HoT Price Feedback + Base game included [merged]
in Guild Wars 2: Heart of Thorns
Posted by: lukejoe.1592
To wit, how would a pricing process run in a businesses which obtains its ongoing revenue via a virtual store and thus, how would a common MMO industry practice like F2P affect their thinking?
I don’t know, but what you’re showing us is that ANET has increased incentive to adopt pricing strategies in the context of their entire portfolio of products not that they would price independently.
Only ANET knows what specific metrics they use to evaluate the success of their in-game purchase model and so knows how they make pricing decisions for those services, but I would imagine that at some point they have been able to translate either total logged gameplay hours or total active players (as defined by them) to revenue over time.
You might be thinking that it is overly complex for ANET to balance their desire for profit on game sales with their desire for profit from in game sales because they seem like they are in opposition. But if you or I were given the same assumptions used by ANET to predict unit sales at x price and then unit sales*in game revenue/time we could write a linear program model in Excel that would find our optimal price pretty easily.
I don’t have any privileged information concerning the numbers or tactical choices that govern ANETs pricing decision, but I can tell you roughly how it’s being made. That ANET has two pieces of software to price instead of one complicates the process for them, but it doesn’t change the basic process for arriving at the optimal number (which is ANETs goal).
So some of us are being cut out by the model. We’re the ones who at the 50$ unit price are self selecting out of the market for in game services. If all of the assumptions they made in their model are accurate they still have an optimal price.
Yet our position is that (optimal price or not) we want the game to be cheaper (it’s our right to be advocates for our interests and not for ANETs) and that given this thread is now on 112 pages and we still have people saying “Whoa this is too expensive and I don’t want to subsidize the experience for new players” ANET may have gotten core assumptions wrong and need to resolve their model to get an actually optimized price!
What the savvy person needs to take away is that this is the math behind pricing and the marketing language given here (“To clarify: $50 is the price of the expansion. We included the core game as a free bonus to make it easier for new players to get into it.”) is a way of framing the math for customers in a way that (hopefully) increases their perception of game/brand (um…FAIL!).
It’s actually the price of HoT and the wording of that answer that were arrived at as independent decisions, not the respective prices of HoT and the core game.
Ask yourself, to the new player: what is the difference between paying 50$ for HoT and getting the core game free and paying 50$ for the core game and getting HoT free? There is none.
So while ANET is telling us that everyone is paying 50$ for the expansion, it’s equally true to say that only existing player are paying 50$ for the expansion and new players are all just getting HoT for free.
(edited by lukejoe.1592)