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?
Again, please skip me from the contest, I don’t have the spare time to finish games I’ve started on Christmas, never mind starting new ones.
… at some point two guys decided to play a prank on their boss (1st of April). They photoshop-ed a picture of one of them to make him look like a mobster – car boot full of guns, that sort of sh!t – then the other one ‘leaked’ the photos to their boss.
Both of them got fired. Something to think about, Paul …
@Cruel April Fool’s Joke posts fake Half-Life 2: Episode Three Steam page
Oh yeah … this is among the cruelest ones. Jonah, a lot of people fear that Valve remained just an online store. On the other hand, they did release Portal 2 after Steam got big. On the other hand, both Portal, DOTA and TF are game/game mechanics that were developed by outside teams, then bought by Valve.
@Path of Exile to feature yearly major expansions
Paul, sorry, I had no idea what you were talking about – Jonah was right.
@Former Diablo III director states the auction houses were a mistake
The problem with former developers is that they can be labeled as disgruntled employees. He is actually right about the fact that Blizzard enjoys the cut.
@EA prez Gibeau: “DRM is a failed dead-end strategy”
Re he heeealy? Diablo III, Starcraft II both use MMO-like techniques in otherwise valid single player games, but apparently not for the massive multiplayer experience.
And now, having these previous examples in mind, I’m expected to believe that you aimed for an MMO to begin with?
Nice podcast guys! I remember one of my friends set his co-worker’s startup sound on his computer to a clip of around 5 minutes of silence, and then random beeps for about 5 more minutes after that. It really drove him (the co-worker) crazy because he didn’t know where the sound was coming from!
@Half-life 2 Episode 3: Yeah that really was a cruel one. Imagine if they actually did release “Episode 3” when October comes along! I would like to see how people react if that actually were to happen.
@Diablo 3 auction houses: It really was a big mistake by Blizzard, and it will be interesting to see how they will try to increase sales along with the Playstation release.
I look forward to future podcasts and I hope I can win that copy of HotS! Thank you guys for doing this.
@Half-Life Episode 3
Man, what a cruel joke. It’s like playing Duke Nukem Forever after waiting for 12 years. As a side note, the best April’s fool I remember was an advert for a personal domestic mini nuclear reactor that would solve all your energy problems for the next 50 thousand years. All the power of Chernobyl in your bedroom.
@Fifa’s Creed 2013
No they don’t want an Assassin’s Creed every year. Shut up, Ubisoft. You know nothing. People don’t want a yearly update of a game unless it has two dozen fit sweating men in boxers kicking balls on a grass field.
@Diablo 3 is already out?
Action House hurt Diablo 3. As opposed to DRM which made everyone happy…I would never use the auction houses because paying real money for digital code that may or may not have been obtained illegally is not what I want. And from what I hear, if you don’t use the auction house you will be put at a disadvantage. Maybe I will play the console version at some point.
@EA’s public image smells a lot like DooDoo
If he would spit any more bullshit, EA could start selling it to farmers and open up an agriculture business. Trying to cover your own ass at the expense of hard working employees. Capitalism at it’s finest.
@Topical Burn: Starcraft 2:Heart of the swarm
If you never played Starcraft 2, now is the best time to start. You won’t get much competition online since the Koreans are too busy pointing nukes at eachother…
@Half-Life 3
Don’t we get the same joke every year on April Fool’s with that game? It’s not easy to admit but my really conscious first contact with the game was the Black Mesa game that came out some time ago on Steam. I really enjoyed it but I don’t think that’s enough to make me go back to the original games with all the recent games still waiting to be played.
@Assassin’s Creed
Arthur made a great point about FIFA and other sports games, as a matter of fact. EA Sports don’t really change much in those games between the editions and people still buy them. The most obvious example of crappping on your customers is the PS Vita edition of FIFA which this year was a glorified roster update. I’m afraid AC will become something similar. A couple of new missions here and there but nothing new and exciting. New IPs, please. There’s demand for that.
@Starcraft and Koreans @Arthur V
With all the training they had since the first Starcraft came out, I doubt North Korea stands a chance…
Oh, by the way. Thanks Paul, for sticking up for me last week 😉 I assume next time there is a region-free giveaway I’m first in line 😉
@Diablo 3
The auction house is indeed hurting the game, due to the fact that people can flip it, which is crashing the market. Along with that, botters are putting MASSIVE amounts of gold on the market, causing items to become extremely overpriced. And Blizzard doesn’t care due to the fact that they are receiving a $1 cut from each sale.