Want to Solve the Used Game Dilemma? Here’s How to Do It.
by Deejay Knight: at November 12th, 2008, 4:29 am
The Solution
Anyone who owns anything knows that items are only as valuable as the price people are willing to pay for them. At $60 a pop, games are an expensive hobby to partake. So expensive, in fact, that the $5 discount that Gamestop extends on new titles ($10 if you have an Edge card) is enough to make cost conscious gamers overlook brand new copies of games. Of course there are hardcore gamers that overlook these used titles because they would like to support the developers, but many aren’t aware – and frankly don’t care either way. They want to save money, and who can blame them?
Keeping the developer in mind, there are a couple of ways to correct what these developers see as a major problem – erosion of their income by an outside force as large as Gamestop.
Suggestion One
One sugestion is to follow Epic Games’ lead. Mike Capps’ company has taken a simple, but effective attack on used game sales with Gears of Warwar reviews
2. With each copy of Gears of War 2 comes a token which allows you to download a Map Pack containing the best multiplayer maps from the original Gears of War. This attacks used sales on two levels:
- It gives the maps to the gamers who bought the title new, subtly taunting users who bought the game used with maps they don’t own each time they go online.
- If properly priced, those gamers will then download the maps, giving Epic a bit of secondary income.
Simple and effective.
There’s also another way to lower used game sales that would only take one major developer or publisher to lead the charge: Lower the cost of new games. Not all at once, mind you (although that would be a good alternative), but hear me out.
I’m suggesting a simple, but fair, tiered pricing system.
Suggestion Two
Launch your game at $60, that’s all fine and good. After launch, however, keep an eye on sales of your title. Once the sales are below a comfortable threshold, let’s say 10,000 units per month, lower the MSRP by $5 – $10. The lower price would be coupled with press releases and advertisements in related magazines/websites announcing the lower price. This has two positive effects:
- Sales of the new copies are likely to increase due to the lower cost.
- Gamestop is then forced to lower it’s used prices, cutting into it’s income stream.
Keeping an eye on sales and adjusting prices accordingly would keep used game retailers on their toes, as each title would have different sales points. Also, let’s face it, every title isn’t a AAA title like Call of Duty 4 or Gears of War 2. Unknown titles or franchises could be lowered to $45 – $50 on launch, with $55 – $60 limited editions to spur sales and get the title in more gamers’ hands. then if they become profitable, the next title in the series – with properly updated features – would debut at the usual $60 price tag
Every time the title’s sales dip to unacceptable numbers, drop the price. Make $30 the lowest shelf price and price drop accordingly.
Suggestion Three
Break out the free DLC! That’s right, you heard me, give out free downloadable content. This pulls gamers who already own the title to keep playing the title and has the added benefit of brining in new buyers if the DLC is cool enough (make it cool enough). Gamerpics, themes, wallpapers, trailers, and a demo. You can even have free and paid variations of each on title launch, so none of your users feels left out.
While releasing free DLC, you can even introduce low priced DLC – I’m talking $0.50 – $3 max – at the same time, taking advantage of the incremental income. Levels and larger DLC would cost more, expectedly, but the price shouldn’t be higher than that. Any higher and you’ll scare most gamers off.
Yes, I’m serious.
A great suggestion is to do this for multiple situations. Free DLC on launch as well as free and paid DLC on price drop.
Suggestion Four
The best suggestion? Use each of the previous three suggestions simultaneously.
- Release your title with a downloadable content bonus to new buyers at an appropriate price. Don’t forget the free/low-cost DLC.
- When sales dip below a comfortable level for your title, lower the price by $5-10.
- Prepare downloadable content that coincides with the lower price. Both free DLC and low-cost content should be applied.
It combines each of the previous three suggestions to optimal results. Not only does your title stay in the gaming news spotlight, and therefore in the minds of gamers, but those gamers are happy. When your title is in the minds of gamers and they get bonuses over time, they stick with your game and they stick with your company.
Check Page 4 for the wrap-up.
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