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"Campaign for Cheaper videogames"

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Sat 16/11/02 at 14:20
Regular
Posts: 787
Visit
http://www.fairplay-campaign.co.uk/
Sign the petition, and don't buy games during the week of 1st-8th December to lower the prices of videogames in a huge campaign.
Why pay more? We are being ripped off.
Sat 16/11/02 at 23:21
Regular
"Peace Respect Punk"
Posts: 8,069
I looked at the campaign, and some of it makes sense, some though is bollards.


They say the one major reason why currently selling games cheaper doesn't happen is hardware fees (ie. Ninty, Sony, MS charging a set fee for the developer to publish a game on their hardware). They reckon if hardware fees became a percentage of the game price the cost to consumers would be lowered.

Problem 1- All console manufacturers lose money on selling their console. They need to make it up through games. If they charge a percentage fee and the price is about £20 (what that fairplay reckons is a fair price) they won't make as large a profit, assuming sales remain constant. Now I know sales will increase as cost is reduced, but I think the fairplay prediction that if cost halves demand will double is probably a little optimistic... So the percentage hardware fees would likely cost console manufacturers money...

Observation 1- PC games have no hardware fees as far as I'm aware... so why are they still about £35 new (which is about the same, maybe £5 cheaper, than a new console game...) Admittedly PC games tend to drop in price quicker, but they still initially retail at what Fairplay reckons is a rip off price without the hardware fees...


They also say retailers take a percentage profit from the game (ie. they get the games from the wholesalers and add a percentage mark up to get the selling price...) which is probably true. However, they assume that when the price is reduced, the retailers mark up will remain the same percentage...

Problem 2- I doubt the retailers mark up percentage will stay the same. Retailers know they can get £30+ for games. If the wholesaler starts selling them games for £9, £13, whatever, they won't just think, "oh, we'll add the usual 30% or so to that price", they'll add as much as they know consumers are willing to pay. This will just mean everyone else gets profits equivilent to if the game was sold at £15-£20 but the retailer makes a huge % profit compared to the poor suckers who developed and published the game...


Some pretty integral parts of the argument they put forward seem flawed to me... but I agree £40 for a game is steep.
Sat 16/11/02 at 14:27
Regular
Posts: 15,681
I'm going to start a campaign to raise the prices of games, get all the staff in videogames retail and design throughout the world to sign a petition with the promise in increased wages, and make sure everyone buys lots of games on the same day as the other campaign.

Well actually I'm not, I'm too lazy.
Sat 16/11/02 at 14:27
Regular
Posts: 15,579
Or just go down argos.

All new PS2 games £29.99.

Nice
Sat 16/11/02 at 14:21
Regular
"Festivus!"
Posts: 6,228
Been done before and I don't care. Booyah!
Sat 16/11/02 at 14:20
Regular
Posts: 6
Visit
http://www.fairplay-campaign.co.uk/
Sign the petition, and don't buy games during the week of 1st-8th December to lower the prices of videogames in a huge campaign.
Why pay more? We are being ripped off.

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