My Heart Says Maybe, But Your Price Tag Says No

5211_100857553261324_100000112393199_12455_5449490_n
Wednesday, September 22, 2010

So I was visiting Gamestop, as I often do when I have money in my pocket, wanting something to convince me to take it home.  This rarely ever happens. I happened upon the PC section and flipped through the depressing offerings and came across Batman: Arkham Asylum.  Curious, I pulled it out of its spot and my eyes brushed against the price tag.  It said >>New<<  $20.

My initial response was “Gosh, that sticker’s totally not going to come off of that case,” shortly followed by me approaching the clerk and in a raspy voice letting them know that I needed this game.  It was admittedly creepy; I like to harass the guys behind the counter because I feel not enough of their customer base does so, and while they publicly tell me they don’t like it when I do that (“You’re scaring me,” verbatim), I know better.  He slid the disc into the case and I zipped my card and I was the proud owner of AA for $20.  I thanked him, wished him and his co-worker a pleasant evening and walked out.

Now, I know Batman is a great game; I’ve played up to the Bane encounter on the Xbox 360 and was very much entertained.  And I’ve also written an article on this very site detailing how much the controls on this Personal Computer thing give me warm gooey feelings versus the console counterparts.  So you can imagine how after seeing AA for $20, the resulting purchase for me was a no-brainer.  I put zero thought into it.  I would have put equally little effort into this process if the price tag had said $30.  At $40, however, I would have needed to think on it.  Not for long, mind you, but it would have given me pause.

How do PC gamers value their investment versus the time spent playing it?  I can imagine an imaginary scale that starts out fully tipped at “I’m not buying this” and, depending on your tastes and knowledge of the game, slowly the scale tips in an attempt to reach a balance before inevitably falling over to the “I’m buying this” end. 

The same thing could be said of ALL gamers, honestly, but the dynamics are a bit different, as PC gamers and console gamers, at heart, represent two different memes.  What one PC gamer takes for granted, a console gamer does not, and vice versa, ad infinitum.  If you own an Xbox and play online games, you own Modern Warfare 2, or Halo: Reach.  If you own a PC and play online games, you own World of Warcraft, or Starcraft 2, or Civilization V, or any number of Steam FPS offerings; the lists are extensive, but often exclusive with their platform.

My scale is biased towards price on games versus how much game time I will get out of it.  World of Warcraft is a no-brainer because I’m certainly going to get $15 per month out of it.  But how often does the scale tip to “I’m buying this” for me?  Not very often, for PC or consoles.  Let’s take a look at a few of my last purchase decisions.


Batman: Arkham Asylum (PC)

Price: $20

Scale: Buy it (by practically a brick’s weight)

Reasoning:  Previous experience, coupled with an outrageously cheap price (I’d value the game at $30 at the very least) and the addition of Games for Windows: Live for those extra achievement points for my GS literally combined into the perfect formula for “Buy it, and if you don’t have $20, find $20.”  The graphics are gorgeous, the controls are FLAWLESS and…yeah, I think we’re looking at best purchase since Mass Effect 2.

 

Dragon Age: Origins (PC)

Price: $30

Scale: Buy it

Reasoning:  I’d had a little experience with the game beforehand, and had heard good things about it, as well as the upcoming sequel.  Had the game been $40, I would have actually had to pass, but I happened to have $20 on credit at Gamestop so this was practically a give-away.  Game actually ended up being quite good!  Well worth $30, and probably a bit more.

 

Battlefield: Bad Company 2 (PC)

Price: $50

Scale: Buy it

Reasoning: I’d actually had zero experience with Battlefield games, aside from watching people play 1942 at LAN parties nonstop and shout/laugh/maim/scream obscenities while playing, and at $50, I was pretty much never, ever going to buy this.  HOWEVER, a friend I play games with on the PC recommended it highly and I decided it was worth a shot and impulsively purchased it.  Two days after I purchased it, Steam dropped the price down to $30.  Thanks!  Here, I’ve got a finger for you guys, I know it’s around here somewhere….  Last impulse buy I’ll be doing for some time, thank you.  Had the game been $30 to start with, in retrospect, it would have certainly been worth it.

 

And here’s where we hit a sour note or two.

 

Modern Warfare 2 (PC)

Price: $60

Scale: Do not buy

Reasoning:  I actually played Modern Warfare pretty steadily, and it was a great game.  I was not impressed with MW2’s multiplayer options on the PC.  It got backlash for being a simple port from the console counterparts.  The price isn’t justified and has stubbornly remained at the full $60 since launch.  I do not support a $60 pricetag.  Infinity Ward could care less; they sold plenty of PC games, they got their money.  Good for them.

 

Spider-Man: Shattered Dimensions (X360)

Price: $60 (now $50)

Scale: Do not buy

Reasoning: I’ve gotta say, I’ve been excited to get my hands on this game ever since it was announced because I have a GUT feeling that this game is gonna be fantastic.  At the same time, though, I recognize that it’s going to be a five to eight hour brawler romp that I’ll finish in 2-3 days and be more or less done with, and I just don’t value that at $60.  Ironically, I must not be alone, because not even a week after its release, the price was reduced $10.  I’m not sure if that was in response to poor sales or if that was the original intent, but that says something to me.


And here’s where I think a serious problem with PC gaming and, to a certain degree, console gaming, have in earning my money: You over-value yourself. 

This economy is garbage, and I can and do get more enjoyment out of food and paying bills than forking out $60 a crack for new games.  I can live without Modern Warfare 2, or Red Dead Redemption.  I think in the past …five years, it must have been now, I have paid full-price for a whopping five games: Street Fighter 4, Starcraft II, Super Smash Bros Brawl, Super Mario Galaxy and Mass Effect 2.  You have to work HARD to milk $50-60 out of me!

I understand making games is a serious cost these days.  It’s a multi-million dollar investment and the best that many of these games can hope for is to at least recoup development costs; take a look at APB.  That game cost $100 million to produce (a ludicrous number if I’ve ever heard one, but there you have it) and not even three months after launch, it’s already been discontinued. 

Need for Speed World, a similar game (focus on racing) didn’t even last two months on its “Free to try, $20 to progress” model and has since converted into a microtransaction-based system, something they were probably hoping to use later on in the game’s lifespan to attract more players but had to resort to simply to stay afloat.

There’s only one problem with the current price of new games: To put it into simple terms, it’s too much.

If you’re not Fable 4 or Halo 7 or Zelda Next or Final Fantasy 15 or Fallout: Radioactive Canada and you’re asking $50 or $60, you’re doing it wrong.  There seems to be this attitude of shifting the blame to account for disappointing sales.  “Oh, Spider-Man didn’t do so hot because Halo Reach was right around the corner”.  “Oh, Battlefield: BC2 had to compete with Modern Warfare 2.”  “Oh, sales for Street Fighter 4 PC sucked because of pirates”.

Do you know how many games I would buy if the baseline price were $40 instead of $60?  A LOT more.  And I would be buying these games new, not used.  Batman: AA for $40 brand-new in Walmart?  Cart.  Modern Warfare for $40?  I could find plenty of value out of playing that game online if it only cost $40.  Cart.  Civilization V, $30?  Sign me up!

Here’s the deal, Publishers, and I really hope you’re listening: You can bet your sweet buns that I’m not the only person with this attitude.  Yes, making games cost money, and you feel the need to charge $60 for a game still shrink-wrapped in the lockbox of your favorite local superstore, but do you know how much of $60 you’re going to make from me at that price?  $0.  That is zero percent of $60

There seems to be this idea that early adopters will somehow magically bring in profits for you, but I tell you now, if you wait for those sales to save your buns and, three months down the road, you decide to cut the price, you have already lost those sales.  Virtually all purchases that you could have gained by simply releasing the game at $40 have gone to Gamestop for $5 less than that, and do you know how much of that $35 you are getting?  $0.  That is zero percent of $35 OR $40.

If you want to profit at launch, and I mean really profit, take a good hard look at the cold numbers and use some common sense instead of making excuses, or blaming pirates for your woes, or giving up.  If a fifth of Walmart shoppers buy your game for $60, that’s $120 per ten window shoppers.  If two-fifths of Walmart shoppers buy your game for $40, that’s $160 per ten window shoppers.  You lost $20 on licensing fees and gained $20 you would have otherwise not gotten.  We call that an improvement where I come from. 

It’s fluffed and purely speculative, but it’s an interesting scenario.  What if the game in question had been Spider-Man: Shattered Dimensions?  I don’t think it’s too insane to consider that game for those numbers.  I know I would have bought that on day one if that had been the price.  

Maybe you should work on convincing us that your game is worth a purchase on day one by speaking to our wallets directly, and stop blaming Gamestop for you not selling more games.  If they were properly priced in the first place, Gamestop would be out of business.


Now that you’re done reading this, I’d like to know.  How many more games would you buy per year if the prices started at $40?  Do you enjoy buying games at $60?  Do you feel you get $60 worth of entertainment, generally speaking?  Keep in mind, you can purchase Big Bang Theory Season 3 for $35, and that’s what, eleven hours of entertainment?

Brain candies.

 
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Comments (14)
Chris17
September 22, 2010

Nice read. Certainly I spend far less on games now with adult things like pensions insurance and bills to pay than when I was a student; your values definitely change. I did go through a phase of buying and playing anything that cost less than 500 Yen at my local games store, but got deluged in so much crap that I could never even sell on afterward that I decided to stop- but I reckon my values are such that 5USD is worth it for (almost) anything.

Some onus has to be on the retailers though- I don't know what the non specialist retailers are like in America, but I went to a popular electronics store here a couple of weeks ago and saw on a shelf the MLB games from 2K7 to 2k( in a row. 2k7 cost 6000Yen (70 bucks give or take), 2k8 was 5000 and 2k9 was 4000... there seemed so little thought given, most likely because this was also the xbox section, and the employees didn't really give a shit since none of their stock would shift from there anyway. 

Bmob
September 23, 2010

I have just under 40 Xbox 360 games. I have only ever paid full price for one of those - Tales of Vesperia.

I would not have bought new copies of The Last Remnant, Infinite Undiscovery, Magna Carta, Resonance of Fate, Star Ocean: The Last Hope, Skate 2, Fallout 3 or Final Fantasy XIII if they would have set me back $60, particularly for those new RPG IPs.

All of the other games I bought used, because I don't value the likes of Too Human and Dark Sector at $60, nor do I value bigger names like GTA IV or Mass Effect at that price.

In hindsight, perhaps I would value Rainbow Six Vegas 2, FIFA 09, Skate 2, Football Manager 2010 and Oblivion at $60 - I've spent well over 100 hours on each - but you don't have the power of hindsight when purchasing, so that price point still would've been too high.

I really do think prices should be scaled with the perceived quality of the product. Honestly, did Rockstar think Table Tennis was worth the same $60 they set for Red Dead Redemption?

5211_100857553261324_100000112393199_12455_5449490_n
September 23, 2010

@Chris: That's a depressing story, that last bit.  Given the locale, the games involved and the prices, I can't say I'm very surprised, but you bring up a valid point.  As far as the cheapy purchases go, absolutely: my Steam library has become inundated with bargain-priced games and compilations; I think my collection's 70 or so titles strong, and the average price paid for those games have been anywhere from $5 to $10.  Star Wars: The Force Unleashed for $7.50?  Exqueeze me?  Yes please!

 

@Sandy: Excellent point with Table Tennis.  I have no idea what they spent to produce that game, but that's something you simply cannot seriously justify with a $60 tag.

 

Your collection's pretty sizeable!  Just think about how much money the games' respective publishers could have gotten if you had bought new at a reasonable price...  Tales of the Abyss is actually on my Top 10 Games of All Time list, and I was really excited to get my hands on Tales of Vesperia, but I didn't feel like shopping online for it and the stores around here tend to not pick up jRPGs because they have this habit of not selling for the asking price.  I would have loved to pick it up when the price dropped down to $30 new, but by the time that price rolled around, what was undoubtedly a scarce find in these woods undoubtedly became completely nonexistant.  I missed out.

 

Having experience with ME and GTA4, I can probably safely say (in hindsight, mind you) that I would have gotten $50 worth of play out of those titles.  As it was, I was barely willing to pick up Mass Effect for $20 on the PC, and by the time GTA4 had piqued my interest, it was already in the $20 bin at Walmart.

Robsavillo
September 23, 2010

3D Dot Game Heroes did exactly what you describe -- the game launched at $40. I'm sure exactly how it sold, though.

 

But I agree with your general sentiment. Games are way too expensive to buy brand new all the time. I wait for price drops, used offerings, and Steam sales for anything that's not already an immediate purchase for me. I waited for a Steam sale to get Rebellion's Aliens vs. Predator reboot, but I actually preordered Firaxis's Civ 5 (but I also got a $10 discount!).

 

3D Dot Game Heroes is a rare offering, though, and I see prices going up -- not down. As you mention, Modern Warfare 2 launched at $60 instead of the traditional $50 for PC games. Same deal with Starcraft 2. And now we have all this DLC -- like map packs, extra in-game equipment, or cosmetic additions -- that we used to get freely on PC through community modding projects or dedicated fans.

5211_100857553261324_100000112393199_12455_5449490_n
September 23, 2010

@Rob:  Apparently it was somewhat successful; 3D Dot Game Heroes actually led PS3 sales in April, and was quite high on Amazon.com's Best Sellers list.  By week 16, the game had sold over 220 thousand units, according to VGChartz.

 

Pretty solid numbers for an unknown quantity like 3D DGH!

 

Agreed on the DLC junk, but I bet the modders saw that coming a mile away.  They can't charge for additions, but the IP holders sure can. ;p

Robsavillo
September 23, 2010

Wow! I'm glad to hear 3DDGH did so well -- that game deserves it.

Nick_whale
September 23, 2010

I'm a console gamer, and the $60 price tag has forced me to buy only the games that I absolutely need to have. Now, if this was 1998, I wouldn't care about a game's price -- I would just beg my parents to buy it for me. Alas, growing up sucks.

 

The good thing about the game retail industry is that, despite the initial $60 price point, the retail value of games seems to go down pretty quickly. I recently bought BioShock 2 for $40, and it came out only seven months ago. Alan Wake is about $40, too, so that may be my next purchase after I stop obsessing over Halo: Reach. (Yeah, I bought it at $60, but I received a $20 gift card with my purchase. So cut me some slack, OK?) It's really just a waiting game for me at this point.

Scott_pilgrim_avatar
September 23, 2010

I'm probably in a terrible minority of rarely paying full-price for ANY game, regardless of how low it's initial retail vaue. I admit it; I'm cheap. I simply don't have enough disposable income to justify paying full-price for something I maybe be able to get cheaper later/at another store/with a coupon/for my birthday/etc.

That said, 3D Dot Game Heroes is the only game I purchased at full-price this year. Arguably, then, if more console games sold at $40, I'd consider buying them more strongly, so I think your point is well made, Bryan.

5211_100857553261324_100000112393199_12455_5449490_n
September 23, 2010

@Nick:  I can't blame you for picking up H:R with that deal.  Was that an Amazon.com offering?  I hear they're doing a lot of those pre-order dealios.  At that point, I think picking up Halo Reach would definitely be in my window of interest, but I couldn't fault you for picking it up at full price anyways.  Halo's one of those Triple-A console releases that, if you're active in the online aspect and own a 360, you practically HAVE to pick it up.  You knew you would buy it before you did, because Halo has built a relationship with you, and you trust it to be value-worth for the price paid.  I could say the same about PS3 owners picking up Metal Gear Solid 4 or God of War 3, or PC gamers picking up Starcraft II.

 

@Ben: I can see that group of gamers (Cheapy gamers, something I dip in and out of, income-dependant) taking a more serious gander at the new offerings if they were priced a bit more realistically.  If you have any modicum interest in a game, I can hardly see you passing it up at $40.  That's a very reasonable price for a large number of games out right now that would otherwise be no-buys at $60.

 

 

A couple of interesting afterthoughts!  Steam is offering Darksiders at $40 at launch (with a pre-order bonus of another PC game while you wait for the release), which I find fitting as the game's fairly dated at this point and asking any more would be met with laughter... and MOST interestingly, Dead Rising 2 is being offered at $40!  Right from the get-go.  I have to be honest, I wasn't really considering this as a purchase option, but if I've got $40 disposable at some point in the next couple weeks, I'm gonna have to think about it somewhat seriously.

Nick_whale
September 23, 2010

Best Buy offered a $20 gift card with the purchase of Halo: Reach during its first week of release. You're right, though -- I would have picked up the game regardless of the gift card. :) But I already knew that I was going to enjoy it, so what the hell, you know?

Me_and_luke
September 23, 2010

I have no shame in saying that I buy every single game off eBay or craigslist.  It only takes a few weeks for a AAA $60 retail game to sell for $50 or less on eBay, and it just keeps getting lower as the days go by (even "Buy it Now's" can be pretty cheap, if you're too lazy to go for auctions).

I'm surprised more retail games don't take the 3D DGH or Banjo Kazooie: Nuts n Bolts route, and price the game cheaper right off the bat.  $40-50 is always far more appealing than $60.  You have to wonder though if the average consumer looks at a $40 game and thinks that it might be of "cheaper quality" than it's $60 counterparts.  

5211_100857553261324_100000112393199_12455_5449490_n
September 23, 2010

If a customer looks at a game and says "The $60 is better than the $40 one", than that is some cruel, inhumane conditioning the videogame industry has inflicted upon their customers.  In short, I hope not!

 

In my mind, someone sees a title in a lockbox and comes up with these questions:  Do I recognize it?  Do I have it?  What have I heard about it, if anything?  How much does it cost?  If the price is, literally, the only deciding factor on a purchase or perceived value versus actually knowing what you're buying, then I retract all of my earlier statements because the Videogame industry died without my knowledge and has no soul left to salvage.  We've stumbled upon the Wii Shovelware Hell, and it is all around us.  Consequences will never be the same.

 

What a terrible thought!

Bithead
September 23, 2010

This is a great, honest piece.  And one I'm concerned will only have more relevance as this industry continues to grow.  I'm probably completely paranoid, but with every passing month that features an abundance of big-budget titles (and with every month that the vast majority of these go under-sold) I worry about the oversaturation of the market, more companies going under, and the possible drastic consequences.  Maybe not 1983-bad.  But something-bad.  And I think a more realistic price point would help New Sales stave off the ever-increasing burden of Used Sales.

I know some people point to inflation, and the cost of certain SNES carts in the mid-90s, and say, "If anything, gaming's gotten cheaper!"  And hey, maybe you're right.  But I, like Bryan, find it more and more difficult to rationalize full-price buying.  And I'm paying Wii prices!  That's 50 bones, tops.  But still, the psychological difference between 60 and 40, or even 50 and 40, is sizable.  Even if we'll waste 10 or 20 bucks on an unfortunate movie night -- Nightmare on Elm Street reboot, I'm looking at you -- it's harder to part with that extra cash on an unknown game experience. 

I'd love to try so many of the B titles out there, but I either stick with the known commodities, or buy the weird stuff cheap and used.  But then I'm not supporting the smaller, risk-taking companies I want to keep afloat, and I feel bad.   Had Fragile Dreams or Sakura Wars been priced lower, I would have taken the plunge and given XSEED or NIS my monies. 

31947_397938328460_601368460_4370558_5118723_n
October 02, 2010

@Sandy Actually, Rockstar's Table Tennis was only $40 when it came out. They knew it wasn't worth the full sixty.

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