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Where the money goes? What money? The money we pay and the money made by the games developers and publishers. Thats what money I am going on about.
How much does the average new game cost today? £44 or there abouts depending on where you get it from, usually within the range of £32 to £50 anyway. So where does the money from the game go? Well for us in the UK there is the VAT cost added to the final price, the added cost the retailers add to it, the cost to produce for the specific hardware(Sony, Nintendo and Microsoft charge to allow developers to release games for their console, usually a set price for each copy), then the costs to release the game(advertise, production of final copies etc) and lastly the money for the publisher of the game.
The average game today costs millions, usually around the £3 million mark after all the production, marketing and advertising costs are added up.
One thing to note here is the fact that all games differ in cost to produce yet all seem to be released at the same price, much in the same way with DVD's and albums no matter how much they cost to make and record they still get a normal standard price. We know there is a very high demand for certain consoles (Sony are now producing a greater number of PS2's than originally planned to supply the demand) and also for certain games (GTA VC selling out withing the first few weeks), now you can't honestly say that with a lower price you wouldn't expect even more people to become interested in either a console and/or more games they would have overlooked at todays prices.
One thing I can't help think is that we are being ripped off in a big way, and it sadly seems like the retailer is getting the biggest slice of the money cake. But I can't help think that if the cost of games went down then surely people would buy more games. Therfore if the price of a game was to half then you would naturally buy more games so the loss of money to those who gain from each sale would be very low possibly even more. The reason games cost so much is because the publishers think they can get away with charging that much and they are right, nobody seems to do anyhting about it.
You could argue that the cost of game effects the games we see, so many sequels and unorigial ideas because the risk is so high, this is why developers produce games they know are similar in a way to those who have sold well. So to release a new original idea you have to to take a risk and also get lucky. Unless people know enough about a game it is unlikely they are going to buy it, with a lower cost it could well be that not only will you buy more games but also buy games that you may never consider buying before.
One of the facts I had never heard until recently was the fact that around 95% of all games released actually lose money, the publishers only seem to survive on the games that sell really well. Also how many of you actually know that ELSPA asks the government for subsidies similar to the ones that the movie industry get. its crazy, we pay high prices and also have tax going into it too.
There is no reason why a game couldn't cost similar to the price of a DVD, its only the fact that we time after time will fork out the price asked without asking questions and without thinking twice about where the money goes.
The number of people I have talked to who think most goes to the coders who made the whole thing possible in the first place is surprising.
There is also the argument that cheaper games could well see a reduction in the piracy market, although there could be so many arguments and views in this area as some pirate copies can be dirt cheap depending on how you obtain yours. I'll not say much on this area as I don't want to distract it from the main aim of the post - the price of games.
So what can be done to change things? Well why can't the likes of Sony and Nintendo charge a certain percentage of the overall cost instead of a fixed price per copy? Could see a decent drop in price per game. For us at least the best thing to do is buy games from the cheapest place which for me is special reserve, but ultimately that effects things, what needs to be done is let those who matter know. For one week in December (The 1st to the 8th) certain magazines etc are promotting a campaign for cheaper games and are asking folk not to buy games during this week if they agree just to help get the message across.
I honestly can't see why we have allowed games to get so costly and also why the publishers don't see that by lowering the cost they could benefit themselves. Everyone benefits from it. We get cheaper games, more original ideas could be used and the publishers could sell more copies of games, attract more fans etc. It would be hard for them to lose money from it all, very hard.
So thats where the money goes, why we pay so much and why we should be doing something about it.
We wouldn't except it in most other industries and with other products/merchandise so why should we allow it with games?
The only thing I can think of is not knowing where the money goes and why we are being ripped off - Well know you do....
How much does the average new game cost today? £44 or there abouts depending on where you get it from, usually within the range of £32 to £50 anyway. So where does the money from the game go? Well for us in the UK there is the VAT cost added to the final price, the added cost the retailers add to it, the cost to produce for the specific hardware(Sony, Nintendo and Microsoft charge to allow developers to release games for their console, usually a set price for each copy), then the costs to release the game(advertise, production of final copies etc) and lastly the money for the publisher of the game.
The average game today costs millions, usually around the £3 million mark after all the production, marketing and advertising costs are added up.
One thing to note here is the fact that all games differ in cost to produce yet all seem to be released at the same price, much in the same way with DVD's and albums no matter how much they cost to make and record they still get a normal standard price. We know there is a very high demand for certain consoles (Sony are now producing a greater number of PS2's than originally planned to supply the demand) and also for certain games (GTA VC selling out withing the first few weeks), now you can't honestly say that with a lower price you wouldn't expect even more people to become interested in either a console and/or more games they would have overlooked at todays prices.
One thing I can't help think is that we are being ripped off in a big way, and it sadly seems like the retailer is getting the biggest slice of the money cake. But I can't help think that if the cost of games went down then surely people would buy more games. Therfore if the price of a game was to half then you would naturally buy more games so the loss of money to those who gain from each sale would be very low possibly even more. The reason games cost so much is because the publishers think they can get away with charging that much and they are right, nobody seems to do anyhting about it.
You could argue that the cost of game effects the games we see, so many sequels and unorigial ideas because the risk is so high, this is why developers produce games they know are similar in a way to those who have sold well. So to release a new original idea you have to to take a risk and also get lucky. Unless people know enough about a game it is unlikely they are going to buy it, with a lower cost it could well be that not only will you buy more games but also buy games that you may never consider buying before.
One of the facts I had never heard until recently was the fact that around 95% of all games released actually lose money, the publishers only seem to survive on the games that sell really well. Also how many of you actually know that ELSPA asks the government for subsidies similar to the ones that the movie industry get. its crazy, we pay high prices and also have tax going into it too.
There is no reason why a game couldn't cost similar to the price of a DVD, its only the fact that we time after time will fork out the price asked without asking questions and without thinking twice about where the money goes.
The number of people I have talked to who think most goes to the coders who made the whole thing possible in the first place is surprising.
There is also the argument that cheaper games could well see a reduction in the piracy market, although there could be so many arguments and views in this area as some pirate copies can be dirt cheap depending on how you obtain yours. I'll not say much on this area as I don't want to distract it from the main aim of the post - the price of games.
So what can be done to change things? Well why can't the likes of Sony and Nintendo charge a certain percentage of the overall cost instead of a fixed price per copy? Could see a decent drop in price per game. For us at least the best thing to do is buy games from the cheapest place which for me is special reserve, but ultimately that effects things, what needs to be done is let those who matter know. For one week in December (The 1st to the 8th) certain magazines etc are promotting a campaign for cheaper games and are asking folk not to buy games during this week if they agree just to help get the message across.
I honestly can't see why we have allowed games to get so costly and also why the publishers don't see that by lowering the cost they could benefit themselves. Everyone benefits from it. We get cheaper games, more original ideas could be used and the publishers could sell more copies of games, attract more fans etc. It would be hard for them to lose money from it all, very hard.
So thats where the money goes, why we pay so much and why we should be doing something about it.
We wouldn't except it in most other industries and with other products/merchandise so why should we allow it with games?
The only thing I can think of is not knowing where the money goes and why we are being ripped off - Well know you do....
I don't think you understand. Retailers HAVE to charge more. They have to pay for premises, extra staff, in-store promotion. SR does have stores, but it has about 7 stores, compared to GAME who probably have 100s in the UK alone. All the overheads add up, and thus increase the price. I'm not saying that the prices they charge are necessarily fair, and neither am I saying they don't get the biggest slice of profit, but retailer do have to charge more than mail order and online shops as they have more costly overheads to cover.
Also, another point about the console manufacturers. They charge the fees for developers to release games on their machine. This is a fixed price at the moment, and this FairPlay campaign or whatever proposes a variable percentage to be charged. But the manufacturers also lose money for every console they sell. This needs to be made back somehow. The charge per game goes towards covering the loss that every console sold makes. Changing this to a percentage and dropping cost to the consumer may well mean demand increases for games, so the developers supply more and so Nintendo/Sony/MS get back the extra cash, but it would be a great risk for any company. Also, the percentage idea relies on the fact that if the price halved, demand would double. This may well be the case for some games, but the 95% of games that do make a loss probably wouldn't be affected that much. Joe public will probably just buy an extra well known and well advertised game rather than buy a game that he hasn't heard about.
Oh, and PC games have no charge to the developers by the system manufacturer as far as I'm aware, and PC games still cost £30-£40 for most new titles. So what makes people so sure that a percentage charge to developers would have such a drastic effect?
Finally the DVD point. DVDs almost always contain a film or TV series. These have already been made, and served their purpose, either making profit or at least contributing to the costs at the Box Office, or on TV. So when it comes onto DVD those costs of actually making the film/TV series are not repeated. The company doesn't have to make up all its costs from sale of the DVD as it has already made up some costs (possibly all) before the DVD is even out. So they can afford to charge less. A videogame must make up all the costs through actual sales of the game.
As you can probably tell, I have some issues with the logic of the FairPlay campaign...
Also, another point about the console manufacturers. They charge the fees for developers to release games on their machine. This is a fixed price at the moment, and this FairPlay campaign or whatever proposes a variable percentage to be charged. But the manufacturers also lose money for every console they sell. This needs to be made back somehow. The charge per game goes towards covering the loss that every console sold makes. Changing this to a percentage and dropping cost to the consumer may well mean demand increases for games, so the developers supply more and so Nintendo/Sony/MS get back the extra cash, but it would be a great risk for any company. Also, the percentage idea relies on the fact that if the price halved, demand would double. This may well be the case for some games, but the 95% of games that do make a loss probably wouldn't be affected that much. Joe public will probably just buy an extra well known and well advertised game rather than buy a game that he hasn't heard about.
Oh, and PC games have no charge to the developers by the system manufacturer as far as I'm aware, and PC games still cost £30-£40 for most new titles. So what makes people so sure that a percentage charge to developers would have such a drastic effect?
Finally the DVD point. DVDs almost always contain a film or TV series. These have already been made, and served their purpose, either making profit or at least contributing to the costs at the Box Office, or on TV. So when it comes onto DVD those costs of actually making the film/TV series are not repeated. The company doesn't have to make up all its costs from sale of the DVD as it has already made up some costs (possibly all) before the DVD is even out. So they can afford to charge less. A videogame must make up all the costs through actual sales of the game.
As you can probably tell, I have some issues with the logic of the FairPlay campaign...
Yeah great point Ali. I do sometimes wonder where all the money goes, but I think that companies like SR and other online companies proove where it goes... to the retailers. Clearly SR pay as much as say HMV for the games, yet SR sell them cheaper. So highstreet shops like HMV and Game just charge higher, probably for a convenience matter? Maybe for the heating in the shops?
Where the money goes? What money? The money we pay and the money made by the games developers and publishers. Thats what money I am going on about.
How much does the average new game cost today? £44 or there abouts depending on where you get it from, usually within the range of £32 to £50 anyway. So where does the money from the game go? Well for us in the UK there is the VAT cost added to the final price, the added cost the retailers add to it, the cost to produce for the specific hardware(Sony, Nintendo and Microsoft charge to allow developers to release games for their console, usually a set price for each copy), then the costs to release the game(advertise, production of final copies etc) and lastly the money for the publisher of the game.
The average game today costs millions, usually around the £3 million mark after all the production, marketing and advertising costs are added up.
One thing to note here is the fact that all games differ in cost to produce yet all seem to be released at the same price, much in the same way with DVD's and albums no matter how much they cost to make and record they still get a normal standard price. We know there is a very high demand for certain consoles (Sony are now producing a greater number of PS2's than originally planned to supply the demand) and also for certain games (GTA VC selling out withing the first few weeks), now you can't honestly say that with a lower price you wouldn't expect even more people to become interested in either a console and/or more games they would have overlooked at todays prices.
One thing I can't help think is that we are being ripped off in a big way, and it sadly seems like the retailer is getting the biggest slice of the money cake. But I can't help think that if the cost of games went down then surely people would buy more games. Therfore if the price of a game was to half then you would naturally buy more games so the loss of money to those who gain from each sale would be very low possibly even more. The reason games cost so much is because the publishers think they can get away with charging that much and they are right, nobody seems to do anyhting about it.
You could argue that the cost of game effects the games we see, so many sequels and unorigial ideas because the risk is so high, this is why developers produce games they know are similar in a way to those who have sold well. So to release a new original idea you have to to take a risk and also get lucky. Unless people know enough about a game it is unlikely they are going to buy it, with a lower cost it could well be that not only will you buy more games but also buy games that you may never consider buying before.
One of the facts I had never heard until recently was the fact that around 95% of all games released actually lose money, the publishers only seem to survive on the games that sell really well. Also how many of you actually know that ELSPA asks the government for subsidies similar to the ones that the movie industry get. its crazy, we pay high prices and also have tax going into it too.
There is no reason why a game couldn't cost similar to the price of a DVD, its only the fact that we time after time will fork out the price asked without asking questions and without thinking twice about where the money goes.
The number of people I have talked to who think most goes to the coders who made the whole thing possible in the first place is surprising.
There is also the argument that cheaper games could well see a reduction in the piracy market, although there could be so many arguments and views in this area as some pirate copies can be dirt cheap depending on how you obtain yours. I'll not say much on this area as I don't want to distract it from the main aim of the post - the price of games.
So what can be done to change things? Well why can't the likes of Sony and Nintendo charge a certain percentage of the overall cost instead of a fixed price per copy? Could see a decent drop in price per game. For us at least the best thing to do is buy games from the cheapest place which for me is special reserve, but ultimately that effects things, what needs to be done is let those who matter know. For one week in December (The 1st to the 8th) certain magazines etc are promotting a campaign for cheaper games and are asking folk not to buy games during this week if they agree just to help get the message across.
I honestly can't see why we have allowed games to get so costly and also why the publishers don't see that by lowering the cost they could benefit themselves. Everyone benefits from it. We get cheaper games, more original ideas could be used and the publishers could sell more copies of games, attract more fans etc. It would be hard for them to lose money from it all, very hard.
So thats where the money goes, why we pay so much and why we should be doing something about it.
We wouldn't except it in most other industries and with other products/merchandise so why should we allow it with games?
The only thing I can think of is not knowing where the money goes and why we are being ripped off - Well know you do....
How much does the average new game cost today? £44 or there abouts depending on where you get it from, usually within the range of £32 to £50 anyway. So where does the money from the game go? Well for us in the UK there is the VAT cost added to the final price, the added cost the retailers add to it, the cost to produce for the specific hardware(Sony, Nintendo and Microsoft charge to allow developers to release games for their console, usually a set price for each copy), then the costs to release the game(advertise, production of final copies etc) and lastly the money for the publisher of the game.
The average game today costs millions, usually around the £3 million mark after all the production, marketing and advertising costs are added up.
One thing to note here is the fact that all games differ in cost to produce yet all seem to be released at the same price, much in the same way with DVD's and albums no matter how much they cost to make and record they still get a normal standard price. We know there is a very high demand for certain consoles (Sony are now producing a greater number of PS2's than originally planned to supply the demand) and also for certain games (GTA VC selling out withing the first few weeks), now you can't honestly say that with a lower price you wouldn't expect even more people to become interested in either a console and/or more games they would have overlooked at todays prices.
One thing I can't help think is that we are being ripped off in a big way, and it sadly seems like the retailer is getting the biggest slice of the money cake. But I can't help think that if the cost of games went down then surely people would buy more games. Therfore if the price of a game was to half then you would naturally buy more games so the loss of money to those who gain from each sale would be very low possibly even more. The reason games cost so much is because the publishers think they can get away with charging that much and they are right, nobody seems to do anyhting about it.
You could argue that the cost of game effects the games we see, so many sequels and unorigial ideas because the risk is so high, this is why developers produce games they know are similar in a way to those who have sold well. So to release a new original idea you have to to take a risk and also get lucky. Unless people know enough about a game it is unlikely they are going to buy it, with a lower cost it could well be that not only will you buy more games but also buy games that you may never consider buying before.
One of the facts I had never heard until recently was the fact that around 95% of all games released actually lose money, the publishers only seem to survive on the games that sell really well. Also how many of you actually know that ELSPA asks the government for subsidies similar to the ones that the movie industry get. its crazy, we pay high prices and also have tax going into it too.
There is no reason why a game couldn't cost similar to the price of a DVD, its only the fact that we time after time will fork out the price asked without asking questions and without thinking twice about where the money goes.
The number of people I have talked to who think most goes to the coders who made the whole thing possible in the first place is surprising.
There is also the argument that cheaper games could well see a reduction in the piracy market, although there could be so many arguments and views in this area as some pirate copies can be dirt cheap depending on how you obtain yours. I'll not say much on this area as I don't want to distract it from the main aim of the post - the price of games.
So what can be done to change things? Well why can't the likes of Sony and Nintendo charge a certain percentage of the overall cost instead of a fixed price per copy? Could see a decent drop in price per game. For us at least the best thing to do is buy games from the cheapest place which for me is special reserve, but ultimately that effects things, what needs to be done is let those who matter know. For one week in December (The 1st to the 8th) certain magazines etc are promotting a campaign for cheaper games and are asking folk not to buy games during this week if they agree just to help get the message across.
I honestly can't see why we have allowed games to get so costly and also why the publishers don't see that by lowering the cost they could benefit themselves. Everyone benefits from it. We get cheaper games, more original ideas could be used and the publishers could sell more copies of games, attract more fans etc. It would be hard for them to lose money from it all, very hard.
So thats where the money goes, why we pay so much and why we should be doing something about it.
We wouldn't except it in most other industries and with other products/merchandise so why should we allow it with games?
The only thing I can think of is not knowing where the money goes and why we are being ripped off - Well know you do....