Why Doesn’t iTunes Have Game Trials?

Nothing is more annoying than going into iTunes to see what video games are available for the iPod Touch and iPhone to find it cluttered with hundreds of duplicate games. Developers seem to find it most useful to release two games instead of one single game: a full version and a “lite” version.

itunesDevelopers know gamers want to try before they buy, so many will create a game they’re hoping to sell, then a limited “lite” version with partial levels or stripped of features. They’re obviously trying to work around the fact that Apple released a half-assed game shopping experience. These pro and lite versions assist in cluttering the shopping space.

iTunes App Store should allow users to trial a game by allowing them to download a neutered version of the game title or using a time-trial like many other downloadable game services. Electronic game downloads are usually non-refundable because you can never give back a product which you can make infinite copies. The solution to getting users to buy into your product is to allow them to try before they buy.

Apple’s obviously enjoying the immense game sales from the application store but they may be able to increase their sales by allowing gamers to see what they’re buying before they walk away empty handed. This would also limit the total products found in the App Store because developers won’t have to post to revisions to their game title to allow gamers to try before they buy them.

There are some obvious downsides, Apple wouldn’t be able to boast the thousands of products in their store because many would be substituted for a real game download system. Okay, that’s really the only download I can think of… any others?

Developers may opt out of a trial system, forcing gamers to buy it before they try it based on the text and screenshots or utilize a time trial or limited featured version.

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Phil Harrison’s Building a 100 Million Dollar FranchisePhil Harrison’s Building a 100 Million Dollar Franchise

Once upon a time, Activision Blizzards CEO Bobby Kotick kicked a few franchises to the curb: Riddick and Ghostbusters. No doubt, this was a result of the Activision and Blizzard merger requiring some resources to the merged together while others were cut from the lineup. Phil Harrison, the new big suit at Atari/Infogrames has raised these little birds from the ashes with a dream to build them into 100-million dollar franchises.

While Bobby Kotick said the titles, “don’t have the potential to be exploited every year on every platform with clear sequel potential and have the potential to become $100 million dollar franchises,” Phil Harrision sees it as a personal challenge to prove him wrong.

“What Bobby, perhaps unhelpfully said, was that those games were franchises which wouldn’t make $100m of revenue and generate sequels. If that’s his benchmark, then fine — and we’d love to aspire to the same benchmarks. But you know what? I would love to turn Ghostbusters into a $100m franchise, just to prove him wrong.” (1up)

In many ways, this is the difference in attitudes from a large firm compared to a smaller firm with strong goals and a vision for success. Activision Blizzard is big now, perhaps the biggest publisher in the industry, they can’t be bothered with minuscule 80-million dollar franchises. Others, like Atari, strive to take a title from nothing to something of greatness. Granted, Atari’s failed in a lot of franchises, but with their new ex-Sony executive behind the helm things could turn around and this might be the first step.

Most of the best game franchises in existance today started from nothing but a dream. Big publishers don’t have time to dream, they’re too busy making money off the fanboys of their current franchises.

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.