6,200 Reasons To Buy iPhone/Touch Games

The iTunes App Store is jam packed with video games! There are 6,200 games in the App Store to take advantage of, with 23% of those games for our puzzle gaming friends with arcade following a distance second place with 13% App Store market share. In that bulk of games, 1,485 are free download games but we’re not sure how many are “lite” versions of pay-for-games in the store, with limited game play. If you too are looking for ways to optimize your phone, see here the plans available at Circles.Life mobile.

chart-app-store

Apple could cut down on that clutter if they let developers publish one game with a demo/shareware release and a full release, perhaps than we would be able to wade through a realistic amount of game titles. Of course, Apple isn’t exactly the most friendly of companies when it comes down to allowing us to share our thoughts and opinions of their closed box products.

Unfortunately for the new game developers, they’ve got a few games to compete against in the App Store space. While great games should rise to the top like cream in your coffee, it’s obvious that 6,200 items can clutter up an otherwise friendly space. iTunes tends to have a very unintuitive interface and isn’t really built for great online game shopping experiences, we’re sure they can exploit many of the great games in this archive of titles if they had a bit of a re-design.

You’ll find plenty of educational games in the 6,200 titles, matching if not exceeding that of the strategy genre.
(Thanks, kotaku)

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Wallets Shrink, Used Game Market GrowsWallets Shrink, Used Game Market Grows

Over the last year we’ve seen developers scrambling to find “value add” features to new game purchases. Their goal is to convince the customer to buy new instead of used because developers don’t see a penny from a used game sale. While GameStop sees 48% profit margins from the used game market developers struggle to stay floating in the industry.

for-saleThis is not the fault of GameStop and their 48% profit margins because they’re only getting 7% to 20% profit margins (say analysts) on new game sales. As someone that’s run a game store online, if you’re getting 15%+ on a new game you’ve got some great hookups in the distribution channel or are buying in huge quantities.

Buying games in huge quantities to build profit margins can be a huge mistake in this industry. Gamers are fickle little creatures and they’re going to buy their top tier games for a few weeks and then sales will drop significantly. No retail chain wants to purchase a thousand copies of GTA IV (only as an example) and sell seven hundred over the first few week to be stuck holding onto a few hundred copies when the dust settles. Now you’ll have to put them on sale to get them out of the store because the hardcore gamer have already done their shopping and you’re not going to get any price protection if you’re not a major player in the industry.

Why take 7% profit margins when you can get 48% on a used game? The gamers don’t seem to mind because they’ll trade in a used copy of a sports title like Madden to save $5.00 on the latest franchise release. Gamers will buy Fable 2, beat it in a week and rush to the store to get the “most for their dollar” before the game gets stale and buy-back prices drop like a stone. Why not rent Fable 2 and save yourself $50.00? Of course, renting pisses off developers as well because they see no additional revenue.

While the economy struggles and consumers fight for their jobs, the entertainment side of life continues to grow. People would rather “cocoon” in their homes playing video games and watching movies on their brand new HD television because it takes them away from the low points of the economy if only for a few hours. History has shown us trends in entertainment during the down points of economies, it’s natural to want to get away for a bit.

But, consumers want to play these games on the cheap because their job may not be there tomorrow. Saving $5.00 knowing the store just took the title in for half the price doesn’t bother you; $5.00 in your pocket is better than in their pocket right? The fact that they just pocketed upward of 40% on the game doesn’t matter to you — it’s all about your bottom line!

While we’re bargain hunting during the recession developers are going to try and up sell you to a new copy of the game. If that means giving you special game items and features with a “one time code” upon purchase, it will be up to you to decide if it’s valuable. All the while GameStop will lock out the game industry from selling used games because 42% of their overall gross profit is from used game sales.

You, the consumer, benefits from a slightly cheaper game, bargain bin fire sales and additional game features if you do choose to buy new. The economic down turn is a great time to be a gamer, as long as you remain employed.

3 Reasons Publishers Desire Us to Keep Old Games3 Reasons Publishers Desire Us to Keep Old Games

When we invest in a new video game we want to feel satisfied by the content supplied in the game, we want to know we’re getting our moneys worth in the investment. Publishers, on the other hand, want us to keep our old games so they stay out of the used market. A publisher does not make a dime on used game sales. Their primary weapon to stop game sales? Downloadable Content (DLC).

1. Publishers Spend Lots on Marketing

A great example being GTA IV, hardcore gamers have a short attention span and live on hype more than physical games. Today, games live in press releases, demos, cinematic and live gameplay footage at conferences and on the web. Then, a game hits the shelves and sells millions of copies for a week or two before it’s forgotten. Publishers have marketed their game well, spent thousands on conference booths, streaming video bandwidth and rushing game demos through development and testing cycles early to get eyes on their titles.

Let’s face it, gamers that scrambled to buy Grant Theft Auto IV have moved onto the next big title or have decided to go outside for some fresh air (probably the former). Hardcore gamers consumes games like candy, sells them off for store credit and works towards their next purchase.

2. Publishers Want Loyalty

DLC breaths new life into old games, making them remain valuable for months after the hype and excitement has died. We’re now spending USD $60.00 for some of these new “current generation” game titles for a few days or weeks of excitement. Free downloadable content brings new reasons to play our “old stale” games and allows us to feel comfortable about our 60 bucks spent on a title.

Rainbow Six Vegas 2 is receiving a new “Fan Pack” for gamers to re-energize themselves about the “old” sequel to Rainbox Six Vegas. A game released in March is considered old by gamers, probably rarely played on Xbox Live anymore and needs something to keep the fans interested. This helps build loyalty to your product so the next franchise title which is released has a better chance of being purchased by your fan base because they can look forward to additional free content in the future.

3. Publishers Hate Used Games

Publishers are helping stick those games in the hands of the gamers for a longer period of time by supplying free add-on packs. Why would you re-sell your precious title back to the store when you could hold it and wait for potential DLC?

Publishers receive no revenue from the resale of a video game so it’s in their best interest to keep it out of the used markets. If there is a chance your beloved game will receive new features, at no cost to you, wouldn’t you hold off from selling it to see what’s coming?

Once a gamer has sold their title to a retail chain for pennies they’re unlikely to re-buy the title with the typical 80% markup when DLC arrives. They may opt to borrow a friends copy or rent the title rather than re-purchase it; neither fair well for the publisher in terms of revenue.

Games are expensive. Consumers must be wise to the best value in their video game titles and publishers want you to choose them for your gaming entertainment. Competition is high, profit margins are low and the market is all about sales volume. Publishers want repeat customers, people who feel their games are valuable before and after the purchase and are willing to share their loyalties with others.

Do you collect old console games, or do you sell them off to game stores and/or eBay? Would you consider holding off a sale if there was a great chance of new downloadable content?

Episode 396: Getting TargetedEpisode 396: Getting Targeted

This week’s episode is very long to make up for the crappiness of last week’s episode, and the crew have fun with the trolling of Target critics this past week.

The news this week includes:

  • Guillermo del Toro quits videogame development
  • There is no suspend feature for Steam Machines
  • Gamescom sets attendance record
  • Chinese console crowdfunding project manages to rip off PS4 and Xbox One

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