Wow, who could have seen that one coming, huh? Some UK-based publishers have called for an end to the "price wars" currently being waged by retailers in the run up to Christmas, warning that it could do more harm than good in the long run. Prices are being slashed left and right, and games industry folks don't like it.
"Price cuts in an industry which shines above the gloom can only be the strategy of those concerned that their mode of delivery to the consumer is facing threats, and they are doing their best to accelerate their own demise," warns Codemasters CEO Rod Cousens.
UK supermarket chain Morrisons recently ran a stunning promotion where it was selling brand new releases at some ridiculous prices. This is something that Sega's UK wing has frowned upon. "We have seen the loss-leading activities that Morrisons ran before, and it is not something that Sega would encourage," states Sega's UK MD Alan Pritchard. "Development costs are not getting cheaper so it is important for retailers to sustain full SRP points."
Activision’s UK MD Andrew Brown has joined Sega and Codemasters in urging retailers onto another path, suggesting that they should "drive growth by developing improved in-store solutions, rather than forcing the prices down."
Hit the jump for more.
Regardless of what the publishers say, retailers are firm on their position that price cuts are the answer. Asda software buyer Andy McFie states only that he feels his company is "offering great value" to its customers with the lowered game prices, and suggested that further price slashes would come due to the competitive nature of the retail business.
Dominant specialist retailer GAME has also weighed in, re-affirming that lowered prices were here to stay. "The UK games market is very competitive and has been for years," states a GAME rep. "We remain focused on our offer and are confident in our proposition."
As for Woolworths, a store which has recently started selling all chart DVDs for under £10, it was incredibly blunt in its answer to this issue: "We are always looking to cut prices on our games."
This is a thorny issue, and not as clear-cut as we may think. While the obvious route as consumers is to accuse publishers of being greedy while we revel in our cheap games, there is a kernel of truth in some of the warnings. Devaluation has the potential for long-term affects on the industry and the economy in general, even if we enjoy our savings in the short term.
Does that mean the publishers aren't being self-serving, or that games aren't ridiculously expensive? Hardly. But just because they're looking after number one, it doesn't mean that their words shouldn't be taken into consideration in this circumstance.
[Thanks, Wardrox]
Contest:
9:11 PM on 09.26.2008
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Retailers can charge whatever they want and it should not affect the Publishers in any way... or am I missing something glaringly obvious (which I probabaly am)?
If stores can buy "x" amount of games, why are some people in the UK just now getting Rock Band? UK retailers should have been able to buy copies from the publisher(everyone likes money), and then sell them to the public?
First they cry because of piracy, then they cried because people were buying second hand games, now they cry because everyone is buying new games but they are too cheap.
I have never heard of an industry that whinges as much to its consumer base as the video game industry. Man-up, you fucking nancy boys.
Oh and Jim, in a market where piracy and used game sales are rampant, I'd say their opinion most definitely shouldn't be taken into consideration - masses of consumers are telling the industry in the only way they can that their games are too expensive, but rather than lisen to their audience the industry tries to force its prices onto us.
The greed of publishers is the only thing that does harm to the industry, plain and simple.
Short-term holiday price slashes aren't really an answer to the problem of expensive games.
This is just an educated guess but I'd say that the retailers are predicting a severe drop in the sale of games, dvds, etc.
Thusly in order to 'head this off at the pass' as it were. They do the only thing they know how to do: drop prices and try and flog as much as the percieved deadweight as possible. This way they can keep things moving by only having the latest releases at any given time. No games left to 'rot' on shelves.
But as Jim says: 'Short-term holiday price slashes aren't really an answer to the problem of expensive games.'
Though to be fair, I bought Dragon Quest 4 DS at full whack.
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I still dont get why CoD4 is almost full price pre-owned still :(
Cry some more, nobody has just cause to whine here.
Perhaps consumers share a bit of responsibility in all of this as well. Now, I am not saying that consumers should expect and welcome shit. However, if 'we' continuously expect developers to throw everything and the kitchen sink into a game, then games with large budgets are going to continue to balloon to new heights.
*bails out*
the fault is all the publishers only wanting $$$$$$$$$ iso wanting to release a fully stable and decent product... Just like that SHIT with Fable2 NOT having co-op from the start... that's enough for me not to get the game... what if in 10 years you want to play it again? You'll prolly only be able to use what is on the disc at that time, and since co-op isn't on it, forget about it...
If a moviedvd gets released with an error, they do full-recalls, if games leave the factory "slighty working, might crash whatever it runs on and needs warpdrive-engine for decent FPS" is more then good enough cause there will be enough fanboys to pick it up anyways... and for the others they'll just "patch" the game and then the fanboys will be there to exclaim praise on the "comitment _their_ company has to them" while the game SHOULD HAVE BEEN DELIVERED WORKING!
Yay Capitalism!