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?
This week’s episode is the final episode before E3, and next week, an outtakes episode filled with Dr. Who and Game of Thrones discussion will run. After that, we’ll have some serious E3 2013 discussion, especially about what happens with Microsoft and Sony in particular.
Echo’s of Doom will be live when the systems come back for maintenance.
@Pachter predicts $349 for PS4, $399 for Xbox One
Interesting. I don’t see this happening though, the hardware behind them is basically identical. And for the same stuff, Sony has a history of running higher prices.
@World of Warcraft movie
*sigh* … why the hell not … I’ve seen Mario, Prince of Persia, so why the heck not. I mean it’ll have a ton of CGI, so does it really matter the origins of the story/script? For all it’s worth being “made after WoW” will most likely be used as a marketing tool to get more people in the cinema.
@Robert Bowling’s Robotoki raided by LAPD, mistake COD figure as armed intruder
… really? I blame the dev who pressed the panic button.
Jonah, Ghost is wielding an M4 with an M203 under-barrel grenade launcher and a red dot reflex sight. Not sure what to make out of the sound suppressor though.
@Documentary seeks to unearth 3.5M E.T. cartridges from landfill
… waste of time if you ask me. But hey, they have money to spend, the contractor has people to pay.
@Oculus Rift developer Andrew Scott Reisse, 33, killed as bystander in police chase
Manslaughter. That’ll be the verdict.
As for Andrew Scott Reisse, R.I.P.
@Shadow of the Eternals Kickstarter fundraising struggling
So I remember that at one point we were wondering when we’ll get the first failure on kickstarter. Now if I remember correctly, what we wanted was a project to meet the goals, but then to not deliver. This one doesn’t quite meet the requirements but still, it is the first project that could fail while still being under the spotlight.
@EEE
Didn’t watch any conferences. They were all at some awkward time; 12pm pdt is the worst time to have any conference. It’s middle of the night in Japan and workday in US and UK. Only suitable for Chinese where consoles are banned. Regardless, the news was all right. It’s surprising to see the console battle so one sided. PS4 definitely plowed Microsoft. I am genuinely surprised to say this but Sony seems to have learned from it’s mistakes and is doing what the gamers want. As opposed to Microsoft, whose vision of the living room seems to be inconsistent with our own. That said, I will probably be getting a PS4 on release. That and Battlefield. Glad to see that some very good MMOs are coming to consoles.
@Xbox 180
Composed the post above a week ago. So much has changed. I have never seen Microsoft so humbled in its entire existence. Bill Gates is rotating in his grave. And he ain’t even dead yet. From one side they slapped themselves in the face hard by going back on their “vision of the living room”. On the other hand, it speaks volumes that they take PS4 as a serious threat and a more appealing console. Which means they still have time to turn things around. Still, I am set on the PS4 but will eventually get an Xbox. Once the price is right.
@WiiU
I am currently taking bets on if the WiiU collapses before the core Nintendo titles come out. Since my Lovefilm subscription ran out I haven’t even touched the thing. And not really planing on doing it any time soon. I am tired of Nintendo feeding me promises.
PS: I love the fact that Microsoft is ripping of Playstation plus, but considering that the first 2 games available are Halo 3 and Assasin’s Creed 2 are a joke. Here in UK Halo 3 costs a pound and practically every person who owns an Xbox has it.