Game Prices

It's occurred to me that the game companies may be following out dated pricing and sales systems. Valve discovered through experimentation on Steam that temporary price cuts could dramatically increase profits. This really should not be a new thing. Many other stores have been doing this for years.

Often the main limitation on doing big sales, are places like Walmart that simply price things as low as they can, and still turn a profit. This forces other companies to either inflate their normal prices, (when compared to discount stores) or lose money on items they cut prices on for the sale boost.

Games however, are generally unique, preventing the heavy price competition other products deal with. Each game company has a monopoly on their game, allowing them to charge much more money if people want to play it.

I'm beginning to think the lack of competitive pricing may be hurting the game industry as a whole. If a game launched with a big short sale, it could build more hype, and get more noticed. It's best to pull in as many people as possible, early, instead of waiting until later when there's more competition to unleash the tempting offers and deals.

A simple thought experiment regarding the new game Champions Online coming out: Champions Online is made by the same company that made the still running City of Heroes game. Due to both games featuring heavy character customization, and superheroes, there's likely to be a lot of overlap in who the two games appeal to.

So, since both CoH (City of Heroes) and CO (Champions Online) are competing for players, and both charge $15 a month for their subscriptions, the two biggest factors for many players is likely to be newness (CO is new, CoH is not) and price. Which means if CO were to cut their price in half or more (down to $25 or less) there would be a lot less reason for current players of CoH to not try out CO. If they went as low as $15 for the first month (maybe include 3 months free with the retail purchase so it can remain a high cost item) then they could probably steal a lot of customers from CoH.