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General discussion (archive)<b>Letter from the M.D.</b>: About Regional Pricing(5517 posts) (5517 posts) 
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This is my favourite topic
Posted February 25, 2014
Hey Goggers;

As many of you know, we announced on last Friday that we are going to introduce regional pricing for 3 new games coming up on GOG.com soon. Looking at the amount of reactions (over 3,500 comments at this very moment), it is obvious that this change is making many of you guys worried. We must have failed to clearly explain why our pricing policy for (some) newer games will change and what this means as a matter of fact for our PC & MAC classic games, which account for over 80% of our catalogue.

To be honest, our announcement was a bit vague simply because our future pricing policy is not 100% set in stone yet and we were just worried to make any promises before it was. You know, GOG.com has been growing quickly (thanks to you!), and the more we grow, the more we are worried to make some of you guys disappointed. This is why we were so (over-)cautious with our announcement.

We should have just been upfront about why we've made these changes and what they mean for us in the future and what we're planning. So let's talk. To be clear: what I'm talking about below is our plan. It's a plan that we believe we can accomplish, but while it's what we want to do with GOG, it may change some before it actually sees the light of day. Please don’t blame me for talking open-heartedly today and telling you about the plans and pricing policy we want to fight for and eventually achieve. The below plans aren't sure. The only guarantee I can give you is that we’ll do our best to fight for gamers while still making sure GOG.com as a whole grows (because well, we still want to be around 50 years from now, you know!). So, enough for the introduction, let’s get things started.

Why does GOG.com need to offer newer games at all?

We've been in business for 5 years now, and we've signed a big percentage of all of the classic content that can be legally untangled. There are still some big companies left we're trying to bring into the GOG.com fold, like LucasArts, Microsoft, Take2 and Bethesda, but what classic titles will we sign in the future once we have those partners on-board? We need to sign newer games or else just fire everyone and keep selling the same limited catalog. Either we bring you “not so old” releases from 2010+ or brand-new AAA titles, because these will become classic games tomorrow. It’s as simple as that.

Also, well, we want to expand beyond just classic games, hence the fact we have been offering you brand-new indie releases for almost 2 years now. Why expanding? Well, obviously, because the more games we sell, the more legitimacy we have on the market and the more likely it is that we can achieve our mission: making all PC & MAC video games 100% DRM-free, whether classic or brand-new titles.

To be straightforward (excuse my French):DRM is shit-- we'll never have any of it. It treats legitimate customers like rubbish and pirates don't have to bother with it. It's bad for gamers, and it's also bad for business and our partners. We want to make it easy and convenient for users to buy and play games; rather than give piracy a try. Happy gamers equals a healthy gaming industry; and this is what we fight for. Anyway, I am sure you well know our opinions about DRM.

To make the world of gaming DRM-free, we need to convince top-tier publishers & developers to give us a try with new games, just like they did with classic games. We need to make more case studies for the gaming industry, just like we successfully did back in 2011 with The Witcher 2. It was our first ever 100% DRM-free AAA day-1 release. GOG.com was the 2nd best-selling digital distribution platform worldwide for this title thanks to you guys, despite having regional prices for it. We need more breakthroughs like this to be able to show all the devs and publishers in our industry that DRM-free digital distribution is actually good for their business and their fans. And when I say breakthroughs, I am talking about really kick-ass games, with a potential metacritic score of 85% or more, AA+ and AAA kind of titles.

And this is exactly why we signed those 3 games we told you about last Friday. We believe those 3 games can be massive hits for hardcore gamers, that they can help us spread the DRM-free model among the industry for newer games and we did our best to convince their rights holders to give GOG.com a try. One of those games, as you see already, is Age of Wonders 3. We're planning more titles even beyond these first 3 soon.

Alright, but why is regional pricing needed for those (only 3 so far!) newer games then?

First of all, you have to be aware of an important fact when it comes to newer games: GOG.com cannot really decide what the prices should be. Top-tier developers and publishers usually have contractual obligations with their retail partners that oblige them to offer the game at the same price digitally and in retail. When they don’t have such contractual obligations, they are still encouraged to do so, or else their games might not get any exposure on the shelves in your favorite shops. This will change over time (as digital sales should overtake retail sales in the near future), but as of today, this is still a problem our industry is facing because retail is a big chunk of revenue and there’s nothing GOG.com can do to change that. We need to charge the recommended retail price for the boxed copies of the games in order for developers (or publishers) to either not get sued or at least get their games visible on shelves. You may recall that our sister company CD Projekt RED got sued for that in the past and we don’t want our partners to suffer from that too.

On top of that, you have to know that there are still many top-tier devs and publishers that are scared about DRM-free gaming. They're half-convinced it will make piracy worse, and flat pricing means that we're also asking them to earn less, too. Earn less, you say? Why is that? Well, when we sell a game in the EU or UK, VAT gets deducted from the price before anyone receives any profit. That means we're asking our partners to try out DRM-free gaming and at the same time also earn 19% - 25% less from us. Other stores, such as Steam, price their games regionally and have pricing that's more equitable to developers and publishers. So flat pricing + DRM-Free is something many devs and publishers simply refuse. Can you blame them? The best argument we can make to convince a publisher or developer to try DRM-Free gaming is that it earns money. Telling them to sacrifice income while they try selling a game with no copy protection is not a way to make that argument.

Getting back to those 3 new upcoming games coming up. The first one is Age of Wonders 3, which you can pre-order right now on GOG.com. The next 2 ones will be Divine Divinity: Original Sin and The Witcher 3. We’re very excited to offer those games DRM-free worldwide and we hope you’ll love them.

Still, we know some countries are really being screwed with regional pricing (Western Europe, UK, Australia) and as mentioned above, we’ll do our very best, for every release of a new game, to convince our partners to offer something special for the gamers living there.

And don’t forget guys: if regional pricing for those few big (as in, “AA+”) new games is a problem for you, you can always wait. In a few months. The game will be discounted on sale, and at 60, 70, or 80% off, the price difference will be minimal indeed. In a few years it will become a classic in its own right, and then we have the possibility to to make it flat-priced anyway (read next!) The choice is always yours. All we are after is to present it to you 100% DRM-free. We are sure you will make the best choice for yourself, and let others enjoy their own freedom to make choices as well.

So, what is going to happen with classic games then?

Classic content accounts for about 80% of our catalog, so yes, this is a super important topic. We've mentioned here above that we can’t control prices for new games, but we do have a lot of influence when it comes to classic games. GOG.com is the store that made this market visible and viable digitally, and we're the ones who established the prices we charge. We believe that we have a good record to argue for fair pricing with our partners.

So let's talk about the pricing for classics that we're shooting for. For $5.99 classics, we would like to make the games 3.49 GBP, 4.49 EUR, 199 RUB, and $6.49 AUD. For $9.99 classics, our targets are 5.99 GBP, 7.49 EUR, 349 RUB, and $10.99 AUD. This is what we’ve got in mind at the moment. We’ll do our best to make that happen, and we think it will. How? Well, we have made our partners quite happy with GOG.com's sales for years - thanks to you guys :). We have created a global, legal, successful digital distribution market of classics for them. This market didn't exist 5 years ago. By (re)making all those games compatible with modern operating systems for MAC and PC, we've made forgotten games profitable again. When it comes to classic games, we can tell them that we know more about this market than anyone. :) Being retrogaming freaks ourselves, we know that 5.99 EUR or GBP is crazy expensive for a classic game (compared to 5.99 USD). We have always argued that classic games only sell well if they have reasonable prices. Unfair regional pricing equals piracy and that’s the last thing anybody wants.

What’s next?

We will do our very best to make all of the above happen. This means three things:

First, we will work to make our industry go DRM-free in the future for both classic and new games (that’s our mission!).

Second, we will fight hard to have an attractive offer for those AA+ new games for our European, British and Australian users, despite regional pricing that we have to stick to.

Third, we will switch to fair local pricing for classic games, as I mentioned above.

TheEnigmaticT earlier mentioned that he would eat his hat if we ever brought DRM to GOG.com. I'm going to go one step further: by the end of this year, I'm making the promise that we will have converted our classic catalog over to fair regional pricing as outlined above. If not, we'll set up a record a video of some horrible public shaming for me, TheEnigmaticT, and w0rma. In fact, you know what? Feel free to make suggestions below for something appropriate (but also safe enough that we won't get the video banned on YouTube) so you feel that we're motivated to get this done quickly. I'll pick one that's scary enough from the comments below and we'll let you know which one we're sticking to.

I hope that this explanation has helped ease your worry a bit and help you keep your faith in GOG.com as a place that's different, awesome, and that always fights for what's best for gamers. If you have any questions, comments or ideas, feel free to address them to us below and TheEnigmaticT and I will answer them to the best of our abilities tomorrow. We hear you loud and clear, so please do continue sharing your feedback with us. At the end of the day GOG.com is your place; without you guys it would just be a website where a few crazy people from Europe talk about old games. :)

I end many of my emails with this, but there's rarely a time to use it more appropriately than here:

“Best DRM-free wishes,

Guillaume Rambourg,
(TheFrenchMonk)
Managing Director -- GOG.com”
Posted February 27, 2014
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Matruchus: Yeah I do but that was two weeks ago for these games so. They promised last year to release two old games a week so where is that. And again most of them mediocre games.
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HGiles: 7th Legion and Doomdark's Revenge were both last week.

GOG doesn't release a ton of games at once. Been around since 2011, you should know this.
Yeah it just seems to be getting less and less. Most of the games now releasing are newer since gog thinks that everything older than five years is classic.
Posted February 27, 2014
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DiscipleJF: It's business. They have to do this or the games catalog stays "as is". No new games, no new releases. I'll give you an option. You can buy your game off Steam, and be online in order to install and play it. Or you can buy the same game off GOG and play it on whatever machine you want, how many you want, and not have to be connected or do any online checks.

I prefer GOG, that's the way it will stay.
Not entirely true. They have a third option in expanding their selection of games via indie games instead of throwing away their core values thus alienating part of their consumer base to get games from mainstream companies. Their selection of games would keep growing, and they would stay loyal to their values and to their customers.

The "no new games" thing is pure PR bullshit. The truth is that they want to grow bigger and aim at a wider market for more money, so they willingly decided to sacrifice part of their customers as a calculated risk to gain new ones. Not that there's anything wrong with that, but you can't expect everyone to agree. Some people use the service precisely because of those policies they are changing and think that by going that way they won't be different from several other stores anymore. So they'll complain and leave the service.
What i think is particularly pissing off people is the fact they refuse to admit it and keep adding inconsistent excuses and writing PR crap while taking back things they literally PROMISED to customers. It's the kind of behaviour you generally associate to corrupted politicians, not to a store that is popular for nothing else then its fairness to customers and criticism over traditional dd sales models.
Posted February 27, 2014
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paulrainer: if its another fantasy rpg type the GOG guys are a sure bet on a fixed odd to add it to their catalogue
if its a proper classic then forget it..it wont happen
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Matruchus: Yeah where are classics like Dune 2, Dune 2000, Emperor Battle for Dune, Red Alert, Starcraft or other games.
I've no idea about the first lot of games, but Red Alert and all the other C&C titles are gripped with an iron fistful of DRM and whatnot as far as I'm aware. The games rely on Uplay or Uplay and Steam or possibly even additional DRM I believe. I've got an older collection known as "The First Decade" which includes the first 12 or so C&C games from a few years ago and it has DRM on all of the games for sure as there are like 1500 CD keys you have to type in for each game. They've since released a new complete collection of the C&C games which includes 17 titles I believe and is only available via Uplay requirement if I'm not mistaken. Not sure of the details but when I looked into it it had a massive wall of DRM and other annoying crap and I went "meh" and passed on the deal. It was $5 for all 17 C&C games in one box. $5 is a good price, a fantastic price even for those games. It is not a good price for those games encumbered by ridiculous DRM crap out the wazoo though so I wont buy it. Those games are super popular and of course super desireable to have on GOG.

Blizzard is a bit of a special case too. They're a company that has had virtually unlimited success with practically every game they've ever released. Their games appear to sell very well forever, and that gives Blizzard the luxury to grip their games with an iron fist and decide to sell them themselves solely, or to very carefully pick and choose where else they'll sell them. They appear to want to have full control over selling their games through their current service and they actually appear to be very financially successful in doing so. I believe they are probably of the opinion that their games make them endless fortunes already at whatever price they want to charge and under whatever conditions they choose, wherever they choose to sell it and that they don't need to remotely even consider trying to sell more games through other sources because the games pretty much all sell themselves effortlessly.

There's no doubt in my mind that GOG.com would have contacted these companies by now to try to arrange a deal, and if it was up for grabs I'm sure we'd have seen them here by now. It's a huge mistake to think that because a game isn't here that GOG.com hasn't had any interest in bringing it here. I'd be shocked and amazed if they haven't attempted to get every major title from every publisher that ever existed here by now, and the sole reason any title isn't here is because either:

1) publishers just aren't interested in DRM-free releases of their games over fears of piracy or some other reason

or

2) publishers are open to the idea of DRM-free for some titles, but only under conditions such as regional pricing which GOG has traditionally not allowed and GOG customers might possibly start World War III over.


I would imagine too that from the eyes of a game publisher who isn't selling a game on GOG right now, if the reason why is that they have decided for whatever reason that they require regional pricing and that isn't an option here they wont sell it here at all, but if regional pricing is an option here they might consider selling their game here and entertaining the option of DRM-free without *them* having to compromise their goals, but if it turns out that people turn against GOG.com enough that such a game wouldn't sell here very well or that there would be big enough risks in doing so for backlash of people from it, and potentially backlash against the game company completely in a way that would actually harm their sales elsewhere too, then game companies will probably just ignore GOG.com in the future and ignore DRM-free as a viable concept and do as they've always done knowing they not only can do so but they'll continue to profit from it in a way they get to decide unanimously if people want to actually play their games bad enough.

So, if people would like to see games like that show up here, I imagine that we might all have to consider compromising on some of the things that we're actually willing to compromise on and putting a different amount of weight on how much we value each of the things traditionally "the rule" here on GOG.

Either way, if a game is a total AAA game when it came out and it isn't here, that's almost certainly the decision of the owner of the game and most likely not GOG's decision.
Posted February 27, 2014
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NetAndy: Age of Empires II, Freelancer, Half-Life, Portal...
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Matruchus: Yeah there are a lot more games out there but gog thinks they are crap by what TEnigmatic said today.
Well, to be fair he also said "The ones that aren't rubbish are exceedingly difficult to sign, or else you would see them here already. Trust me, we've been trying. "
Posted February 27, 2014
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ElarionAbendglan: I think this pricing thing is just something many people grow accustomed to. I did so myself and i won't buy new Games as fast as with the old pricing tag.
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Randalator: Oh, I've already become accustomed to regional pricing. So much so, in fact, that my reaction to the bullshit 1$=1€ is always the same: "Fuck you! I'll wait for a bundle or 80+% sale before even considering buying this thing."

I won't even bother using VPN to get a cheaper regional price, I'll wait until the price drops even below the cheapest initial regional price. And then I might use a VPN on top of that. Try to screw me over and your bound to see less of my money than in any other scenario. It's called "voting with your wallet". I wish more people would do that.
I don't get your posting. They don't even aim for 1$=1€ so what was the matter here? Just vote with your wallet, lean back relaxed and watch what happens to GoG and the prices here. I just don't see a reason to get the pitchforks and fire out just yet. :-)
Posted February 27, 2014
I've read the first few pages of this topic and boy am I glad that it's not my job to read all of them. Holy cow.

Anyway, while I'm no more fond of being screwed over than anyone else, I really can't say that I'm all that emotional about this change. It's a policy change and a step away from an ideology that got GOG a number of fans, but if one looks at the actual changes then there's really not a whole lot to be upset about just yet.

The classics have been and will continue to be priced at a reasonable level. Your location in the world might cost you a few cents per title but that's hardly something that's going to ruin anyone's budget. I don't like paying more for a game just because I'm European, and making me pay more just because I'm not Russian seems wrong out of general principle. I say "seems" because in reality, once you turn off gut feelings and raw emotion and consider things logically, it's actually not fair that people in the more recent EU-countries are paying as much as I am, since their purchasing power is considerably less than mine.

Purchasing power, huh? Yeah, it's a fancy term that totally does a number on that easy "one world, one price" logic. One price is one price, but what people easily forget is that one dollar isn't the same everywhere. As a consequence, the de facto price, measured in the opportunity cost suffered to buy the game, has already been wildly different around the world. Now GOG is officially going to embrace regional price differences, but in reality those differences were already there.

What's also relevant, I think, is to look at the proposed changes. The classic games are changing a few cents and making a big deal about possibly paying a few cents more, given the state of the world, seems positively petty. The new release AAA titles are a different story, with regional prices being anything but fair for AoW3, but then it's a new release title. Buying games on release day means you're getting a raw deal and that's just how it is. So far it seems like GOG is offering us that same raw deal, even if it's made a bit sweeter by at least not including DRM, and it doesn't seem like GOG's deal is any more raw than what you'll find everywhere else. Quite the opposite, actually.

Personally, I'm a fairly new customer at GOG. I know how to get my hands on games for free but I actually like buying the games that I play. My experience with GOG has so far been exclusively positive. I've picked up classics at bargain bin prices, the damn things actually work, and I don't have to deal with any DRM nonsense either. No auto-updaters, no system tray agents spamming me with the latest offers, no "you must go online to activate this game" crap. Just the goods, fair and square. What's not to like about that? It's certainly more enjoyable than Steam's dishonest and borderline hateful approach.

I probably won't be buying these new release titles, though. Not because I'm pissed off that I'm getting ripped off, but buying on release just doesn't lead to good deals, as I've already said. And my computer isn't fond of new release titles anyway. It's an old Q6600 @2400 with a GF8600 GT for the graphics, and by the time I'm actually able to run these new games, I'm sure the prices will have gone down somewhat. If not then I know a guy who knows a guy who will probably lend me these games for free, giving me a chance to actually find out if they're worth the price. >_>

Yeah, it aint pretty, but those are the terms in today's marketplace. It's something we all have to deal with, and just like any one of us can't change anything by our own, GOG really isn't big enough to dictate market terms. Be that as it may, I really fail to se how regional prices actually change much of anything. It's still one of very few DRM-free digital stores around and the deals offered are still very good. Ideology is good but blind ideology won't get anyone anywhere good.
Posted February 27, 2014
Okay although there are already almost 2500 posts here and another several thousand posts in the other thread I like to give my two cents to the topic. But at first I have to say that I'm sorry for my poor English. (by the way I've only read the first three pages of this topic)

First: As many of the previous posts I don't think that you have to convert to regional pricing. You can just release "newer classic games" which are becoming classics over time. Maybe that way you will grow big enough that some publishers will come to you with their new games and are willing to drop DRM and regional pricing, maybe you wont. But even that way you could still sale classics and games that are becoming classics and still have your fan base/customers.

Second: Although I agree that DRM is a much bigger pain in the ***, than regional pricing I think that dropping one of your principles doesn't help your credibility.

Third: For your third point in the letter ("fair" local pricing), I would vote for a more flexible system.

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Wolfsherz: So, you take a lot of words to tell European Customers that the prices on GOG actually increase.

$9.99 is not €7,49! ==> Should be €7,26
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TheEnigmaticT: You mean to tell me that your currency exchange fees are less than 26 eurocents?
I normally buy my games here with paysafe cards and checked theire exchange calculator and for $9,99 I would pay €7,14 at the moment including currency exchange fees. And although that still isn't that much it is still money i could save. Additionally since you are still a company trying to make money I believe you wouldn't change the Europrice if the exchange rate would change in favor of the Euro as fast as you would, if the Euro would drop significantly.
Posted February 27, 2014
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Shendue: a store that is popular for nothing else then its fairness to customers and criticism over traditional dd sales models.
oh my! where could i find such a store - it sounds great
Posted February 27, 2014
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wintermute.: ...
The Hitler clip might be a bit harsh sarcasm, but it is also funny and fun it was for sure.
...
Indeed, how can anyone not crack up almost immediately with any Hitler-meme video posted on any topic regardless of their view on the topic in favour of or in opposition to the view behind the video? They're just funny as hell no matter how many times you see them. :o)
Post edited February 27, 2014 by skeletonbow
Posted February 27, 2014
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Shendue: a store that is popular for nothing else then its fairness to customers and criticism over traditional dd sales models.
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paulrainer: oh my! where could i find such a store - it sounds great
LOL XD
Posted February 27, 2014
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DiscipleJF: It's business. They have to do this or the games catalog stays "as is". No new games, no new releases. I'll give you an option. You can buy your game off Steam, and be online in order to install and play it. Or you can buy the same game off GOG and play it on whatever machine you want, how many you want, and not have to be connected or do any online checks.

I prefer GOG, that's the way it will stay.
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Shendue: Not entirely true. They have a third option in expanding their selection of games via indie games instead of throwing away their core values thus alienating part of their consumer base to get games from mainstream companies. Their selection of games would keep growing, and they would stay loyal to their values and to their customers.

What i think is particularly pissing off people is the fact they refuse to admit it and keep adding inconsistent excuses and writing PR crap while taking back things they literally PROMISED to customers. It's the kind of behaviour you generally associate to corrupted politicians, not to a store that is popular for nothing else then its fairness to customers and criticism over traditional dd sales models.
They've been doing indies. I remember when GOG first released them. The screams of 'GOG is tossing out their old-game core value!' were almost as loud as the past week. :D

There have been major problems with indies that caused a lot of embarrassment for GOG. Indies also don't tend to cover all genres. I can understand not wanting to put all the new-game eggs into the indie basket.

The 'Good News! We're dropping a feature' spin was very annoying.
Posted February 27, 2014
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skeletonbow: 2) publishers are open to the idea of DRM-free for some titles, but only under conditions such as regional pricing which GOG has traditionally not allowed and GOG customers might possibly start World War III over.
Nope, World War 5: http://www.youtube.com/watch?v=0dZIutRz9hw
Posted February 27, 2014
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hedwards: I don't think that's entirely true. Win 3.1 would be appropriate and that fit on a couple of floopy disks, so doing an emulator for that shouldn't be too hard.

But, beyond that, there's always Wine, which should support most or all of the relevant API calls for the Win 9x games. And there's always the possibility of running that on Window via that software package I can't remember for compiling Linux applications on Windows.
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HGiles: WINE is great, but 1) Not ready to be used in production releases, and 2) Doesn't work on Windows very well AFAIK. That may have changed since I last checked. If WINE could be used that would be great. There's always a cost-benefit analysis though. My attempt last year wasn't promising.

Win3.1 is one of the early versions that have a different architecture.
Well, the thing is that the main reason that Wine doesn't work very well on Windows is that up until recently there wasn't much need for it to. But, Wine itself tends to do a better job than Windows in terms of maintaining support for older titles as they don't need to make the same sorts of compromises that MS does to maintain a mostly stable OS.

And yes, 3.1 was a different architecture, but it's mostly just a GUI running on top of DOS with a few features bolted on.
Posted February 27, 2014
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NetAndy: Age of Empires II, Freelancer, Half-Life, Portal...
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Matruchus: Yeah there are a lot more games out there but gog thinks they are crap by what TEnigmatic said today.
Oh well...
Age of Empires II, Freelancer => Microsoft
Half-Life, Portal => Valve

All, DRM providers which don't want to sell their games without DRM.

Seriously?

Choose better examples, those are the worst of all.
Posted February 27, 2014
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DiscipleJF: It's business. They have to do this or the games catalog stays "as is". No new games, no new releases. I'll give you an option. You can buy your game off Steam, and be online in order to install and play it. Or you can buy the same game off GOG and play it on whatever machine you want, how many you want, and not have to be connected or do any online checks.

I prefer GOG, that's the way it will stay.
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oneworldoneprice: I see you've taken the marketing speak with hook, line, and sinker. "We have to fire everyone if we don't sell these AA+ games." That's just manipulative PR spin and total nonsense.

There are plenty of games to release, old and new. Maybe GOG should accept games like Mage's Initiation instead of giving the developers a cold shoulder?

Maybe they can work to rescue more old games outside of the ones from LucasArts and other giant companies?

Maybe they can focus on other newer titles that aren't AA+ or don't require regional pricing?

Many options, but GOG isn't interested because those won't make them as much money as they hope these AA+ games will.
So GOG should buy crap games, sell them for $9.99 USD and people will be happy? Really?

I have not fallen for any marketing scheme, but I understand the basics of business management. The no 1 thing is GOG is a business, they need to make money to pay wages, developers, and everyone else. To add to the mix they also have to pay for licensing and including games into their catalog. And then they have to pay bandwidth, and web hosting. And support hosting. And banks.

The fact that GOG is keeping everything DRM free whilst letting you buy older games for lower prices is great. Or is this a complaint that you can't buy games on the cheap?
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General discussion (archive)<b>Letter from the M.D.</b>: About Regional Pricing(5517 posts) (5517 posts) 
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