This week, TJ finally decides to play Middle Earth: Shadow of War, and there is a debate on whether he should play Shadow of Mordor or just watch a Let’s Play of the game first.
The news includes:
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.
Another podcast live on YouTube. You can check the original broadcast here.
Stalker 2 needs 150GB of SSD space, the makers of Black Mesa reveal their new project, which has absolutely nothing to do with Half-Life; Rogue Point is a co-op tactical shooter set in a world ruled not by aliens, but by corporations. Stellar Blade‘s Nier: Automata DLC drops later this month and Microsoft has now confirmed Spyro Reignited Trilogy hits Xbox Game Pass on the 12th November.
Let us know what you think.
The post Episode 737: Nintendo At It Again first appeared on Gaming Podcast.
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If you thought you’d be getting a release of Starcraft 2 for the holiday of 2008 you’ll be upset at the news. The heavily awaited RTS title Starcraft 2 will be arriving sometime in 2009. The original title arrived in 1998 but we’re not going to see the first sequel until sometime next year, amazing people even remember the game after eleven years, right?
Activision Blizzard hardly makes a game we’d forget. The reason we all have fond memories of Starcraft, Warcraft and Diablo is due to the craftsmanship that goes into the game titles (and a bit of the marketing). The developers take their time to hand craft and test a solid product, which is reason alone to see a release next year rather than in this one.
“Next year’s offerings from Activision Blizzard should include highly anticipated PC strategy title StarCraft II, the sequel to one of the world’s most enduringly popular games.” (starcraftwire.com)
It won’t make the 2008 holiday schedule, making us wonder if it’s a 2009 holiday schedule. Although Activision Blizzard doesn’t need to time their games for the biggest sales seasons it doesn’t hurt to push the title out when gamers are actively looking for new blockbusters.
Personally, we’d love to see a Spring/Summer release time frame to give us something to fill the void, but we’re sure Activision’s marketing team has plans revolving around money than a few gamers personal preferences. Regardless to the launch time we’re at least privvy to the knowledge that it’s coming next year.
