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re: Anyone else think it's total BS that it cost the same to buy
Posted on 3/16/13 at 4:00 pm to jcole4lsu
Posted on 3/16/13 at 4:00 pm to jcole4lsu
quote:
You are making alot of assumptions on pricing.
What kind of assumptions?
quote:
Look what happened with ea, think they were ready for the simcity release? That was lack of bandwidth and tech dept was overwhelmed
What happened with SimCity and D3 at launch is not comparable. Those games require internet connections in order to play. It also wouldn't surprise me if both of those games were intentionally launched with fewer servers as a cost saving method.
1
Posted on 3/16/13 at 4:24 pm to ZTiger87
quote:
What kind of assumptions
assumptions re: digital delivery costings as well as overall product costs.
none of which matter. we have gotten into an awful lot of detail which should have never even been delved into (which is partially my fault).
the OP's question is basically: The cost to produce the game went down, so why has the price stayed the same?
the answer - which should have been and now is a /thread moment: reduction in production costs does NOT equate to a reduction in price point.
free market economic principle are really not that hard to understand folks.
Posted on 3/16/13 at 5:23 pm to jcole4lsu
I totally get that. If the game developer or whoever wants to make a little more off digi downloads by charging the same price, it is what it is. They are in business to make money.
I was just trying to convey the point that just because there are no physical components to a digital download (compared to a physical copy), that doesn't necessarily mean all other costs to get the game to the customer are the same or cheaper. I digress.
I was just trying to convey the point that just because there are no physical components to a digital download (compared to a physical copy), that doesn't necessarily mean all other costs to get the game to the customer are the same or cheaper. I digress.
This post was edited on 3/16/13 at 5:24 pm
Posted on 3/16/13 at 8:46 pm to jcole4lsu
quote:
assumptions re: digital delivery costings as well as overall product costs.
But they aren't assumptions. Do a little research.
quote:
the OP's question is basically: The cost to produce the game went down, so why has the price stayed the same?
No, his question was
quote:
Anyone else think it's total BS that it cost the same to buy
Posted on 3/16/13 at 9:42 pm to TogaParty
quote:
so you're a UPS trucker? that explains why you asked the question then.
And so pissed that he's about to lose his job if DL content were cheaper.
Posted on 3/16/13 at 10:02 pm to jcole4lsu
quote:
reduction in production costs does NOT equate to a reduction in price point.
You are speaking in absolutes when that simple isn't the case.
Reduction in production costs does not ALWAYS equate to a reduction in price point.
Reduction in production costs CAN equate to reduction in a price point.
Hate to sound like a broken record, but PC DD games are $10 cheaper. I'm sure you will do your best to attribute that to other factors based on even more assumptions, but I see no other reasons why they are cheaper.
quote:
free market economic principle are really not that hard to understand folks.
They aren't when you completely oversimpfly them.
This post was edited on 3/16/13 at 10:05 pm
Posted on 3/16/13 at 11:31 pm to BTHog
quote:
downloaded game as it does to buy the same game in retail format??
Actually lots of the older games cost more. In some cases they cost a lot more to download than to buy a hard copy.
At least on Amazon. Several games I was just looking at were over 20 to download but hard copies were under 10.
Posted on 3/17/13 at 9:39 am to taylork37
quote:
Reduction in production costs CAN equate to reduction in a price point.
No, it can't. All it can do is provide the opportunity for the supplier to reduce the price point - but that only happens if the new production costs allow a new price point that would result in more sales and an overall higher real profit. The production costs reduction alone does not equate a reduction in price point, at all.
In this case, we are apparently talking about ~$5 in production and shipping per unit. EVEN IF your assumption that cost reduction would equal price reduction were true, your logic would only give the consumer a drop from $60 to at best $55. Why are you talking about dropping the game $10?
quote:
Hate to sound like a broken record,
Obviously you don't. You appear to have some sort of fetish for getting in over your head in a discussion and arguing blindly with people who have more experience or eduction on a particular field. You did the same thing in the pc/console hardware thread, its going about the same for you now as well.
Why do suppliers of other products, whom also have a retail storefront, sell their products at the same or similar retail price as the vendors they wholesale from? They may have a contract in place, or may think its simply a good business practice. Those may be true, but the real reason is the retail price is the price that fetches the most profit for the supplier. Why would EA sell their game cheaper (at launch) on Origin than you can you get it Walmart? Similarly, why would Microsoft sell an xbox exclusive game cheaper via DD than the price at GameStop? It simply doesn't make any sense.
Posted on 3/17/13 at 4:25 pm to jcole4lsu
quote:
Reduction in production costs CAN equate to reduction in a price point.
quote:
All it can do is provide the opportunity for the supplier to reduce the price point
This is same statement as well as part of what I have been trying to say this whole thread. Until now you have stuck with the idea that maximizing without the reduction in price is the only way of business.
I have stuck to the theory that the goal is to maxmize profits but there are different way to do so. In this case potentialy reducing the price point because of a few previously stated reasons.
quote:
but that only happens if the new production costs allow a new price point that would result in more sales and an overall higher real profit. The production costs reduction alone does not equate a reduction in price point, at all.
And again, I have given more than just the reduction of production costs as reasoning.
quote:
In this case, we are apparently talking about ~$5 in production and shipping per unit. EVEN IF your assumption that cost reduction would equal price reduction were true, your logic would only give the consumer a drop from $60 to at best $55. Why are you talking about dropping the game $10?
No, we are also talking about the push to DD and the lessening of resale it creates, as well elimination of retail.
I was talking about dropping the game $10 because that is currently what the price difference is for many DD PC games compared to their physical copy. No where did I say that the games should be reduced by $10 because of the drop soley in production costs. An earlier point which you have yet to address.
quote:
Obviously you don't. You appear to have some sort of fetish for getting in over your head in a discussion and arguing blindly with people who have more experience or eduction on a particular field. You did the same thing in the pc/console hardware thread, its going about the same for you now as well.
I will freely admit my relative lack of knowledge of PCs as it pertains to the pc/console thread. But you are not proving a thing in this thread other than the fact that businesses do not have reduce their price when eliminating costs. Which I have said over and over again is correct.
Its nice you think so highly of yourself and your supposed in depth knowledge in this field, but that fact that you haven't proven any sort of relatable point besides those that we already know and agree on, makes your holier than thou attitude laughable.
Its pretty easy to just pretend like the person you are debating is in over his head when you don't agree with him.
quote:
Similarly, why would Microsoft sell an xbox exclusive game cheaper via DD than the price at GameStop?
I think Im done with this debate, your head is so far up your own arse, even if I did get you to agree Ithere is about a 0% chance you would admit it.
This post was edited on 3/18/13 at 7:53 am
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