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Hey, GOGgers,

We're not perfect, we're exploring new frontiers, and we make mistakes. We thought DRM-Free was so important that you'd prefer we bring you more DRM-Free games and Fair Price was less critical and that it could be sacrificed in some cases. The last two week's worth of comments in our forums (nearly 10k!), show that's not the case. We didn’t listen and we let you down. We shouldn't sacrifice one of our core values in an attempt to advance another. We feel bad about that, and we're sorry. Us being sorry is not of much use to you, so let’s talk about how we will fix it.

One: DRM-free forever. Abandoning fixed regional pricing means it will probably take longer to get some games, but you've made it clear that sacrificing fair pricing for more DRM-free games isn't acceptable.

Two: We will adamantly continue to fight for games with flat worldwide pricing. If that fails and we are required to have regional prices, we will make up the difference for you out of our own pockets. For now it will be with $5.99 and $9.99 game codes. In a couple of months, once we have such functionality implemented, we will give you store credit instead, which then you will be able to use towards any purchase and cover the price of it in full or partially. Effectively gamers from all around the world will be able to benefit from the US prices.

This will apply to every single game where we do not have flat pricing, such as Age of Wonders 3 (full details here), Divinity: Original Sin, and The Witcher 3. If you remember the Fair Price Package for The Witcher 2, this will be exactly the same.

Three: We still intend to introduce the pricing in local currencies. Let us explain why we want to do it and how we want to make it fair for everyone. From the very beginning our intention was to make things easier for users whose credit cards/payment systems are not natively in USD. The advantages are simple because the price is more understandable and easier to relate to. There would be no exchange rates involved, no transaction fees, and no other hidden charges. However after reading your comments, we realized we have taken an important element away: the choice. In order to fix this, we'll offer the option of paying in the local currency or the equivalent in USD. This way, how you pay is always your choice.

Four: You are what matters, and we will be sure to involve you all more in what we're doing and why we're doing it. Let's start by meeting you at GDC - we’d like to invite you to meet us face-to-face Monday the 17th at GDC. Obviously, not all of you can come to San Francisco, so we want to invite all of you to an online event with us early in April to ask us whatever you would like. More details soon.

The bottom line is simple: there may be companies that won't work with us (although we will work hard to convince the most stubborn ones ;). Yes, it means we might miss out on some games, but at the same time GOG.com will remain true to its values and will keep on offering you the best of DRM-free gaming with Fair Prices.

Once again thank you for caring so much about GOG.com. We will work hard not to disappoint you again.

--Marcin "iWi" Iwinski & Guillaume "TheFrenchMonk" Rambourg
Nice call...
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Trilarion: The retailers won't like it probably but they are a dying out species anyway and digital prices being as high as retail prices is fraud anyway. So maybe they cannot do much there.

We should enjoy the low prices as long as they last.
Just for clarity:
When I say retailer I'm referring to both digital and storefront.
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TheEnigmaticT: ..snip
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Trilarion: Maybe I'm nitpicking but shouldn't one subtract the industry standard revenue share of 30% also from the game that is another $10 USD? Then at least the loss of $2 would be converted in a small win of $1.

And does GOG really pay the VAT from their own pocket? I mean that then in some countries the industry standard revenue share of 30% would be largely eaten by VAT. Would GOG really work almost for free there?

I don't really believe that GOG would accept making a loss for a sale just to keep a customer. A smaller profit can be reasonable but a price war that results in partial losses? How long could GOG endure this.

I found that retail and digital having the same prices sounds like a scam of the digital customers. At least in my region now there is a monetary incentive to buy digital (apart from convenience).

With all the lower costs of digital I hope the customers will get lower release prices too in the future.

With paying $55 for AoW3 in same regions there must be quite some profit included. With GOG doing the compensation alone it seems like the publisher wins the jackpot currently.
This is a point I had made yesterday, and am glad that other people are picking up on it. GOG will now receive very little benefit (aside from possibly attracting a few new customers) for regional pricing now, and the publisher will get more sales and the same level of profit per sale with *no* cost to themselves. These new regionally priced games should simply not be purchased at all; GOG no longer hugely financially benefit from their sale, and their purchase just supports the very publishers that we should be punishing for using shady practices like regional pricing.
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JudasIscariot: Ask yourself this after reading through the latest letter:

Are we giving away transferable funds? :)
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donsanderson: I have read the letter through several times and I understand that it is codes or store credit,
doing so however is going to cause customers to expect the same from other retailers.
The retailers are NOT going to like that at all I wouldn't think.
Won't they apply pressure to see that the 'upstart' GOG is prevented from doing so in the future?
We'll see what happens :)

(I had a much longer explanation but I think this one will suffice :) )
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TheEnigmaticT: [i]snip
[/i]
[...]or just to help show the Triumph guys that they're you appreciate them being mensches for adapting to the changes we're putting in place, there's good reasons to pick up AoW3 if you're inclined. :)
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HypersomniacLive:

[snip

GOG.com would like to thank Triumph Studios, the fantastic development team behind Age of Wonders 3, for working with us to make this offer possible.
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HypersomniacLive: This coming up again and again got me curious and a bit confused.

In the OP, you state that will make up the difference for you out of our own pockets.
If it's solely GOG's pockets, how and to what extend is Triumph Studios (or any other publisher/ developer in similar cases) involved? Does GOG need permission or approval to offer the extra game codes?
Legally, we probably don't need approval from partners. Of course, I am not a lawyer, blah blah no legal advice from me. But if you get a record for doing things that your partners don't want to do just because they can't stop you, you will find that you don't have many partners once your contracts expire. So it's always good to make sure that you don't spring any surprises on people. :)
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donsanderson: ... When I say retailer I'm referring to both digital and storefront.
Okay then for example Steam could not like it. Anyway at some point Steam would notice that there is competition. So why don't they put pressure already all the time. Maybe Steam will even undercut GOG in this regard.

In principle this is what economy is about. Competition and the best service and best price for the customer. If everyone plays fair then a price lowering like this here is in the best interest of the customers.
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HypersomniacLive: This coming up again and again got me curious and a bit confused.

In the OP, you state that will make up the difference for you out of our own pockets.
If it's solely GOG's pockets, how and to what extend is Triumph Studios (or any other publisher/ developer in similar cases) involved? Does GOG need permission or approval to offer the extra game codes?
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TheEnigmaticT: Legally, we probably don't need approval from partners. Of course, I am not a lawyer, blah blah no legal advice from me. But if you get a record for doing things that your partners don't want to do just because they can't stop you, you will find that you don't have many partners once your contracts expire. So it's always good to make sure that you don't spring any surprises on people. :)
That's exactly why I asked the question in the post above this one.
Pissing off suppliers is as bad as doing so to customers. :)
Post edited March 12, 2014 by donsanderson
So, do I understand it right that The Witcher 3 will have regional pricing as well? Why? :/
Is it because the deal with Namco-Bandai? Because I thought you guys would want to do flat prices for The Witcher 3 as well.
Thanks for listening, GOG! :)
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Eliv: So, do I understand it right that The Witcher 3 will have regional pricing as well? Why? :/
Is it because the deal with Namco-Bandai? Because I thought you guys would want to do flat prices for The Witcher 3 as well.
Me neither since TW3 is produced by a sister company sharing the same values...

However, I was surprized by this announcement - I do not know of any company in gaming business doing this - and I would like to send GOG team a big hug and a big "thank you" for caring more about their customers than their pockets.

Kudos!
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Professor_Cake: ... This is a point I had made yesterday, and am glad that other people are picking up on it. GOG will now receive very little benefit (aside from possibly attracting a few new customers) for regional pricing now, and the publisher will get more sales and the same level of profit per sale with *no* cost to themselves. These new regionally priced games should simply not be purchased at all; GOG no longer hugely financially benefit from their sale, and their purchase just supports the very publishers that we should be punishing for using shady practices like regional pricing.
But then what would be a better solution?

I agree fully with you that basically now GOG pays the publisher so customers of GOG stay happy. This is not how it should be! We should actively try to achieve that the publishers do not ask for too much in some regions. For example by not buying but we would pass a great offer. Now with GOG compensating the customers the publishers will not even notice when they set the price too high. We must tell the publishers.

I personally will support GOG by going classics and waiting for AoW3 to become more flatly priced.

Another way might be that GOG gets a lot of sales and then starts blackmailing / ahem negotiating with the publishers to lower prices of releases in the areas where prices are too high.

In the end a bit of compensation for a bit of price excesses are okay because then everybody profits: the publisher, GOG and the customer. That should be the goal.
Post edited March 12, 2014 by Trilarion
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JudasIscariot: Lotto numbers, please give :)
4-8-15-16-23-42

By the way, to support GOG in this decision, I've been buying some titles off my wishlist at non-sale prices. Even though my backlog is out of control, I wanted to vote with my wallet in support and show you that it's not all about money from our end either. At least not where I'm concerned.
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vicklemos: Deep inside I knew something like this would happen :)
Don't hurt me people but either way was fine for me since I love GOG for years now.

And yay for store credit!
I know it's just the beggining, but will this feature be available for our already purchased games or just new ones?
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TheEnigmaticT: It's only for games where you've paid a different amount than the index price (by which I mean US price). As such, it would pretty much have to be for new ones.
Ahhh, so for Russian customers you track them down and break their legs for having paid less than the index price?

;)
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JudasIscariot: Lotto numbers, please give :)
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IAmSinistar: 4-8-15-16-23-41

Fixed that for you. :)

By the way, to support GOG in this decision, I've been buying some titles off my wishlist at non-sale prices. Even though my backlog is out of control, I wanted to vote with my wallet in support and show you that it's not all about money from our end either. At least not where I'm concerned.
I am doing the same as I can afford to.
GOG is taking a pretty good risk here, they should be rewarded with some of our money.
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donsanderson: 4-8-15-16-23-41

Fixed that for you. :)
Trying to spare him from the consequences, eh? A shame, as I think Judas would make an excellent Hurley. :)