15 they ended up making far more money from the smaller amount of sales.
BimboBob
Well-Known Member
Does happen in the music industry so what makes you special?that would be nice yeah. especially when they sell a 2nd hand copy for nearly the same price as a 1st hand copy.
grunge
Well-Known Member
Does happen in the music industry so what makes you special?
Which major retail chains have made a complete business model based on selling 2nd hand music? same CD over and over and over again?, at pretty much the same price as the original cost. And do you think Musicians are happy if they see major chain shops making profits on there albums being sold 2nd/3rd/4th hand?
Also, Music gets streaming costs ( amazon/Spotify ) , radio play costs, touring income, general licencing costs ( in games, tv, movies etc ) so have other revenue streams.
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BimboBob
Well-Known Member
Which major retail chains have made a complete business model based on selling 2nd hand music? same CD over and over and over again?, at pretty much the same price as the original cost. And do you think Musicians are happy if they see major chain shops making profits on there albums being sold 2nd/3rd/4th hand?
Also, Music gets streaming costs ( amazon/Spotify ) , radio play costs, touring income, general licencing costs ( in games, tv, movies etc ) so have other revenue streams.
Which major retail chains have made a complete business model based on selling 2nd hand music? same CD over and over and over again?, at pretty much the same price as the original cost. And do you think Musicians are happy if they see major chain shops making profits on there albums being sold 2nd/3rd/4th hand?
Also, Music gets streaming costs ( amazon/Spotify ) , radio play costs, touring income, general licencing costs ( in games, tv, movies etc ) so have other revenue streams.
2nd hand record shops have that business model.
You could include micro payments to maximise your profits. Its what everyone else does.
grunge
Well-Known Member
2nd hand record shops have that business model.
You could include micro payments to maximise your profits. Its what everyone else does.
most 2nd hand record stores are little independants, mostly selling collectables which no one will have any complaints about. Rather than an number of country wide chains all making a business from 2nd hand games and are on every highstreet going ( Granger/Game/CEX etc etc ). there is a reason lots of Dev's are doing there best to block 2nd hand sales and go digital.
Thats pretty much where the last 3 games I've worked on have been, all mobile ecosystem, all micropayment based.
Northernstorirs
Well-Known Member
- Joined
- 16 Oct 2018
- Messages
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2nd hand record shops have that business model.
You could include micro payments to maximise your profits. Its what everyone else does.
Correct. Records on ebay and in record shops resale for a hefty price.
Games are expensive and I completely understand the cost involved as games can take years to produce. The price is also justifiable when you end up playing 50 hours +, there's a lot of value in that. I don't see the issue with games being resold, what if as a consumer you really can't get in to a game? Surely reselling the game is reasonable?
A lot of music artists have accepted that their main revenue stream is from tours. Streaming raises very little revenue, think it's something daft like .001p per play.
grunge
Well-Known Member
Correct. Records on ebay and in record shops resale for a hefty price.
Games are expensive and I completely understand the cost involved as games can take years to produce. The price is also justifiable when you end up playing 50 hours +, there's a lot of value in that. I don't see the issue with games being resold, what if as a consumer you really can't get in to a game? Surely reselling the game is reasonable?
A lot of music artists have accepted that their main revenue stream is from tours. Streaming raises very little revenue, think it's something daft like .001p per play.
Its a bit of a moot point to be honest now everything is going digital.
but its not individuals selling games that is an issue. its was companies like game/Gamestation/CEX making £100's of millions in profit selling 2nd hand games while Dev companies go bust all over the show.
this for example, example figures from memory.
-1st sale = cost £50 to consumer, Game gets £15 Quid. platform holder gets £7, Publisher gets £27, game dev gets £8 from that £27 assuming the publisher has made there money back. there are some other misc costs in there to get it to £50 of the original costs.
-Game buy it back a few days later for £20
-Game sell it again for £45, actively pushing people to buy the 2nd hand ones over new ones as it makes them more money.
-Game by it back later for £10
-Game sell it again for £35.
Game profits = £65,
Publisher profits = £27
Dev profits maybe = £8.
Sony/MS/Nintendo = £7
I've heard back in the day of the same disk being sold 5 times making those values skew higher to Game.
It was a poisonous model of business as it was literally biting the hand then fed them. it was only a matter of time before the big hardware manufacturers / and publishers bit back.
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Northernstorirs
Well-Known Member
- Joined
- 16 Oct 2018
- Messages
- 1,216
Its a bit of a moot point to be honest now everything is going digital.
but its not individuals selling games that is an issue. its was companies like game/Gamestation/CEX making £100's of millions in profit selling 2nd hand games while Dev companies go bust all over the show.
this for example, example figures from memory.
-1st sale = cost £50 to consumer, Game gets £15 Quid. platform holder gets £7, Publisher gets £27, game dev gets £8 from that £27 assuming the publisher has made there money back. there are some other misc costs in there to get it to £50 of the original costs.
-Game buy it back a few days later for £20
-Game sell it again for £45, actively pushing people to buy the 2nd hand ones over new ones as it makes them more money.
-Game by it back later for £10
-Game sell it again for £35.
Game profits = £65,
Publisher profits = £27
Dev profits maybe £8.
I've heard back in the day of the same disk being sold 5 times making those values skew higher to Game.
It was a poisonous model of business as it was literally biting the hand then fed them. it was only a matter of time before the big harware / publisher bit back.
Fair point, it's a tough one to manage.