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re: Anyone else think it's total BS that it cost the same to buy
Posted on 3/15/13 at 2:06 pm to TogaParty
Posted on 3/15/13 at 2:06 pm to TogaParty
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.
1
Posted on 3/15/13 at 2:08 pm to BTHog
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.
Posted on 3/15/13 at 2:11 pm to jcole4lsu
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.
Posted on 3/15/13 at 2:11 pm to jcole4lsu
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.
Posted on 3/15/13 at 2:11 pm to ZTiger87
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.
Posted on 3/15/13 at 2:15 pm to ZTiger87
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.
Posted on 3/15/13 at 2:55 pm to FleurDeLonestar
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
Posted on 3/15/13 at 3:02 pm to jcole4lsu
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.
Posted on 3/15/13 at 3:03 pm to Brettesaurus Rex
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
Posted on 3/15/13 at 3:10 pm to taylork37
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?
Posted on 3/15/13 at 3:15 pm to jcole4lsu
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.
Posted on 3/15/13 at 3:16 pm to jcole4lsu
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 3/15/13 at 3:17 pm
Posted on 3/15/13 at 3:17 pm to BTHog
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
Posted on 3/15/13 at 3:19 pm to taylork37
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.
Posted on 3/15/13 at 3:20 pm to jcole4lsu
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.
Posted on 3/15/13 at 3:24 pm to jcole4lsu
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...
Posted on 3/15/13 at 3:41 pm to taylork37
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.
Posted on 3/15/13 at 4:30 pm to bigpetedatiga
quote:
Well you do not have to pay tax.
We're actually supposed to, but nobody does
Posted on 3/15/13 at 5:17 pm to FleurDeLonestar
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 3/15/13 at 5:20 pm
Posted on 3/15/13 at 5:42 pm to RougeTiger
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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