Posted February 14, 2011
Just a quickie, something I remembered regarding the price discussion we also had. I wrote a lot more about my opinions on high development costs and the failing business model for AAA titles (apparently only the top 10% of PS3 and X360 games even return a profit), and how the high prices it leads to are one of the major other reasons on why the games don't sell anymore. Console titles are very expensive; the $40 PC game example brought up, I live in a high income country and that's still 2-3x the price a movie theatre ticket or a meal. It might not sound like much of a difference considering how long you play a game, but it is enough to make it that much harder for people to make a purchase decision. There are no considerable numbers of spontaneous purchases at these prices. People want to be really sure that they get the best game they can for so much money, hence the sales focus on the top 10% most hyped games.
The reason why I came back to this now is because I read that regardless of platforms or types of games, $5 is said to be the price people feel most comfortable paying for a game. For indie developers, it is the price that apparently yields the best revenue, and even on Steam the majority of sales are when the per-game price is around $5. The important detail: in online distribution, the amount that developers make from that $5 sale is about equal to what they make from a $50 or $100 retail sale.
(Source)
The big publishers have reached a dead end.
The reason why I came back to this now is because I read that regardless of platforms or types of games, $5 is said to be the price people feel most comfortable paying for a game. For indie developers, it is the price that apparently yields the best revenue, and even on Steam the majority of sales are when the per-game price is around $5. The important detail: in online distribution, the amount that developers make from that $5 sale is about equal to what they make from a $50 or $100 retail sale.
(Source)
The big publishers have reached a dead end.
Post edited February 14, 2011 by Anamon