Jimquisition: Don't Charge Retail Prices For Digital Games

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Simonoly

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Oct 17, 2011
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Having just pre-ordered a physical copy of Diablo 3 from Amazon for ~£15 cheaper than the digital copy offered by Battle.net, this video seems all the more relevant.
 

MB202

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With the $60 price in retailers, I can almost, kind of see where some publishers might be coming from, even though I think it's ludicrous... DIGITAL distribution at the SAME PRICE, however, is UNACCEPTABLE!
 

Simonoly

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1nfinite_Cros5 said:
This is why I refuse to buy Skyrim on Steam. The bloody game is STILL at $60. I always wait for Bethesda to release a Game of the Year Edition so I can at least get everything. Buying one of their games at launch is never good news to me.
I got it for the equivalent of $35 on a random Steam discount one weekend in January.

I have a feeling that we might see another discount around the time that the new dlc comes out later this Summer.
 

snave

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Wait? $60? Not $80-$100?

Grrr.... Australia! At least PC games can be imported.
 

The Grim Ace

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It's sad that any of this needs to be said. The price ought to reflect real world factors, thus cheaper digital purchases. Love you too, game industry >.<.

Also, it's pronounced 'Goodler.'
 

CrazyFikus

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Slightly off topic, what is that game at 2:43?

On topic: yeah, digital distribution has screwed up pricing.
 

dangoball

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There is also this one funny thing about EA's pricing model on Origin. Considering that Euro is a stronger currency than US Dollar, how come I should pay 60-70 Euros for game priced 60 USD on lunch day?

And on a side note to those complaining about Skyrim on Steam: there have been 3 discounts I remember since Christmas and at least one of them was 50%. I would have liked to make use of that, however Skyrim is not even available in my region on steam and for 40 Eur (52 USD) on retail.
I just wanted to complain about that for some time, so there.
 

Invadergray

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On a 60 dollar game, the average AAA game will make about $27 profit at retail for a publisher. If digital distribution is cutting out the retailer and giving us direct access to the games via the publisher, the price should be set around there. You're still making the same amount as you would at retail, and your digital system is more accessible and attractive to consumers.
TLDR; PUBLISHERS MUST LISTEN TO JIM STERLING
 

Eric the Orange

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Apr 29, 2008
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Yeah normally I'd defend greedy publisher decisions by saying, "there a business, they'll do whatever makes them the most money". And that's probably what they're thinking when thye make these prices. And while that may be true in the short term (and I'm even iffy about that), I think it will most definitely be losing them more money in the long term.

Say if you priced new AAA games at $50 instead of $60. You'd probably be making the same amount of money (wild guess on my part), but what you'd be doing is acclimatizing people to online transactions. Soon people will say "it's cheaper and more convenient, so I'll just do that". And the thing about the digital copies, no re-sale. And that means no used game problem. and if that's as big an issue as you say it is, then in the long run you stand to make way more money.
 

Eric the Orange

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Aircross said:
Big companies using their monetary power to stall progress that would improve how things work.

JEEZ, WHERE HAVE WE SEEN THIS BEFORE?!

History sure does love to repeat itself many times.

Captcha: hot-blooded, how fitting.
The thing about it this time that separates it from previous incarnations is that it would actualy be more beneficial to the buisness. Usually when powerful companies do this kind of thing it's because they will make more money if people are denied this item, service, whatever. But in this case game publishers have in there grasp a way to end the problem of used games and they are choosing not to take it.
 

targren

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Falseprophet said:
But then they realize even though in theory digital distribution should be cheaper than physical, it actually has costs they probably didn't have to deal with before. With physical games, GameStop, Wal-mart and the other retailers take on the cost of storage, shelving, and some of the front-line marketing, customer service, complaints and most importantly, customer cash transactions.

When a game publisher creates a digital distribution platform, they go from being a publisher who lets dedicated retail businesses sell their content, to a bona fide online retailer. Which puts them on the hook for:
i) Server farms to store the content and customer data
ii) Bandwidth for the downloading of content
iii) applications to handle secure online retail transactions
iv) the technical and customer service expertise to run an online retail business
v) the legal advice to handle retail transactions pretty much anywhere in the world

i) Servers plus personnel to maintain them are pricy, but a sunk cost. They're paying for them once, and they're doing it anyway alongside retail.

ii, iii) Bulk Bandwidth like those server farms use is incredibly cheap per gigabyte. Likewise, the frameworks the stores run on are a solved problem.

iv) Clearly you've never dealt with customer service for an online store. "Expertise" isn't in high demand. Mostly, you're going to be dealing with just-above-minimum wage script-readers.

v) They're paying for that either way with the box copies, plus most of the digital stores don't serve the entire world, instead limiting to certain geographic areas.

Compare that with all of the things you neglected to calculate in the retail/physical side: Mastering and producing the install media. Printing, assembling, and packing the packaging. Physically transporting the product to the retailers. That adds up to a lot of coin.

Don Reba said:
God, I wish there was a way to remove Jimquisition from my latest videos page.
You could... you know... not click on it. Just a thought.
 

ZeZZZZevy

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FelixG said:
The real big issue is for multi platform games

Say Activision wants to sell MW:whatever for 45 dollars on steam, but Gamestop doesnt want to be undercut, they wont just say "Fine we arent carrying your PC version!" they will say "You are undercutting us with another retailer, we are not stocking PC, Xbox, or PS3 versions."

That is why pure PC games do release more often than not with much smaller price points than games with console players in mind.

It is very important to note that they can try to drive all they want, but not everyone is capable of getting a PC to take advantage of digital distribution, as far as I know it is impossible to buy Gears of War, Modern Warfare, Skyrim, and Uncharted for the Xbox or PS 3 respectively through digital distribution.

When the next generation of DD game consoles are released we will likely see a heavier push. Because then if Gamestop whines and says they wont stock the game in their stores they can go "lol fuck you" and get people to buy it on their boxes.
You can actually buy games from Xbox Live (it was implemented a while ago, but I'm not sure if it's available at the same time as retail) and I'd assume the PSN works the same way. The whole system is still fairly rudimentary, but it is there.
 

Elyxard

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When they were selling the digital deluxe version of ME3 for 80 dollars, all I could think of was, "really?". That's beyond insane. There is no justification for charging that much when all it costs them is the bandwidth to distribute it. It's like they're trying to desperately pretend that Steam does not exist with Origin.

However, it's hardly only the videogame market that's desperately clinging to the physical market. All these media industries are afraid of losing their exorbitant and aging business models.

I do wish that Nintendo would learn as well. I think their NES and SNES era games are still way to expensive on a store that might not even carry over to their next console.
 

geizr

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This same problem exists with e-books as well (I know with e-books, digital distribution maximally cuts about 30% off the price of publishing a book; yet, you will find many e-books priced more than their physical counterparts. Go figure that one out.). I don't think it's a problem of arrogance on the part of the game publishers. I think it's just ignorance and incompetence. The executives in charge of content publishing, in general, simply prove to be ignorant of technology and how to use it, and they prove to be incompetent when it comes to actually understanding the market they are trying to serve and finding profitable ways to serve that market in a manner that ensures the loyalty and satisfaction of that market. They're just idiots, and they have no adaptability to changing market conditions.

Really, I think the only way to change the situation is for the old guard to just go out of business, and a new, younger guard, one that does understand its market better and has fresh ideas, rise up to take its place. Sometimes, for evolution to progress, you have to hit the planet with an asteroid and kill off all the dinosaurs. The game industry needs a serious hard crash, just like in the 80's.

Personally, I've been losing all interest in video games as of late. There's just too much bullshit and too little quality, creative diversity, and emotional spirit in today's games to make video gaming, as a hobby, worth the investment of time, effort, and money. Back in the day, it was not unusual for me to buy 2 games in one month, averaged over 6 months. Now, I barely buy a game every 6-8 months, averaged over 5 years. It's just not worth it anymore.
 

Redd the Sock

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What, you expect capitalist companies to behave like capitalists in a capitalist system instead of demanding the market change? Sorry, somewhere down the line capitalism became corporate overlords whining and demanding special privilages.

It is sad this needs to be said as even older games on PSN still go for full price. I was pricing out PSP downloads and saw games for $40 I got for $15, or even $8 at gamestop with the white stickers (meaning not used). I'm not a fan of going all digital, but shit like this doesn't even make it tempting as I have to deal iwth all the crap that comes with not actually owning the game for the price of owning the game. I get they don't want gamestop to go away completely as systems and controllers need to be sold somewhere, but this basically begs me to buy used.

PS, forget the Hitler thing. You'd look dumber in that moustache than he did.