Even americans could get Metro at launch for 48 dollars instead of 50 on EGS before EGS entered the picture.
Europeans and other non-americans could get Metro for 48 euros before EGS entered the picture, and then only for 60 after EGS got the exclusive.
If you care about good prices for customers, you can never defend product exclusivity to single store.
2 dollars? That’s a rounding error, if every there were one. Anyway, I don’t really understand how GMG gets away with bigger discounts then steam.
Moving on, I don’t see stores being a huge part of the equation for price reduction. I mean, sales and the like are highly visible, but they are all sales on the base prices we have already seen. That is why, on the Bargain Thread, the words lowest prices mean more to me then just another game on sale.
I think the bigger competition is between publishers. There are only so many dollars/euros/ponds that a person will spend on entertainment, and if multiple FPS games come out, I think people get a bit price sensitive. Especially at lower price points, where more bargain shopping is done.
And I think that’s where Epic coming along is a game changer. By charging only 11% instead of 30%, publishers, over the long term, should be able to charge less per sale to get the same profits. This hasn’t happened yet, but that’s because Epic is a relatively small player, with really only a few AAA games on it. Over time, the extra revenue should allow publishers to start under cutting each other, Driving the price down.
At least, that’s my understanding of how markets work.
And of course, this makes the argument that games are relatively elastic (which some die hards might disagree with). As I mentioned, I try to get the most bang for my buck, so if I see a several games on sale, I buy the one that has the most value.
You are incredible.
Really incredible. We are talking about a matter of principle here.
And it wasn’t 2 dollars for anyone outside US. It was 15.
And I already explained you how. They lower their own cut. It is not rocket science. And definitely not something that should need to be explained twenty times.
Epic’s lower cut leading to lower prices would be good. But it will not happen if exclusivities exist.
And epic lowered there own cut compared to Steam. So, that should all work out.
I mean that is the point, the store lowers their cut, reduced prices. So, if Epic lowered their cut, then the fact that prices haven’t changed could mean that it’s the publishers that make the final call.
KevinC
5641
You don’t see how free markets and competition work? Let me introduce you to Comcast, data caps, etc. in places they don’t have to compete.
This is nonsense. That’s not how businesses operate. The vast majority will pocket the added profits and consumers won’t see anything. Ubisoft and EA get 100% of the money from sales generated from their own stores. How much cheaper are games on Origin or Uplay? How much did the cost of games from US developers go down after the tax cuts?
But, as was mentioned, the stores don’t set the prices. The publisher does. The stores arent competing.
And the publisher compete on price. But if the price set by steam, if Steam is the norm, then the prices won’t change
Grifman
5643
But that is irrelevant. Of course the publisher sets the price of what they sell to storefronts. That shouldn’t be anything surprising - why is that even being discussed? I assumed people were talking about publishers setting the sales price to consumers, not their price to storefronts… What matters is the price being paid by consumers. And it’s quite clear that publishers don’t set the sale price as GMG and other storefronts show.
The publisher set the price to the consumers. It said so on the steam guide. The publisher also decide on the sales.
That they allow GMG lower prices at times, that’s all part of the game.
Grifman
5645
What world are you living in? GMG set their own prices. Just go look at their home page and look at all the new and upcoming games that they are currently offering at a discount compared with the Steam price.
KevinC
5646
Well the stores certainly aren’t competing now because Epic is locking them up behind exclusives. But if you can buy your game on Steam or buy your game on EGS or somewhere else, they do have to compete. Ubisoft did it buy giving you points you could redeem on Uplay for discounts on other games. Different stores run sales. And if all else is equal, they compete on features, shopping experience, etc.
Do you think prices and services on Amazon would be what they are if they had no one to compete against? If the only place you could buy HDMI cables or diapers was Amazon?
Discounts, which are allowed by Steam, but only if similar sales are on the steam store.
Again, you are making claims about physical goods and physical services (such as Comcast) and comparing it to the digital market.
I believe they are very much different.
In a real store, you buy, and house the merchandise. On the digital market, you are just a vendor. A middle man.
KevinC
5649
But we’re talking about the fundamentals of competition.
Again, tell me, how much cheaper are those games on Origin? I’m still waiting.
Of that were the case, why did we get a huge sale on Epic recently? 10 dollars off a 15 dollar game was huge.
As for Origin, are the prices that far off the average? They have sales and discounts. Heck, 5 dollars for Mass Effect Andromeda happened.
KevinC
5651
Because summer months often tend to be a lull in the market and companies are looking to increase revenue for the quarter. Sales draw people in and get them to spend money on games where they weren’t going to at the existing price points.
How much cheaper did games on Origin become once EA moved them there?
KevinC
5652
Stop digging up and carting off the goalposts. You’ve made claims that the 88/12 split will lead more profits and hence lower prices. With Origin, EA gets a 100/0 split. How much cheaper have their games become since moving exclusively to that storefront?
And I am also making the point that you need downward pressure to make that happen. As long as steam takes 30% from most game sales, publishers won’t feel comfortable reducing their prices, and so they won’t be able to undercut their competition.
But, change the equation for the whole industry, and you will see more downward pressure. You see that with solar panels and other high tech gadgets or even low tech ones. Competition drives down prices, but only if prices can go lower.
Origin has several cash cows. They won’t reduce their prices until other publishers start to do the same.
But we are getting into the realm of ‘why do games cost that much’.
Anyway, Epic, for those of us in the US, has already show ln part of the price 49.99. Isnt that less the most AAA games?
KevinC
5654
Here’s Madden.
FIFA:
Need for Speed:
Where are the savings? If we can’t see savings there, why would we see them at a 88/12 split, especially when they can only be obtained via EGS?
KevinC
5655
EA doesn’t have to worry about Steam’s cut, because they’re not on Steam.
Why are EA’s games not cheaper?
Nesrie
5656
There is no downward pressure for them to change prices just because they realize more money themselves.
