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I believe Videogames Should be Priced Like DVDs in the following way...

- First week of a game release the price should be $39.99, after it should be regular price $59.99. (Basicly $20 off regular price)

Why?
A lower price on the first week would reward the the first week buyers and lure other buyers to get the game before it goes back to regular price.

How is this priced like DVDs?
When DVDs come out the first week they are usually priced at a discount to lure more customers to buy and reward the first week buyers. The price of a DVD is usually a $5 discount and that sometimes determine whether or not i buy a DVD.

What made you think about this topic?
Listening to this weeks CAGcast, i got thinking about Customer Retention and how the videogame industry does not do much to retain there cusomters or reward guys like me who are usually the people who buy games in the first week that it is available.

What do you think?
I think the videogame industry would sell more games and release dates would be more important.

I can't imagine any consumers being happy with the current pricing structure... and it is pretty ass-backwards since early adopters are essentially punished right now. I know for a fact that if this sort of business model caught on, I would end up buying all of my stuff on day 1.

Absolutely.

I'd imagine the reason it's not right now is the fact the DVDs are purchase by something like 80% of the population, not so much video games. In fact, DVDs are sort of the opposite of everything else in the market. Computers, Cameras, etc all are not on sale for their releases.

Also, movies have had a run in theaters where they have hopefully already made the production money back and DVD's can be, more or less, pure profit. 2 completely different business structures.

Originally Posted by neocisco Also, movies have had a run in theaters where they have hopefully already made the production money back and DVD's can be, more or less, pure profit. 2 completely different business structures.

Good point, i agree. However, since the price of admission for a game is so high to begin with i think it would be in the intrest of the game studio to lower the price out of the gate to spark intrest. I believe this would make the studio money and keep more money in the pocket of the first week buyers.

I doubt the movie studios decide what the prices will be for a dvd sale at a retail store. These stores use these sales to get customers inside to purchase other items too. They'll take a few dollar loss on a dvd to get you to buy other stuff.

I wished videogames did this too! But it would be up to the stores. Circuit City did this with New Super Mario Bros when it came out (I think it was $25).

Originally Posted by jbuck138 I doubt the movie studios decide what the prices will be for a dvd sale at a retail store. These stores use these sales to get customers inside to purchase other items too. They'll take a few dollar loss on a dvd to get you to buy other stuff. I wished videogames did this too! But it would be up to the stores. Circuit City did this with New Super Mario Bros when it came out (I think it was $25).

Actually, the studios set the MSRP (manufacturer's suggested retail price) which is usually what stores like Borders sell them for and also the MAP (minimum advertised price) which is usually what CC, BB, Target, etc. sell them for. Sometimes the discounters will sell them for less than MAP which is why they have them listed as "low price" in their ads instead of an actual number. They're not allowed to advertise a price lower than the MAP.

Originally Posted by neocisco Actually, the studios set the MSRP (manufacturer's suggested retail price) which is usually what stores like Borders sell them for and also the MAP (minimum advertised price) which is usually what CC, BB, Target, etc. sell them for. Sometimes the discounters will sell them for less than MAP which is why they have them listed as "low price" in their ads instead of an actual number. They're not allowed to advertise a price lower than the MAP.

That makes sense, i always wondered why some items had the price of "Price to low to show". Now i understand why they say if you see our items for a lower price in any other advertisement they will meet it, well of course you wont see it anywhere lower because there not allowed to print/advertise below the MAP.

Slight problem with your parrallel: videogames haven't made the majority of their profit, including millions of dollars over production cost, before they are released on disk.

Originally Posted by PyroGamer Slight problem with your parrallel: videogames haven't made the majority of their profit, including millions of dollars over production cost, before they are released on disk.

Theoretically, at least. Basic Instinct 2, anyone?

The last time Best Buy try to sell GTA:LCS with a $10 discount on the first week, they got in trouble with Rockstar. Since than they havent had any discount on any new video game release.

The only store that does this is Fry's. Normally they would discount new release for $15-5.

If a video game was priced less in the first week I would be more likely to buy it. If it's priced the way it is now I'm more likely to wait for it to go down in price but by the time it goes down in price there is something coming out that I would rather have so I end up not getting the first game.

Sports games should also be priced lower all the time. The reason I bought 2K Sports games was because they were $20. An updated roster and a couple new features don't justify a $40-50 game.

Circuit City actually did this a bunch at the end of 06. FFXII and Zelda: TP for the Cube were both priced at $37.99 at launch, if I'm not mistaken.

Originally Posted by Chacrana I can't imagine any consumers being happy with the current pricing structure... and it is pretty ass-backwards since early adopters are essentially punished right now. I know for a fact that if this sort of business model caught on, I would end up buying all of my stuff on day 1.

Early adopters for DVD's still get punished as well... many DVD's end up being in the 2 for $20 or $9.99 sale section about 3 - 4 months after they come out, unless the movie is amazingly popular.

The 4 people who voted No are clearly not meant to be browsing "Cheap Ass Gamer"

I dont think Epic or Bungi would like this idea one bit.

I think with $60 games, at least on launch day, maybe first week (until Sunday), games should be $10-$15 cheaper than their MSRP.

Some games shouldn't be $50-$60 at all. Wario Ware should be like $30 or $40, Rayman the same. Gears should've been $50 (It's a 5 hour game people, seriously). I'm upset with Microsoft's pricing because their disc sizes haven't increased, but Sony gets $60 games with much bigger discs. That's not right.

Plus, the PS3 cures cancer.

If 360 games were $40 and Wii games were $30 during the first week of sales I would buy far more games the week they came out then I do now.

A lot of those special deals are done by specific stores not the movie industry to lure in customers, basically they sell DVDs for less than the suggested retail price to lure in customers.

If stores like BB and CC were to do this with videogames a $10 discount would result in them maybe breaking even on the sale and a $20 drop like you suggest would have them losing money. The current alternative is what you see at GS/EB where they offer up preorder bonuses like art books and special DS styluses.

From what I've read though, stores would take a loss on a game with only a $10 discount. While it be great for us consumers, I don't think stores would do it. After all, people will go out to buy a game and nothing else. It's not like a DVD where someone will pick it up while shopping for something else. Or go to a specific store that has a movie on sale because they are shopping for a big ticket item at the same time.