Posted February 25, 2014
Over the years I've bought a few games and DVDs from regions I'm not supposed to buy from. For me it looked like a good deal to get a brand new game for pretty much 50% off compared to what publishers expect to make from guys like me. When I bought those things I knew fully well that regional pricing is a way to stimulate sales with populations that do not have the same expected income as a European or North American worker, and that regional pricing was not a loop hole I was supposed to use to get a comparatively ridiculously good deal on a brand new game. Screw the publishers, right? I was strapped for cash the months those games were released, honest! What difference does one sale make, hundreds of thousands of people are paying twice the amount I'm paying right now.
Then I started thinking about other industries I've seen struggling in the past few years. Miniature wargaming was a tough business for many stores, and home electronics is a cutthroat business that has seen several big franchises go bankrupt in Scandinavia operating at a loss in order to make sales at all admist fierce competition. Both those markets are very dependent on brick and mortar stores, not just for sales but to stimulate the hobbies and buyers curiousity. I'm sure most of you have gone to a home electronics store and felt up that brand new phone, checked out those HDTVs or whatever, then walked out of the store and ordered those products from some discount online warehouse, perhaps even from abroad. Same thing goes for you miniature wargamers out there, maybe you have a Friendly Local Game Store in your town which you go to once a week to play games and chat with friends, flip through the store books and checking out the sprues and blisters of nice looking miniatures, then you go home and order it cheap from abroad.
And then you bemoan that all the good stores are closing. You bemoan that your favourite miniature producers are closing down and their stuff goes out of production. Well, PC gaming hasn't really been able to swing back fully for the past ten years either. Publishers often don't feel confident throwing money at game developers to make PC games for many different reasons, but essentially it has all to do with profit. It used to be that piracy was the big concern and buying or developing awful DRM was the boost of confidence they needed to finance PC game development. That is changing somewhat, largely thanks to GOG and us the customers, I'm sure. Jolly good. There is still the issue of expected return. Profit. When they throw all that money on PC game developers, they do so because they expect to make X amount of sales in this and that region and therefore make a certain amount of money. When numbers don't add up to their estimations, publishers get wary of continued investments, which is often why development studios go bankrupt or get swallowed up by publishers. Sure, we the gamers can buy cheap games today, but in the long run we are only hurting the industry. Without good and calculable profits, there may not be enough money spent on PC development to bring us great, finished and polished games. Games need to sell well in the Americas, Europe, Asia and perhaps even Africa, at the prices publishers expect people in those regions to pay. Failure means the next game might not get the same big budget or perhaps a tighter deadline.
If you want GOG to "ban" regional pricing you are only giving them one option: Stop negotiating for DRM free releases of brand new big title games. If GOG or any other business were to sell AAA 100,000+ USD titles for the same price to people worldwide regardless of what the customer is expected to pay according to the publishers' calculations, sales would be shifted away from brick and mortar stores (which make up a majority of all sales) and other digital retailers, which would only signal that PC games are not profitable investments compared to making a few hundred Harry Potter games for consoles.
Unregulated business will NOT help the future of PC gaming or DRM free gaming, as good as it might feel for a while as retailers destroy each other in a price war to gain the favour of cheapskate gamers who can easily find the best at-a-loss deals while there still is an industry to speak of. We can not expect all great games to be crowdsourced either, thats a pipe dream.
Then I started thinking about other industries I've seen struggling in the past few years. Miniature wargaming was a tough business for many stores, and home electronics is a cutthroat business that has seen several big franchises go bankrupt in Scandinavia operating at a loss in order to make sales at all admist fierce competition. Both those markets are very dependent on brick and mortar stores, not just for sales but to stimulate the hobbies and buyers curiousity. I'm sure most of you have gone to a home electronics store and felt up that brand new phone, checked out those HDTVs or whatever, then walked out of the store and ordered those products from some discount online warehouse, perhaps even from abroad. Same thing goes for you miniature wargamers out there, maybe you have a Friendly Local Game Store in your town which you go to once a week to play games and chat with friends, flip through the store books and checking out the sprues and blisters of nice looking miniatures, then you go home and order it cheap from abroad.
And then you bemoan that all the good stores are closing. You bemoan that your favourite miniature producers are closing down and their stuff goes out of production. Well, PC gaming hasn't really been able to swing back fully for the past ten years either. Publishers often don't feel confident throwing money at game developers to make PC games for many different reasons, but essentially it has all to do with profit. It used to be that piracy was the big concern and buying or developing awful DRM was the boost of confidence they needed to finance PC game development. That is changing somewhat, largely thanks to GOG and us the customers, I'm sure. Jolly good. There is still the issue of expected return. Profit. When they throw all that money on PC game developers, they do so because they expect to make X amount of sales in this and that region and therefore make a certain amount of money. When numbers don't add up to their estimations, publishers get wary of continued investments, which is often why development studios go bankrupt or get swallowed up by publishers. Sure, we the gamers can buy cheap games today, but in the long run we are only hurting the industry. Without good and calculable profits, there may not be enough money spent on PC development to bring us great, finished and polished games. Games need to sell well in the Americas, Europe, Asia and perhaps even Africa, at the prices publishers expect people in those regions to pay. Failure means the next game might not get the same big budget or perhaps a tighter deadline.
If you want GOG to "ban" regional pricing you are only giving them one option: Stop negotiating for DRM free releases of brand new big title games. If GOG or any other business were to sell AAA 100,000+ USD titles for the same price to people worldwide regardless of what the customer is expected to pay according to the publishers' calculations, sales would be shifted away from brick and mortar stores (which make up a majority of all sales) and other digital retailers, which would only signal that PC games are not profitable investments compared to making a few hundred Harry Potter games for consoles.
Unregulated business will NOT help the future of PC gaming or DRM free gaming, as good as it might feel for a while as retailers destroy each other in a price war to gain the favour of cheapskate gamers who can easily find the best at-a-loss deals while there still is an industry to speak of. We can not expect all great games to be crowdsourced either, thats a pipe dream.
Post edited February 25, 2014 by Sufyan