This week the guys discuss Electronic Arts soccer, Far Cry 7, Vampire Survivors, Sony vs. Gaming Heads, Starfield, Tony Hawk’s Pro Skater 1 + 2, The Talos Principle 2, and Unity getting games canceled.
Let us know what you think.
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.
This 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.
By now everyone is used to paying more for Rock Band than meets the eye. The game disc is usually packed in several bundles for guitars, drums and, of course, stand alone. With The Beatles: Rock Band, MTV Games plans to release one product SKU, a game only disc. That game only disc, on the Wii is going to cost the same as other consoles: $59.99.
You remember when Wii games were $49.99 and everyone made titles that hit this price point or lower? MTV isn’t going to stick to this standard, regardless of “last gen graphics” because you’ll buy it anyway, right? Rock Band is one of those games that has hit huge strides in the market over the last few years as people buy big plastic instruments to rock their house.
Now we’re going to see if those same people willing to pay $10.00 more than normal in order to play The Beatles songs. The Wii has a large audience of gamers but they’re the style of gamer that wants a good value for their product, after all, the Wii is cheaper than every other console and the games probably should match its differences compared to games for the other consoles.
This is an interesting decision, as the market plunges into despair MTV gouges games for $10.00 more because “The Beatles” happens to be in the title. Are you going to pay more for the Beatles? Not us.
(Thanks, 1up)
So, a day before the Xbox Series X preorder launch (which after the podcast was a complete shitshow), Microsoft drops the mic by announcing they just essentially purchased The Elder Scrolls, Fallout, Prey, DOOM, and other major properties. Not much else to talk about, really.
The game news includes:
Let us know what you think.
