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Most games out excluding platinum are above the £30 price tag. Well, why? £39.99 is the most common price I see, and I have even saw Onimusha 2 in Woolies for £50. Why so expensive? The answer is simple - Greed.
I give Greed a capital g because it's a major factor in the pricing of games.
Let's go through the factors concerning production.
1) Raw materials.
Plastic and platinum. Platinum is the most expensive between the two, so obviously it's going to cost more. Lets say it costs £5 for the raw materials.
2)Labour Force.
Obviously those who extract the raw materials are going to get paid, and the few people that work in the game producing companies get paid too. Lets say another £5.
3)Transport Costs.
To and from the companies. Alot of discs, so the cost is balanced out. Another £5
4)Developers.
Obviously they are going to be paid more than everyone else. Lets say £10 shall we?
5)Shops
Finally, the shops that sell the finished product. Most shops get about £5 out of every game that they sell. Some goes to owners, the rest to staff.
This brings the grand total to £30. So why are most games on retail for £39.99 - an extra £9.99 than is needed. The answer is simple -
Developer's Greed.
Thanks for reading.
Feedback would be very much appreciated.
I give Greed a capital g because it's a major factor in the pricing of games.
Let's go through the factors concerning production.
1) Raw materials.
Plastic and platinum. Platinum is the most expensive between the two, so obviously it's going to cost more. Lets say it costs £5 for the raw materials.
2)Labour Force.
Obviously those who extract the raw materials are going to get paid, and the few people that work in the game producing companies get paid too. Lets say another £5.
3)Transport Costs.
To and from the companies. Alot of discs, so the cost is balanced out. Another £5
4)Developers.
Obviously they are going to be paid more than everyone else. Lets say £10 shall we?
5)Shops
Finally, the shops that sell the finished product. Most shops get about £5 out of every game that they sell. Some goes to owners, the rest to staff.
This brings the grand total to £30. So why are most games on retail for £39.99 - an extra £9.99 than is needed. The answer is simple -
Developer's Greed.
Thanks for reading.
Feedback would be very much appreciated.
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Shadow Knight wrote:
> it's the shops that make the big prices not the developers, i walk
> into Woolworths and almost every game is at least £40 then i
> walk into Dixons and most games are about £30 to £40 range
> but they always lower prices on games that have been around a while.
>
> *walks into Woolworths and sees Agent under fire for £45*
it isnt just the shops and not just the delepers either its abit of both. bacause the shops want a profit and they put the prices up by about £10 - £30 pounds depending on what shop it is. argos are selling games as new as the getaway for £30 where as game are selling the getaway for £45. if you brought the game from the publishers you could get it much cheaper and you could by twice as many games as you could fom places like game.
> it's the shops that make the big prices not the developers, i walk
> into Woolworths and almost every game is at least £40 then i
> walk into Dixons and most games are about £30 to £40 range
> but they always lower prices on games that have been around a while.
>
> *walks into Woolworths and sees Agent under fire for £45*
it isnt just the shops and not just the delepers either its abit of both. bacause the shops want a profit and they put the prices up by about £10 - £30 pounds depending on what shop it is. argos are selling games as new as the getaway for £30 where as game are selling the getaway for £45. if you brought the game from the publishers you could get it much cheaper and you could by twice as many games as you could fom places like game.
Im guessing that post was influenced by an article in PSM2? The retailers do get a fair chunk of the money, so maybe this is why Rockstar havn't made as much money as was said in a previous post. If their only getting around 14% of the sales, then they may need to keep charging higher prices to make the difference, maybe.
it's the shops that make the big prices not the developers, i walk into Woolworths and almost every game is at least £40 then i walk into Dixons and most games are about £30 to £40 range but they always lower prices on games that have been around a while.
*walks into Woolworths and sees Agent under fire for £45*
*walks into Woolworths and sees Agent under fire for £45*
Well, say for example you had something you knew would sell for £100 with no problem at all, would you accept £50 for it?
Games are expensive, I admit that, and I would like to see them becoming cheaper, but we dont know the half of what developers must go through to make games, and the expenses they may occur in the proccess.
Also, the demand for games is very high, as you will know, the games industry is becoming one of the most poular. So the developers are willing to supply the goods, but they will have done their research into pricing, and will have given games their prices according to the results. So they basically find an equilibruium in the market which allows them to make as much profit as possible whilst keeping supply relevant to demand.
Do you buy games for £40? If you do, then you shouldn't really be complaining, because it obviously doesn't bother you that much.
Games are expensive, I admit that, and I would like to see them becoming cheaper, but we dont know the half of what developers must go through to make games, and the expenses they may occur in the proccess.
Also, the demand for games is very high, as you will know, the games industry is becoming one of the most poular. So the developers are willing to supply the goods, but they will have done their research into pricing, and will have given games their prices according to the results. So they basically find an equilibruium in the market which allows them to make as much profit as possible whilst keeping supply relevant to demand.
Do you buy games for £40? If you do, then you shouldn't really be complaining, because it obviously doesn't bother you that much.
with Vice city being really good and selling way over 1,000,000 copies charging £40 for each copy thats £40,000,000 thats more than alot if you had that much you wouldn't need any more money so why wont rockstar sell the next GTA at £20 they would still get about £20,000,000 and with it cheaper they will sell more. games are well over priced
But with that profit, and the little extra they get, they can develop even more games which then result in more profit, for yet more games. Its just to keep them in business.
Plus I bet there are a lot of expenses we dont know about. Also, VAT plays a major factor too.
Plus I bet there are a lot of expenses we dont know about. Also, VAT plays a major factor too.
Profit eh? Well, say 10,000 games are sold. Times 10,000 by £10 = £100,000. Is that not enough profit? Add on the extra £9.99 and you get approx. £200,000. It's Greed I say, Greed.
The developers hardly make any money from the sales, the retailers are the ones that are cashing in.
PROFIT.
I've got to say that I agree!
I'm only an ikkle gurl! (15 years actually!) and I don't get paid ever so much from the parents! And I don't feel much like working, so...well! Boo hoo hoo! Do I have to make do with somebody elses garbage, from the Game Pre-owned bin? I wanna buy Kingdom Hearts! I wanna Buy FF10 - but no! I've other things 2 buy also, the prices should be lowered! Hey! I know let's all go to Japan, at least things are cheaper there!
I'm only an ikkle gurl! (15 years actually!) and I don't get paid ever so much from the parents! And I don't feel much like working, so...well! Boo hoo hoo! Do I have to make do with somebody elses garbage, from the Game Pre-owned bin? I wanna buy Kingdom Hearts! I wanna Buy FF10 - but no! I've other things 2 buy also, the prices should be lowered! Hey! I know let's all go to Japan, at least things are cheaper there!
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