[casual_games] Price as Signal

Tue Dec 13 19:02:17 EST 2005

It has nothing to do with the cost of making the game. It has to do with
the perceived value by the customer. If the customer believes they are
getting $20 worth of value, then they'll pay $20. I'd argue that a game
like Bejeweled or Zuma, which offers hundreds of hours of entertainment,
is well worth $20 (100 hours = $0.20 / hour). A game that you play once,
and then are done with, might offer much less value (20 hours at $50 =
$2.50/hour). Your typical movie is even more expensive (2 hours at $10 =
$5/hour).

One way to turn it around for the person asking the question is to
compare it to movies. Kong was rumored to cost $200 million to make,
whereas a film like the Blair Witch Project might cost only a few
million, but they both cost $20 to buy on DVD or $10 to see in the
theatre. They both offer similar entertainment. Why should the cost to
manufacture have anything to do with the value provided?

---------------------------
James Gwertzman
Director of Business Development
PopCap Games, Inc.

-----Original Message-----
From: casual_games-bounces at igda.org
[mailto:casual_games-bounces at igda.org] On Behalf Of Lennard Feddersen
Sent: Tuesday, December 13, 2005 2:52 PM
To: IGDA Casual Games SIG Mailing List
Subject: Re: [casual_games] Price as Signal

I think that article and a list of other reasons besides, illustrate why

price dropping & price wars are not a great business idea.

What I'm looking for is a great reason for the end consumer or reviewer 
who legitimately wants to know why we - not Rusty Axe Games (geez, my 
acronym is RAG, crap) but all of us, cause I know nobody is, yet, 
spending millions on these titles - are charging the prices we do.

Ultimately the answer is, "it's good software and that's what it costs 
if you want to have it", but I'm looking for a more eloquent phrasing.

Lennard Feddersen
CEO, Rusty Axe Games, Inc.
www.RustyAxe.com

Lennard at RustyAxe.com
P. 250-635-7623 F. 1-309-422-2466
3521 Dogwood, Terrace, BC, Canada, V8G-4Y7

Tom Park wrote:

> http://joelonsoftware.com/items/2005/11/18.html
>
>
> ----- Original Message ----- From: "Lennard Feddersen" 
> <lennard at RustyAxe.com>
> To: "IGDA Casual Games SIG Mailing List" <casual_games at igda.org>
> Sent: Tuesday, December 13, 2005 1:12 PM
> Subject: Re: [casual_games] pricing
>
>
>> /When I worked at Pogo, we would sell our download games for $19.99 
>> online but
>> $9.99 at retail because those were the most effective price points
for
>> us in those channels.
>>
>> /That's really interesting to me - I had always assumed that you 
>> would cannibalize sales if you did that - or deal with a bunch of 
>> cranky consumers demanding money back.
>>
>>
>> Lennard Feddersen
>> CEO, Rusty Axe Games, Inc.
>> www.RustyAxe.com
>>
>> Lennard at RustyAxe.com
>> P. 250-635-7623 F. 1-309-422-2466
>> 3521 Dogwood, Terrace, BC, Canada, V8G-4Y7
>>
>>
>>
>> Dave Rohrl wrote:
>>
>>> The right price is one at which a willing buyer and a willing seller
>>> meet and it varies not only by product but also by channel.  When I
>>> worked at Pogo, we would sell our download games for $19.99 online
but
>>> $9.99 at retail because those were the most effective price points
for
>>> us in those channels.  If possible, I would encourage you to test
>>> multiple price points in a limited release - maybe through your own
web
>>> site - to see where you will make the most money with your current 
>>> game.
>>>
>>> And as far as the Doom 3 argument goes, I don't think it's terribly
>>> valid.  Doom 3 isn't worth $50 to your target customer - it has no 
>>> value
>>> whatsoever to them.  I do think that argument is valid where people
try
>>> to do hard-core games and genres in the download space, which is one
of
>>> the reasons that people haven't seen much success with combat flight
>>> sims, core sports, etc. in the download space.
>>>
>>> As far as "just moving the mouse and clicking the button", that's 
>>> pretty
>>> much what I did in Diablo as far as I can recall ;)  Simplicity of
>>> interface is never a bad things for a game - think of Katamari - but
it
>>> may be that the reviewer is trying to call out other issues for you.
>>>
>>> - DaveR
>>>
>>> -----Original Message-----
>>> From: casual_games-bounces at igda.org
>>> [mailto:casual_games-bounces at igda.org] On Behalf Of Lennard
Feddersen
>>> Sent: Tuesday, December 13, 2005 10:37 AM
>>> To: casual_games at igda.org
>>> Subject: [casual_games] pricing
>>>
>>> My companies latest game, Battle Castles, has been venturing out of 
>>> the casual space sandbox where reviewers often ask the same question

>>> I do about what we make.
>>>
>>> How come $20 for this game where I just move my mouse and click the
>>> button?
>>>
>>> I know that people either like what you make and buy it or they 
>>> don't and that often those who are complaining wouldn't pony up $10 
>>> either.  I
>>>
>>> know from personal experience that games priced at $24.99 can vastly

>>> out
>>>
>>> perform titles at $14.99 - perceived value is a real thing.  That 
>>> said, my game didn't cost 1/3 of what Doom 3 cost to make and there 
>>> are lots of multi-million dollar titles down at the local video 
>>> store on sale, in
>>>
>>> shiny packages for $20.
>>>
>>> Anybody have a fresh new take on this one?
>>>
>>>
>
>
> _______________________________________________
> Casual_Games mailing list
> Casual_Games at igda.org
> http://seven.pairlist.net/mailman/listinfo/casual_games
>
_______________________________________________
Casual_Games mailing list
Casual_Games at igda.org
http://seven.pairlist.net/mailman/listinfo/casual_games