The life and times of DLC and pricing.

Anthem85

CAGiversary!
I have been thinking about this all day on how to approach it. There isn't really a good way so ill just get right into it.

In the last 3 years we have been living with out Xbox 360's and PS3's buying up games left and right and then adding playtime to them with DLC. Now this is an amazing thing devs have done for gaming to extend the life of a game. At what point do we as consumers feel we are getting ripped off? With the introduction of avatar Market Place I think MS has gone to far. Here is my thoughts...

Look at a company like valve, They release most (if not all) of there DLC on the PC for free. MS has in turn said we can allow that to happen on XBL. Why? they say it devalues content on the service. I think not. and I know you feel the same. Now im not saying all content should be free so don't explode on me here. Im just saying a Dev should have control on what it wants to release and price it how they would like to price it without MS trying to get every penny it can out of the consumer. I understand that there in the business to make money but there is a line. I feel they have crossed this line so many times.

Why doesn't MS have better sales on this stuff? The business model they have in place is of old. Its the same concept they use on there OS platform. Charge as much as you can because people will pay it. If you look at Steam there numbers are off the charts with there sales. here are the numbers

10% sale = 35% increase in sales (real dollars, not units shipped)
25% sale = 245% increase in sales
50% sale = 320% increase in sales
75% sale = 1470% increase in sales

L4D on steam went up 3000% one weekend by offering it for 50% off. in that weekend they released a statement that said that they sold more games and made more money 1 year after release than they did in the first year of release.... This is amazing. This even crosses over to the iphone. Devs are selling content at record low prices between $1-$5 and are making millions doing so (not all of course) Apple is even getting into this new pricing structure by offering there latest OS for $30. This kind of structure is saying hey we will sell a hell of alot more product and make more money because were supporting a wider range of people. Its working! more people are buying cheaper in this save more economy.

More people would flock to the 360 and purchase more if things like these happened.

Now my last thought before this post gets to long is the new avatar costs. they are looking for $4 for a outfit on premium things. This is out of control. People will and do buy them. I am a victim of this as I purchased the Clone trooper suit. Also look at the new Instand download games. They just released saints row 2 for $30 on this service. the game costs $20 at retail. THATS RETAIL with packaging and a store taking a cut. With digital there is no middle man, no packaging this should cost $15-$20 at the most. When does this stop being ok to do? when will MS start seeing that the consumer is not willing to do this much longer. Our views are changing when it comes to digital goods.

In closing everyone will say well don't buy it or you speak with your wallet. This is a clouded response as there are no other options. And we will be stuck to purchase these things because it extends our experience and fulfills us on the things we want.

The thing id like to see is MS start experimenting with its pricing structure to open it up. We already pay $50 a year and we just started getting ad's in our NXE. They need to step back and take a look at what they can do better for the consumer, not for themselves. Because if they would think of us and price things at a decent range they would make more money than they are now because more people will be willing to spend. Thank you to anyone that has read this. I tried to not bash as much as I could but express a view that I had. I do love my xbox and will continue to support it but I wish things would change.
 
I agree with a lot of your post. I think all of the console manufacturers are missing the opportunity to hook people into digital distribution. They nickel and dime people on stuff that barely passes as content (avatar clothes, themes and pictures, etc.), and then the actual content is priced at retail levels with very little or very rare discounts or price drops. They might be making a quick buck off the junk, but I think they are missing the larger picture, and creating a lasting negative stigma toward the value of digital items.

People already have a reluctance to let go of the physical copy, and they aren't incentivizing people to switch. Peoples minds will change only when the price is compelling. If they were to be more aggressive with pricing, similar to the iphone, suddenly that physical copy becomes much less important. Where are the day 1 xbla game sales, the price drops, the bargains? Xbox live must have a mountain of dlc and old xbla games (with little overhead) where sales have slowed to almost nonexistent. They could be using those to really push the platform, build customer loyalty and really tie people to the service, all while making money on games that are past their prime.

I know one of the big hurdles is retail partners, that's why they should start with the dlc and arcade games.

PS - Please don't buy usless stuff like a 400 pt. lite saber for your avatar, you're telling Microsoft that it's okay to overprice this stuff, gamers are suckers and they'll buy it regardless.
 
[quote name='Anthem85']Now my last thought before this post gets to long is the new avatar costs. they are looking for $4 for a outfit on premium things. This is out of control. People will and do buy them. I am a victim of this as I purchased the Clone trooper suit. Also look at the new Instand download games. They just released saints row 2 for $30 on this service. the game costs $20 at retail. THATS RETAIL with packaging and a store taking a cut. With digital there is no middle man, no packaging this should cost $15-$20 at the most. When does this stop being ok to do? when will MS start seeing that the consumer is not willing to do this much longer. Our views are changing when it comes to digital goods.[/QUOTE]

PSN has the same problem. Most of SONY's UMD Legacy games are overpriced and a ripoff. Even Steam has the new releases listed as retail price. The bold part is what really pisses me off about DD. This stuff should be much cheaper than it's retail counterpart, but instead it's the exact same price. I'd love to go DD only to save a lot of space and it's much more convenient, but when I usually sell/trade most of my games I'm not paying full price for something I can never sell.
 
[quote name='msdmoney']I agree with a lot of your post. I think all of the console manufacturers are missing the opportunity to hook people into digital distribution. They nickel and dime people on stuff that barely passes as content (avatar clothes, themes and pictures, etc.), and then the actual content is priced at retail levels with very little or very rare discounts or price drops. They might be making a quick buck off the junk, but I think they are missing the larger picture, and creating a lasting negative stigma toward the value of digital items.

People already have a reluctance to let go of the physical copy, and they aren't incentivizing people to switch. Peoples minds will change only when the price is compelling. If they were to be more aggressive with pricing, similar to the iphone, suddenly that physical copy becomes much less important. Where are the day 1 xbla game sales, the price drops, the bargains? Xbox live must have a mountain of dlc and old xbla games (with little overhead) where sales have slowed to almost nonexistent. They could be using those to really push the platform, build customer loyalty and really tie people to the service, all while making money on games that are past their prime.

I know one of the big hurdles is retail partners, that's why they should start with the dlc and arcade games.

PS - Please don't buy usless stuff like a 400 pt. lite saber for your avatar, you're telling Microsoft that it's okay to overprice this stuff, gamers are suckers and they'll buy it regardless.[/QUOTE]

Very very true statements, They have this section called the Arcade best sellers. Its been the same for the last year now. Why dont they regularly rotate games in and out of there. Drop a $10 arcade title in there or 3-5 bucks and watch it fly. Same with the DLC, they do have sales every once and awhile with there weekly deal but its not even they nice of a discount. They take $1-$3 off and say heres your deal! lol its a joke.

This brings up a question of how do they look at retail witch will run a huge sale on physical media that costs to package, turn and sell a $50 item at $20 and not see the same potential. It pulls people in. Makes more money for the company and makes you have a better connection with the consumer.

[quote name='Ryukahn']PSN has the same problem. Most of SONY's UMD Legacy games are overpriced and a ripoff. Even Steam has the new releases listed as retail price. The bold part is what really pisses me off about DD. This stuff should be much cheaper than it's retail counterpart, but instead it's the exact same price. I'd love to go DD only to save a lot of space and it's much more convenient, but when I usually sell/trade most of my games I'm not paying full price for something I can never sell.[/QUOTE]

Yes See this is whats funny. Everyone says they love to have a physical product in there hands. When MP3's came out it was said to the same extent. Now everyone only wants to have mp3's. Games will move in the DD way in a few years. I think the only huge hurdle to get over is how can you trade in your old DD games. The devs of course dont want this to happen so they will be happy with no trades but I know the consumer loves the trade system and its been in gaming since the beginning. Shit at $60 a game and at least 30 great games a year I cant afford it. I mostly wait a year to buy the games I want because they make it to the $20 mark.
 
[quote name='Anthem85']At what point do we as consumers feel we are getting ripped off? [/quote]

When we feel the price of the DLC isn't worth the joy we get out of it.


[quote name='Anthem85']Look at a company like valve, They release most (if not all) of there DLC on the PC for free. MS has in turn said we can allow that to happen on XBL. Why? they say it devalues content on the service. I think not. and I know you feel the same. Now im not saying all content should be free so don't explode on me here. Im just saying a Dev should have control on what it wants to release and price it how they would like to price it without MS trying to get every penny it can out of the consumer. I understand that there in the business to make money but there is a line. I feel they have crossed this line so many times. [/quote]

You do know that the dev gets money for all that DLC, right? You act as though MS charges for it and just takes all the profits.

[quote name='Anthem85']Its the same concept they use on there OS platform. Charge as much as you can because people will pay it. [/quote]

i guess you havent seen the deals MS is giving on Windows 7?




[quote name='Anthem85']Now my last thought before this post gets to long is the new avatar costs. they are looking for $4 for a outfit on premium things. This is out of control. People will and do buy them. I am a victim of this as I purchased the Clone trooper suit.[/quote]

you just lost all credibility....you aren't a victim for freely purchasing something - you are an idiot for buying something, having buyer's remorse and then crying about it on CAG

[quote name='Anthem85']Also look at the new Instand download games. They just released saints row 2 for $30 on this service. the game costs $20 at retail. THATS RETAIL with packaging and a store taking a cut. With digital there is no middle man, no packaging this should cost $15-$20 at the most. When does this stop being ok to do? when will MS start seeing that the consumer is not willing to do this much longer. [/quote]

[quote name='Anthem85']In closing ... speak with your wallet. [/quote]

well said :roll:
 
[quote name='Malik112099']When we feel the price of the DLC isn't worth the joy we get out of it.




You do know that the dev gets money for all that DLC, right? You act as though MS charges for it and just takes all the profits.

"No I never said this. You are assuming this is my thought process. In the other body of text you will see that I said this is a business and everyone wants to make money. Thats why I also posted that not everything should be free" The whole post states that this is about making money and how they CAN make more by charging less"

i guess you havent seen the deals MS is giving on Windows 7?


"oh yes this was a nice thing for them to do. They put together a marketing plan to sell a limited number of upgrades" for people that dont follow blogs or tech info this they will never see. They will never know that there retail copy was on special 6 months before launch at $100 off" but hey looks like there marketing strategy worked on you then right? because you defended a very limited sale that made them seems great!



you just lost all credibility....you aren't a victim for freely purchasing something - you are an idiot for buying something, having buyer's remorse and then crying about it on CAG

"im not looking for credibility, I also said in the last part of my post that I love and will continue to support the xbox and its content. I would just like to see different prices and for them to experiment. I have no remorse of what I purchased. I did it because I wanted it . This is also explained in the post. also I believe this is what this site is created... it is called cheap ass gamer correct? this would be a view from a cheap.... ass.... gamer...."



well said :roll:[/QUOTE]

My responses are in bold.
 
LOL - um, the answer to why MS will never stop overcharging for DLC is... wait for it...

[quote name='Anthem85']I am a victim of this as I purchased the Clone trooper suit. [/QUOTE]
 
[quote name='javeryh']LOL - um, the answer to why MS will never stop overcharging for DLC is... wait for it...

[/QUOTE]

There will always be people that shoot off at the mouth without trying to understand and use logic before posting something... if you read the entire article then you would see why your post is void. I continue to say that I will support the Xbox and that I would like to see them try different structures. also that we will never stop buying things at there prices because we want them and theres no other options. So we will always buy if the need or want is strong enough. Also I went on to say about how talk with your wallet is a clouded response. Thank you for your post though. Glad something jumped out at you.
 
[quote name='Malik112099']If you buy the DLC you don't have room to bitch about it.[/QUOTE]

Please read the post before assuming someone is bitching about buying DLC. This whole post is asking and trying to think differently on a business strategy. I cant control what you want to pick out and comment on but this post was never intended to be bitching about something I purchased. As I have said to the last 2 people I support the system and its content.
 
[quote name='Anthem85']Please read the post before assuming someone is bitching about buying DLC. This whole post is asking and trying to think differently on a business strategy. I cant control what you want to pick out and comment on but this post was never intended to be bitching about something I purchased. As I have said to the last 2 people I support the system and its content.[/QUOTE]


You don't give a shit about the business model. You just want cheaper clothes for your fucking avatar. Don't try to hide behind a cause.
 
[quote name='Malik112099']You don't give a shit about the business model. You just want cheaper clothes for your fucking avatar. Don't try to hide behind a cause.[/QUOTE]

lol you caught me :bouncy:
 
I think you might be the one who doesn't understand... talking with your wallet is not a clouded response at all. If you don't like the price on something don't buy it and then maybe (not likely) you will see a change in pricing. Also, I can't help but laugh when I read this:

[quote name='Anthem85']we will never stop buying things at there prices because we want them and theres no other options. So we will always buy if the need or want is strong enough. [/QUOTE]

This is just so weak. You are exactly the type of person MS loves and exactly the reason why they aren't going to change their DLC policies. In fact, if I was in charge over there and I read stuff like this on messageboards and blogs I'd start raising prices - clearly they haven't hit the limit on the worthless nonsense they can sell to suckers on the Marketplace. They are in it to make money - not to make anyone other than their shareholders happy.
 
[quote name='javeryh']I think you might be the one who doesn't understand... talking with your wallet is not a clouded response at all. If you don't like the price on something don't buy it and then maybe (not likely) you will see a change in pricing. Also, I can't help but laugh when I read this:



This is just so weak. You are exactly the type of person MS loves and exactly the reason why they aren't going to change their DLC policies. In fact, if I was in charge over there and I read stuff like this on messageboards and blogs I'd start raising prices - clearly they haven't hit the limit on the worthless nonsense they can sell to suckers on the Marketplace. They are in it to make money - not to make anyone other than their shareholders happy.[/QUOTE]

Sir there is not enough people in the world that will stop buying stuff to make a change. This is why its clouded. It so simple to say things like hey well dont buy it! people will see! they will know! guess what everyone complained about the first DLC being horse armor and the internet blew up over it and EVERYONE still purchased it. why? because it was there and people wanted it. Not because it was expensive. They sat on there couch and said well.... It looks sweet and I cant get it anywhere else so screw it. DL.

Also if you look at the post and if you researched it you would see that profits would go ten fold over last year if they lowered there prices because and your opening to a wider install base. More people are likely to buy at a cheaper price , which selling more at a cheaper price to more people = more $$ for the shareholders and would make there Stock go up. Simple math...
 
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[quote name='javeryh']LOL - um, the answer to why MS will never stop overcharging for DLC is... wait for it...

[/QUOTE]

Regardless of the OP's inability to reconcile his desires and pricepoints, he does bring up an interesting point. If there were sales/more sensible pricing would it entice enough new "victims" and end up making more money for the company?

It seems to be working for Valve, and major retailers like Wal Mart and Amazon.

I know I don't buy any DLC if I don't like the price point and I can't get a deal. That's cash they don't get. I imagine there are plenty of people like me that would be willing to spend but don't because of the poor pricing.
 
Yeah, Microsoft is for immediate money, not pleasing the customers and building money over time. Since they'll get the sale one way or another.
 
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