[casual_games] Price as Signal

Lionel barret De Nazaris lionel.bdn at free.fr
Wed Dec 14 03:02:00 EST 2005


James Gwertzman a écrit :
> Why should the cost to
> manufacture have anything to do with the value provided?
>
> ---------------------------
> James Gwertzman
> Director of Business Development
> PopCap Games, Inc.
>   

Because you have competitors (people who make games with the same 
perceived value as yours) who would underprice you if they can.  If you 
cannot set the price in the same price range as your competitors then 
you're dead.
And how do you decide ? you look at your production cost and the 
estimated lifetime of the product, the estimated number of game you will 
sell. Those variables decide if you can lower your price and turn a 
profit in a *reasonnable timeframe*.

It's true that we have almost no inventory cost, and no manufacturing (i 
mean copy) cost, so in the long term  any game will make  a profit. But 
who can wait 2 year to have a return on investment ? Even waiting cost 
money.

-- 
Lionel Barret De Nazaris
=================================================
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