I would actually imagine that retailers have a hand in this situation as well, in the sense that, if online sales are undercutting disc sales by being, say, $20 lower in price, then retailers are going to see that as losses for themselves, pitch a fit, and refuse to distribute the product. Because publishers still DO rely on retail stores to move a lot of product, they keep them happy by keeping the prices artificially inflated so they're not perceived as trying to undercut retailers.
Gamers are a bunch of self-entitled pricks who feel data should be free or close to it despite that, on it's best day, digital distribution accounts for roughly 20% of a total units sales thus making a fully digital push economically unrealistic. (see how badly fucked the PC market)
Retailers are self-entitled pricks who, at the first sign of DD favoritism, will refuse to stock and distribute said titles and has even gone so far as to threaten not carrying the publishers entire lineup forcing companies to ultimately make the decision of which is more important, Dawn of War or the entire of THQs lineup?
Publishers are a bunch of self-entitled pricks because they want Digital Distribution to become a bigger factor so that they can turn a profit on fewer sales. (hint: Not every game is Call of Duty, most barely break even... EA as a greedy company hasn't turned a profit for the past 7 years yet we demand more and more free shit from them because they are greedy and actually want, GASP, to make a profit)
In essence, you have a holy trinity of selfish, self-entitled pricks who refuse to compromise or even negotiate a middle ground because ANYTIME things change in one directions favor or another, you get a reaction like this from one of the three camps.
Until we're willing to meet in the middle, much like the music industry did, (and seems to have forgotten why MP3s took off in the first place recently) progress will not be gained. And instead of painting one faction as unmovable villians, maybe give a little. Try and see things from their perspective. Your Mass Effect 3 $39.99 idea is fine... until gamestop, best buy, walmart, target, meijer, hmv, and countless others say, "You know what? Fuck you and all versions." You're expecting EA to save, at most, 30,000 people $20 at the cost of millions in lost sales as the console versions just cannot be purchased in the brick and mortars.
If they want the money from "new" sales on older games then they really do have to re-examine their pricing structure.
I feel exactly the same way. I wish publishers would see if from this point of view.
The last paragraph says it all..
I will point out however that you forget the tail end of it...Retails power hold.
Here's the concept. If I sell a game for $20 less online than I do at Best Buy, what is the incentive for Best Buy to stock 100,000 copies of the game to sell at MSRP. So Best Buy decides to cut the purchase down to 25,000 units to cover the preliminary sales and they don't plan on reordering unless demand is still high.
That's the reason why online pricing is so high from companies like EA and Activision. Because they toe a line between pissing off retailers and maximizing profits. Just because you are going to buy a game through Origin or whatever at that lowered price point, doesn't mean that 75,000 people are going to cover the loss from Best Buy.
In concept, this is what killed the PC gaming market at retail. Well, that and DRM.
You have to go to Steam to get the deal because no retailer will stock the game. I used to remember the giant displays for Everquest and other games at Best Buy. Now they get half an aisle that's split with software.
This is why the console push is so slow and doesn't fluctuate. Because they can't do it. It's why you see XBLA Deals of the Week, because they don't have to compete with anyone on the deals. It's why Games on Demand will always be higher than MSRP. Because retailers are only willing to compete directly. Once you start cutting in to margins, all bets are off.
And digital games are simply not embraced in a way that makes that kind of investment (for the publisher) sustainable. You say they're too expensive, so you don't buy them. Meanwhile, shipments and shelf space still have to be paid for because you're still buying physical games (and likely will until they don't exist). What's a publisher to do? Make digital downloads cheaper just so you can still buy things from the store anyway? What kind of business sense does that make?
Games still cost a fuckton of money to make. Gamers demand bigger, more involving games, but get annoyed at the growing costs that go hand in hand with that. You can't have it both ways.
But, you know, I don't even care if digital copies cost the same as retail copies on Day One. I understand that publishers have to keep their retail partners somewhat happy. However, the idea that, after a few months, buying a boxed copy from Amazon will ALWAYS be cheaper than a non-sale digital copy is ridiculous. They should AT LEAST mimic the same path of depreciation we see with the retail version.
It is absolutely within the power of publishers to strike a major blow to the used game market. All they would have to do is undercut the price of a used copy with digital releases. Not only would they make just as much money, but they'd keep trade-ins off the market.
I think everyone is in a holding pattern right now. I think all the big publishers are waiting for a big name to go with a digital only release, so they can see how many copies it sells, and more importantly, what kind of profit it generates.
Retailers have absolutely nothing to gain right now from digital distribution and as long as publishers need them things won't change pleasantly. Unless publishers started cooperating with retailers this is their compromise: everyone on the business side stays happy, consumers are pissed but not enough to stop buying things, eventually satellite internet will put online connectivity everywhere and retailers will get shut out so hard I almost feel sorry for them and reasonably priced digital distribution for consoles will never exist and Steam will be pecked away at by greedy publishers.
Don't hate the publishers, hate the greedy retailers.
One thing I think we can all agree on is that games should have a grace period whereupon the game would drop in price. I mean...some stores do that already (bargain bin/get this off our shelves) and we've stuff like Platinum Hits and Greatest Hits, but I dunno, it's wrong to say "it's not fast enough" because I know I'm a huge cheapass.
It's a problem (the pricing, the DD versus retail, etc) but I've no idea what a good solution would be.
That thought right there frightens me, and I often wonder how long before one does. Well written article. Congrats on front page!
What makes this a worse situation is that 24 months ago it wasn't half as bad. Unfortunately I can't pull citeable sources, but Call of Duty 4 used to be one of the "US-price" level games, just Modern Warfare 2 launched, it went to the $90 mark, to be dropped down to $49 again.
Modern Warfare 2 itself is STILL 90 large.
That gouge that the article is talking about, it's even worse down under.
Oh, and I'm really starting to dislike EA Origins. I'm sorry EA, I'ma let you finish, but Valve has the best software distribution in the world.
They're just cutting off their own legs by keeping their titles from being cross-platform selling. Why can't we have it on both Steam and on Origins, or have it work in tandem between the two?
Oh, and I'm really starting to dislike EA Origins. I'm sorry EA, I'ma let you finish, but Valve has the best software distribution in the world.
They're just cutting off their own legs by keeping their titles from being cross-platform selling. Why can't we have it on both Steam and on Origins, or have it work in tandem between the two?
I agree with absolutely everything you have written here. They know damn well that they are making a ton more profit on digital distribution, yet are not giving is a break at all. Some of the prices on Xbox's Games on Demand are absolutely hysterical. Why am I going to pay you when I can go to the store and buy it used for $10 or $20 less? Even buying it new at the store would be cheaper.
They seem to want us to hate digital distribution. I don't know a single person who is buys any digital games that are more expensive or the same price than their retail brothers. You publishers have to give me a reason to buy from you. Make me your friend. Asking me to pay the same or more than the cost of the retail product makes me your enemy.
And I will just end up buying it used. This all or nothing approach you guys have is costing you sales. Charge us $10 less. You still make a much better profit, and we save some $$. Otherwise, used games is where i'll stay.
Apology NOT accepted. You think you can just come in here, double post your way onto my **** list, and expect me to forgive you? Does this look like a damned day care center to you? Am I supposed to hold your hand, wipe your ass and make you a sandwich too? All because you don't have the damn patience to wait one god damn minute for the server to catch up?
You can go kiss a tree. Your evil doings will not go unpunished sir.
Nah, just kidding. You're forgiven. I'm watching you though....closely...
This has been my one major issue with DD for about idk how long. As good of a way of buying games as it is, the price gauging is just fucking stupid. Lost Planet 2 is still $40 on Steam, while the console versions are $20.
This is being exacerbated by retail copies of most PC games simply being the digital copy sans the download requirement. I picked up Civilization V from Amazon over the week leading up to Black Friday for $30, which was my "buy in" point. I loved the demo and knew I'd play it tons, just not all the time, so $50 from the start wasn't going to sit well with me. Thing is, even though I bought a retail copy, my license is tied to Steam, so I can't trade the game or even give it away if I wanted to.
I like the idea of digital distribution just like the author, but agree that the price points need to incentivize giving up actual rights of ownership in favor of convenience.
Unlike music and movies, video games still aren't mainstream enough to fully survive in digital form. Movies and music are permanently ingrained into popular culture. While video games are referenced sometimes, we still don't have dedicated media outings to video games. They're still considered by the mass majority to be childish toys that people grow out of while music and film are cheap, disposable, and "sophisticated". Retailers target the casual audience who like to pick up a physical box, read the contents, flip through the manual, and ask people questions. Nintendo "won" the console war because they targeted that audience who wanted a cheap toy, not an expensive media station: it worked for them but bombed for third parties trying to release a legitimate product.
We have to understand the place of video games. Digital is still in its infancy and retailers are still killing all digital outlets. If you're posting on this website, you're savvy enough to know better. The other hundreds of millions can't imagine anything other than a brick and mortar store to walk into.
Well fuck.

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