Anyone else think it's total BS that it cost the same to buy - Page 3 - TigerDroppings.com

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ZTiger87
LSU Fan
Member since Nov 2009
11399 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

eta: stores also mark up to make a profit, so by eliminating the middle man (store), it would only be natural to assume the cost would be lower.


Exactly. Retailers take a 20-25% cut of the game sale. And it's another 5% cost to manufacture and ship the game. Digital copies also eliminate the used game "problem" that companies have. So you would think that cutting out those costs would lower the price of the game. It's the same shite with e-books too.






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jcole4lsu
Virginia Fan
The Kwisatz Haderach
Member since Nov 2007
26619 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

I pass on a lot of cool looking games simply because I don't feel like spending $60 on a game.


i rarely, if ever, pay retail for a game. only if i know its going to be fantastic and that must come from a gamer, not a rag.
thats one thing about digital pc games, networks like steam will drop prices pretty aggressively and you can get 3 games for the price of one. this pretty much acts as the used game market for digital, seeing that the developers profits are greatly reduced (assuming they get a % of each sale after the game has had a price drop).

another key component to this discussion is exactly what is the agreement between the developer and the retailer, and how different is said agreement between different entities.






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BTHog
Arkansas Fan
Member since Jul 2012
8335 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

another key component to this discussion is exactly what is the agreement between the developer and the retailer, and how different is said agreement between different entities.


Now that's a fair point. It isn't hard to imagine that a retailer the size of Wal Mart forces companies to not sell their products cheaper elsewhere if they want to continue selling them at wal mart, and I don't think any publisher could afford to do without wal mart at this point.






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ZTiger87
LSU Fan
Member since Nov 2009
11399 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:


used game sales proceeds goes to the retailer, not the developer, there by rendering this statement:


He's saying that digital games eliminate/reduce the used game market, so it's another reason to reduce the pricing.

quote:

They're cheaper on PSN for nearly all vita games. 10% off.


Don't you have to preorder and be a part of PS+? I think I remember reading about that a few months ago.






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jcole4lsu
Virginia Fan
The Kwisatz Haderach
Member since Nov 2007
26619 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

Retailers take a 20-25% cut of the game sale

retailers generally buy physical goods at a wholesale price and then mark it up. thats not the same as "taking a cut". what you just described was basically a consignment.

quote:

And it's another 5% cost to manufacture and ship the game

link?

quote:

Digital copies also eliminate the used game "problem" that companies have

and?
digital games also get put on sale more often via services like steam

quote:

So you would think that cutting out those costs would lower the price of the game. It's the same shite with e-books too

more nonsense that keeps getting repeated.






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jcole4lsu
Virginia Fan
The Kwisatz Haderach
Member since Nov 2007
26619 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

He's saying that digital games eliminate/reduce the used game market, so it's another reason to reduce the pricing.



so a supplier finds a way to increase profitability and you expect them to turn around and do something that then decreased profitability? seriously?

top tier games have been $60 forever. they havent increased in price with inflation like many other goods have. the advent of digital and the reduction of used games is finally adding something positive to the studio's margin - i promise you they have no intention of reducing that.







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Brettesaurus Rex
New Orleans Saints Fan
Baton Rouge
Member since Dec 2009
21806 posts

re: Anyone else think it's total BS that it cost the same to buy


Why wouldn't it be? All you're getting is a downloaded version of the game and no insurance in case your Xbox gets wiped out. Download versions need to be 49.99 IMO. Costs then nothing to distribute





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taylork37
Ohio State Fan
The social pipeline
Member since Mar 2010
9833 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

so a supplier finds a way to increase profitability and you expect them to turn around and do something that then decreased profitability? seriously?


No....its an incentive to get the digital download trend moving to reduce used game sales which would then potentially increase profits for those companies.

For the most part I think we all understand that a company wants to maximize profits and has a right to do so. At the same time, its absolutely reasonable to ask if that savings can be passed to the consumer. Not sure how that is so unheard of.

And as someone pointed out...the markup by the retailer is eliminated with DD. You still have costs associated with bandwidth, but I would assume those are relatively small.






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taylork37
Ohio State Fan
The social pipeline
Member since Mar 2010
9833 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

All you're getting is a downloaded version of the game and no insurance in case your Xbox gets wiped out


you can re download any previously bought game on any system FWIW






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jcole4lsu
Virginia Fan
The Kwisatz Haderach
Member since Nov 2007
26619 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

its an incentive to get the digital download trend moving

I'd say Steam and Origin have shown the model is actually preferable - especially to PC gamers.

quote:

For the most part I think we all understand that a company wants to maximize profits

obviously not if this thread is any indication. posts such as "their cost went down so their price should go down" prove this type of ignorance.
to be clear, that comment isnt directed towards you.
quote:

the markup by the retailer is eliminated with DD

that depends on the provider of content. Steam purchases non valve games at wholesale and resells them at retail.

look at it this way: if you buy a part (say a replacement part for your computer) directly from Dell, do you expect it to be cheaper than if you bought the same part from Newegg? if so, would you be shocked to learn that newegg is usually cheaper?







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BTHog
Arkansas Fan
Member since Jul 2012
8335 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

f you buy a part (say a replacement part for your computer) directly from Dell, do you expect it to be cheaper than if you bought the same part from Newegg? if so, would you be shocked to learn that newegg is usually cheaper?


Actually this is the EXACT model RockAuto has used to become uber succesful in the car parts business.

They sell direct from the manufacturer and have no warehouses and no middlemen and yes they pass those savings on to customers, without fail their prices are less than competing brick and mortar stores.







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taylork37
Ohio State Fan
The social pipeline
Member since Mar 2010
9833 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

obviously not if this thread is any indication. posts such as "their cost went down so their price should go down" prove this type of ignorance.
to be clear, that comment isnt directed towards you.


At the same time like I said it isn't unheard of to past savings to the consumer. Expecting all savings to be past to consumer is asinine, but that has led to our "reasons they should/shouldn't pass those savings down" debate. Which I think is worth the debate.

quote:

that depends on the provider of content.


Then PS3 360 would be a good example. The markup by retailers for 1st party games is completely gone with DD.

quote:


if you buy a part (say a replacement part for your computer) directly from Dell, do you expect it to be cheaper than if you bought the same part from Newegg?


Not at all



This post was edited on 3/15 at 3:17 pm


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jcole4lsu
Virginia Fan
The Kwisatz Haderach
Member since Nov 2007
26619 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

Actually this is the EXACT model RockAuto has used to become uber succesful in the car parts business.

well i have never heard of RockAuto






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jcole4lsu
Virginia Fan
The Kwisatz Haderach
Member since Nov 2007
26619 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

Then PS3 360 would be a good example. The markup by retailers for 1st party games is completely gone with DD.


need to keep in mind that Sony and Microsoft lose money on the consoles for a good time period, so eliminating the retail side may be a necessary step in the business plan.

its not like EA or Valve is manufacturing computers en masse.






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BTHog
Arkansas Fan
Member since Jul 2012
8335 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

well i have never heard of RockAuto


And who the hell has heard of TigerDirect? Oh yeah computer nerds.

But in their respective industries they are both successful.







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taylork37
Ohio State Fan
The social pipeline
Member since Mar 2010
9833 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

need to keep in mind that Sony and Microsoft lose money on the consoles for a good time period, so eliminating the retail side may be a necessary step in the business plan.



You said it tho...the goal is to maximize profits..I doubt that the move to DD is specifically to offset console costs. I mean we can guess...






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jcole4lsu
Virginia Fan
The Kwisatz Haderach
Member since Nov 2007
26619 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

.the goal is to maximize profits..I doubt that the move to DD is specifically to offset console costs.

those two would go hand in hand though.

the OP's original assertion was wrong on two levels:
1) the market, not costs, control the price of this product
2) he fails to take into consideration the game company's margins and reasons for not lowering the cost of the goods. the over simplification of "it costs less to make, it should cost less to buy" has clouded many poster's opinions on this.

we can argue over the finer points all you want, but the above two statements renders the OP false.






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dcrews
UNO Fan
Baton Rouge
Member since Feb 2011
7849 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

Well you do not have to pay tax.


We're actually supposed to, but nobody does






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RougeTiger
LSU Fan
The Field, LA
Member since Sep 2009
1384 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:

Paying for convenience.



The convenience of not being able to just take it to your friends house or playing it on as many different systems as you desire?

No thanks--I never buy digital products. Such a rip.

Unless I have no choice



This post was edited on 3/15 at 5:20 pm


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tom
Baton Rouge
Member since Jun 2007
3078 posts

re: Anyone else think it's total BS that it cost the same to buy


quote:


The convenience of not being able to just take it to your friends house or playing it on as many different systems as you desire?





You can do both of those things with any of the major PC distributors.






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