HoT Price Feedback + Base game included [merged]
in Guild Wars 2: Heart of Thorns
Posted by: phys.7689
Erm as a company don’t they need to declare to the government what their profit margin is so they can pay tax? You guys are acting like “cost of creating HoT” has no number attached.. You can’t just say “sell for £25 and sell more than £35” they have set a cost of development and projection on sales per unit and clearly have found their projection on £35 is best for the company. They need to generate profit for their shareholders and pay tax and wages and cover costs of development – you can’t just ask them to charge less money and maybe more will be sold…
All these factors need to be worked into the cost of a sale and so slashing 30% off the price to customer impacts the profit margin and that makes the product less viable – remember by law they have shareholders, tax and wages to consider – not to mention company liquidity and future planning – Anet will also be publishing GW2 from now on. Thats a lot of responsibility and burden.
Everyone likes things cheaper, that doesn’t mean the thing you want can survive if it is…
firstly, my point still stands. In order to consider what you are talking about, you only have to look at raw production costs per customer, not costs of development. This product doesnt have a lot of those costs, especially if they can make people order from them, with a attractive price point and marketing.
for this type of good, especially the way they sell it now.
The initial cost per sale is very low. The main cost is development and standard running of the company. This doesnt really change much based on number of users
This is the type of product that is well matched with a strat that hits as many different customers as possible.like say for example ; say im making a song to be sold via digital distribution on my website.
The costs are virtually the same whether i sell one song or 1 million songsnow, also imagine on average, the people who buy my song bring in 4 dollars more per month in watching youtube videos, and advertisements on my website.
In this situation, with a extremely low cost per sale, no inventory costs, and distribution costs, my best bet is to sell as many songs as humanly possible while still making the same, or more money.
so if i can choose between selling songs for 25cents at 4 million customers, or selling 100,000 at 10 dollars, i should choose the the 25cent price point.now of course this is simplified, 25 cents would be unfeasible due to CC transaction costs, but point is, regardless of your development costs, the end result goal is to get as many customers and as much money as you can. You can actually achieve that a lot better with lower price points and still make more money.
Your words would have more weight if you knew more than a single number, £35. Since you don’t all your saying is “HoT’s publisher has chosen a price to deliberately lose them money, don’t ask how I know but let me tell you about my imaginary music which cost nothing, required no marketing to get 4M customers and had zero distribution costs.”
Im not saying the chose a price to deliberately lose them money, im saying now that we can see how this played out, we can see that most likely they chose the wrong price point.
They decided to charge on the upper teir of expansions (the only one i can name is WoW) with substantially less content in the purchase. Even wow had issues with that price point with more content offered.Based on the backlash alone, you can tell you chose the wrong price point. People generally dont crazy unless the number you pick just seems wrong to them.
Im sure they didnt do it deliberately, deciding to go above average on your price point is always a gamble, they thought they were winning. I think they overestimated the current perception of anet and the product.
Now i fully concede its possible im wrong, its possible that 80% of the people who hot could have gotten at any price purchased, but from the information available that seems highly unlikely.
They can basically compare people who bought the first gw2 as a theoretical maximum (though its possible to go higher, but improbable) im fairly certain the current re adoption rate of HoT is not large. Might change when its in more stores, but i dont think you ll see numbers like last time, which had like 3 mil in the first few months i think? without a china release.
Short version; I think they made a bad guess, and could have made more money with a different package and marketing.
anyhow im sure they will still profit. They just wont profit as much, with as much good will (my opinion)
My point is we cannot see how this played out… NONE of us can see the sales figures.. Remember people typing stuff into the forums on this topic is a tiny, tiny, tiny fraction of the player base, we just don’t know and asking for a price reduction because “they picked the wrong price” from your position of ignorance has nothing to stand on.
the only way to really test it, is to do more market research.
however, they actually got a ton of market research when they released the price, and it was fairly negative, not just here, but throughout various gaming sites/circles.
In general they take surveys, and they ask people
would you buy at X price?
would you buy at X-10 price?
etc.
The fact they added the char slot to prepurchase suggests that they were not hitting the expected sales points. And the negative feedback throughout the gaming community also suggests this.
Thats about as close as you can get in business to a suggestion that you have the wrong price point.
Your main demographic complains voiciferously, and you arent hitting your projected goals.
let me tell you again, a lower price point does not necessarilly mean less profits.
People make mistakes, the key is, i hope they learn from their mistakes.
The best thing they can probably do now, is over deliver on content. However, based on the info on the last 3 years, this will be difficult.
Hopefully the next expansion they offer is either cheaper or has more content, or the feeling on the live service goes up so drastically that people think its worth it to buy in early.
Part of the problem is the last like year of GW2 live service hasnt been too interesting for many people, often actually making them less satisfied. promises of cool live updates seem flat based on recent history.