Question about video game MSRP

M

maizeeagle2400

CAGiversary!
So I ran across an article about how manufacturers can now tell a store the minimum price is for an object they sell. My thing is why does a manufacturer care what a store sells it for? I mean the store purchased it from the manufacturer so they should be able to sell it for whatever price the want right? Or do video game companies get a percentage of each actual sale?
 
[quote name='whitereflection']With respect, is this a serious question?

CaptainJoel, that movie rocks.[/QUOTE]
I wholeheartedly agree! :D
 
They care because if their games are sold at too low a price, they seem cheap, or cheaper, or lesser than their competitors products in some way.

If all games sell for $60, and one companies sells for only $40, then consumers tend to think the quality of those $40 games is lower.
 
Publishers can't dictate a retail price because of consumer protection laws. They can only suggest a retail price. All pricing decisions are at the sole discretion of the retailer. There are ways to incentivize retailers to sell a product at a specific price though.
 
[quote name='Puffa469']They care because if their games are sold at too low a price, they seem cheap, or cheaper, or lesser than their competitors products in some way.

If all games sell for $60, and one companies sells for only $40, then consumers tend to think the quality of those $40 games is lower.[/QUOTE]

Indeed. It also cheapens the property itself, so it becomes harder to sign lucrative licensing agreements for toys, shirts, etc. This sort of thing is why the NFL gave EA the exclusive rights to manufacture their video games. When 2K was selling their NFL games for $20, it forced EA to sell Madden for cheaper, thus cheapening the value of the NFL license.
 
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