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RE: Pricing Hurting Sales?

 
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RE: Pricing Hurting Sales? - 5/15/2013 4:37:34 AM   
robc04

 

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Because how it typically works with games is that if you want it bad enough and don't want to wait, you pay full price. If a customer is more patient and isn't in a rush to get a game they typically get a better price. There shouldn't be anything insulting about that. Matrix so far hasn't decided to follow this trend and it is perfectly within their rights to decide what their pricing model is.

It especially makes sense for products in digital format because the costs are pretty much sunk costs. Once the game is developed there shouldn't a lot of additional costs that increase due to additional sales since there isn't typical manufacturing costs or maintaining inventory. Once the publisher feels like they exhausted a price point it makes sense to lower the price to draw in more customers willing to buy the product at the lower price.

The tough part is deciding when the right time to lower the price is and lower it by how much to maximize profits.

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Post #: 241
RE: Pricing Hurting Sales? - 5/15/2013 6:29:44 AM   
whiran

 

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The question that was asked of if the pricing is hurting sales has a simple answer: Yes, it hurts sales.

The question that isn't being asked but was answered by the publisher and which answer has subsequently been ignored: Does the publisher care?

That question has a simple answer as well and the answer is: No, they don't care because they generate enough sales for what they want.

Not everyone wants to maximize sales or profit. Some companies are content with making enough to pay the wages and overhead.

Distant Worlds has a devoted following who are willing to pay the price that is being asked and, as such, Matrix Games is managing a basic sales principle well: you can sell a product for whatever people will pay for it. If they feel that enough people are buying the game then that is good enough for them and no matter how much we talk about pricing there is no reason for them to change it. They have achieved success as they measure it.

I wouldn't mind trying out Distant Worlds but as I noted before I am not the ideal customer for the game since I only have an interest in the possibility of playing the game. This game isn't particularly high on my interest list since it is a real time 4x. I'd probably do better with Star Drive if I really wanted to pick up a 4x. I'm watching Das24680's let's play and that has my excitement level high enough to trigger my interest enough to come here. Once the let's play is done I'll probably forget about Distant Worlds until the next time it comes up sometime in the future and I'll probably check in with it again then.

That being written, Panman, there is an "ignore" function for forum threads: don't click on them. ;)


(in reply to robc04)
Post #: 242
RE: Pricing Hurting Sales? - 5/15/2013 7:30:15 AM   
Erik Rutins

 

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Hello Whiran,

That is incorrect. I have no problem with discussing price, but please don't assume that you can read our minds. People can disagree and still have very good and well founded reasons for having different opinions.

We do care and we are charting the best course based on our experience and data, not the course we feel is just adequate.

Regards,

- Erik


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Post #: 243
RE: Pricing Hurting Sales? - 5/15/2013 8:00:33 AM   
Kayoz


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quote:

ORIGINAL: whiran
The question that was asked of if the pricing is hurting sales has a simple answer: Yes, it hurts sales.

I think Erik has answered this one repeatedly - "we are promoting it to the best of our experience and based on our best data". I think it's safe to read that statement as to include the price they've chosen for DW. To suggest that Matrix engages in masochistic business practices and consciously hurts its business development by overpricing games, is ridiculous. They have every motivation to do everything they can to maximize their profits.

Might I draw your attention to the words "best data"? Since you have no data - and Erik does - your statement that it's hurting sales is based on, well, nothing at all. If you need further guidance on what an assertion based on no data is worth, please refer to the quote below in my sig.

quote:

ORIGINAL: whiran
The question that isn't being asked but was answered by the publisher and which answer has subsequently been ignored: Does the publisher care?

That question has a simple answer as well and the answer is: No, they don't care because they generate enough sales for what they want.

You've completely ignored Erik. He has repeatedly and very directly - and I have every reason to believe he has is honest about this statement - that Matrix has every desire to see DW as successful as possible. To say that the bods at Matrix don't care is plain ignoring the evidence. His posts contradict this statement. The development history of DW (changes due to player's complaints/suggestions) goes against this statement. The sole basis for your claim that Matrix doesn't care seems to be that they do not run their business as you would. It strikes me as supremely arrogant and ignorant for one to make such a statement.

quote:

ORIGINAL: whiran
Not everyone wants to maximize sales or profit. Some companies are content with making enough to pay the wages and overhead.

This statement says everything as to your exposure to business owners. For the most part, I find the most successful businesses to be run by greedy, sociopathic deviants. But that probably explains a lot as to why they're successful.

quote:

ORIGINAL: whiran
you can sell a product for whatever people will pay for it...no matter how much we talk about pricing there is no reason for them to change it.

Nothing in that statement could not be applied to any and all businesses. That's how they work. It's called capitalism. No business that can think of will change its prices solely because people complain. Do petrol prices to drop because people complain? Does Toyota drop the price of the Lexus because people whine about the price? Does McDonalds drop the price of the Big Mac because people say they should sell it for less? No, they change their prices due to market forces, or their interpretation of them. Those businesses that fail to do so inevitably fail. Unless the business in question has a no-bid "profit-plus" contract - but not every business can be Halliburton.

Matrix cannot charge whatever they want, purely because they wish to. If they charge too much, they will alienate their customer base and open the doors for a competitor. if Matrix is charging high prices and you disagree with it, then don't blame them - blame their competitors for not turning out products to capitalize on their mistakes. This is not Matrix's error.

quote:

ORIGINAL: whiran
They have achieved success as they measure it.

Matrix has every reason to want to increase their profits. In my limited understanding of their business, I have seen absolutely nothing to suggest that Matrix has achieved all they want. No more than, for example, Richard Branson has for amassing wealth. If they can make more money by changing their practices, I have every reason to believe that they will do so.

Nothing - absolutely nothing - supports your statement.

quote:

ORIGINAL: whiran
I'd probably do better with Star Drive if I really wanted to pick up a 4x.

If that is your choice, then I believe the old dictum, caveat emptor applies. Best of luck with that - I suspect your interest in 4X games will die with a quiet whimper.

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Post #: 244
RE: Pricing Hurting Sales? - 5/15/2013 9:16:41 AM   
Bleek


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quote:

ORIGINAL: Kayoz


quote:

ORIGINAL: Bleek
Ok, FYI I'm the director of a marketing agency in the UK.

argumentum ad auctoritatem. Don't expect it to get you much traction.


Keyboard warrior? This thread is nauseating. I'm out.

(in reply to Kayoz)
Post #: 245
RE: Pricing Hurting Sales? - 5/15/2013 9:21:02 AM   
Bleek


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quote:

ORIGINAL: Buio
Doesn't really help you when you are wrong. I can look at many games proving what I said, even if there are exceptions too of course.


No. You're wrong.

Sales are NOT just for products that don't sell.

(in reply to Buio)
Post #: 246
RE: Pricing Hurting Sales? - 5/15/2013 9:33:54 AM   
Mansen


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quote:

ORIGINAL: Buio

And you are forgetting one thing. Do you think it saturated or sales are low when they continually are doing expansions for the game? Three expansions and talking about a possible forth are really unusual in games, even if you count large DLC.


And the fallacies continue - making new expansions has nothing to do with the price of existing products. Do you repurchase the base game every time you purchase a new expansion? I thought not.

(in reply to Buio)
Post #: 247
RE: Pricing Hurting Sales? - 5/15/2013 10:01:26 AM   
Kayoz


Posts: 1516
Joined: 12/20/2010
From: Timbuktu
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quote:

ORIGINAL: Bleek
Keyboard warrior?

You complain because someone points out that claiming to be a director of marketing for some hobnob company isn't going to get you traction? You were trying to use argumentum ad auctoritatem - there's little wriggle room for you to dodge this charge.

Hold on - let me try it:
I'm Elvis. I didn't die. So you should listen to me!

Your statement is about as likely to be accepted as mine. And I would expect, about as truthful.

_____________________________

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Post #: 248
RE: Pricing Hurting Sales? - 5/15/2013 10:51:12 AM   
hewwo

 

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Well, I'll chime in and say that I have been lobbying this game to my group of 4x playing friends for a while now. First they were 'what, its not on steam? I'm not going to bother', but after a few years I've got them to the point where they were totally willing to buy it, until they saw the price for the whole package and they said 'wtf! screw that' (literally). But obviously matrix can do whatever it pleases with its own products!

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Post #: 249
RE: Pricing Hurting Sales? - 5/15/2013 12:25:34 PM   
Bleek


Posts: 223
Joined: 10/26/2011
From: United Kingdom
Status: offline

quote:

ORIGINAL: Kayoz


quote:

ORIGINAL: Bleek
Keyboard warrior?

You complain because someone points out that claiming to be a director of marketing for some hobnob company isn't going to get you traction? You were trying to use argumentum ad auctoritatem - there's little wriggle room for you to dodge this charge.

Hold on - let me try it:
I'm Elvis. I didn't die. So you should listen to me!

Your statement is about as likely to be accepted as mine. And I would expect, about as truthful.


You're not a keyboard warrior but you still feel it's within your right to undermine me and other members on here?

You also feel it's perfectly acceptable to so flagrantly undermine me is quite frankly your shortcoming, not mine.

"Hobnob company"? To be frank here, you're out of order.

You know nothing about me or my business, I'm incredibly proud of what I've achieved and I don't take kindly to you making such dismissive remarks based on pure conjecture.

You need to remember and respect a forum is built around it's members, members from across the world and all walks of life. We aren't all of a certain 'type' or fit.

So I ask politely that you please refrain from insulting me.

(in reply to Kayoz)
Post #: 250
RE: Pricing Hurting Sales? - 5/15/2013 12:37:58 PM   
Bleek


Posts: 223
Joined: 10/26/2011
From: United Kingdom
Status: offline
I'd also like to add I appreciate this is a hot topic as price always strikes a chord.

Erik has responded and made his opinion known, he's also aware of the wider opinion on here and probably elsewhere too. The ball is firmly in his court.

I've already paid for my 'set' and so for my sanity and to avoid getting evermore embroiled in tit-for-tat, I'm going to step out of the discussion.... I only 'popped back' recently to comment on "Shadows" anyway!

< Message edited by Bleek -- 5/15/2013 12:38:17 PM >

(in reply to Bleek)
Post #: 251
RE: Pricing Hurting Sales? - 5/15/2013 3:19:46 PM   
Erik Rutins

 

Posts: 33809
Joined: 3/28/2000
From: Vermont, USA
Status: offline
I agree this is getting out of hand. Folks we hear you and I don't really want this turning into what these kind of threads often do, which is that it turns the community against itself. Everyone posting here shares an interest in DW and hopes it will have great success. I absolutely get that and it's a hugely positive thing. We wouldn't have a nine page thread on pricing if there weren't a lot of passionate opinions on this. I don't want this fragmenting the community though - let's focus on the game itself.

We hear you loud and clear on pricing and I accept that despite our data and experience we may be wrong. I can only say again that everything we have in the works is not yet public and we are not closed minded on this subject, we're just basing our decisions on the data we have access to.

Going to lock this up.

Regards,

- Erik

< Message edited by Erik Rutins -- 5/15/2013 3:20:34 PM >


_____________________________

Erik Rutins
Director of Product Development


For official support, please use our Help Desk: http://www.matrixgames.com/helpdesk/

Freedom is not Free.

(in reply to Bleek)
Post #: 252
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