Irridium said:
tk1989 said:
Irridium said:
Or they could just reduce the price of games at regular intervals. That would cause more people to buy the games, and put the squeeze on the used games market.
But don't ***** about consumers trying to save as much money as they can in a bad economy. Games are expensive, so don't ***** when people are buying new to save money. Reduce your prices at regular intervals, and more people will buy new.
Of course thats logical and smart so it'll be ignored.
Why drop the price on a game which is still selling loads at its full price point? Dropping the prices of games at fixed intervals isnt that great an idea; dropping the price is useful once the product sales drop, when a competitor is released, or when the market starts to saturate. Dropping the price of a game if its still selling loads just doesnt make sense; look at all these nintendo games which keep selling well week after week, or even the Wii itself, which i still dont think has undergone a price cut.
Dropping the price also causes insane amounts of the game to sell, if Steam sales are any indication. Team Fortress 2 repeatedly made back the amount it cost to make when it was put on sale. Same with plenty of other games that went on sale.
Yes its a business and the goal is to make money. But this is life in a tough economy and people are trying to save money. If the price is low either at launch or lowered over time, more people will buy it, and they will have more money which they could use to buy more games.
Team Fortress 2 was being sold through Steam however, which is run by Valve, maximising profits making it easier to get the money back. It also cant be resold, as its a digital download, meaning that valve get money for every copy sold regardless. Valve also have a great deal invested in Steam as a whole, so they will frequently drop prices in order to bring in new customers.
The digital downloads market is very very different to that of retail, and your analogy is unfair. Granted, if the price of a game in a shop drops from £40 to £20, sales will undoubtably increase. Why would a company do this however if the sales of the game are already pretty high? You were saying that prices should be lowered at regular intervals, but why do this if sales are already very high?