Videogames on sale on release week

Discussion in 'Archived Threads 2001-2004' started by Robert Burkes, Nov 13, 2002.

  1. Robert Burkes

    Robert Burkes Second Unit

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    Does anyone else ever wonder why videogames aren't put on sale during the week of release a la CD/DVD/books? I've just been thinking lately that Best Buy, Circuit City, etc. should adopt this practice with all of their software. What do you all think?

    Rob
     
  2. EdR

    EdR Second Unit

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    Interesting question. I suppose it could have something to do with the health of the video game industry, which has recently surpassed the feature film industry in terms of sales (and that's for software, not including hardware sales).

    Why discount something that people are clamoring to get?

    I'm no economist, that's just my guess.
     
  3. Scott L

    Scott L Producer

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    Something interesting is Grand Theft Auto: Vice City was $39.99 (normally $49.99) at Best Buy the first week of release. Everyone knew this game was going to sell out and there'd be huge demand but it was decided to price it $10 less than the competition.

    To be honest I wasn't planning on buying GTA:VC upon release, maybe sooner or later, but not ASAP. But when I saw the $40 price tag I made sure I had a copy before the week was up.

    I think this idea would help the industry rather than hurt it.
     
  4. Masood Ali

    Masood Ali Supporting Actor

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    Best Buy puts a surprising number of games on sale, for a huge B&M chain. CC has it's fair share as well, but usually not the big items like GTA3VC. What makes BB's sales more interesting is that they usually have a $5 off $20 coupon for video games available in gaming mags and in-store.
     
  5. Jeff Kleist

    Jeff Kleist Executive Producer

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    Only games that are going to sell a bajillion copies (like GTA) are going to be on sale week 1
    I'm personally hoping for some black friday XB Live combo deals [​IMG]
     
  6. Camp

    Camp Cinematographer

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    They're called loss leaders. Sell a high profile item at a loss (or very near it) in the hope that the majority of shoppers will make an additional purchase that will more than make up for the low price.

    It's all about increasing the per capita sale. You can sell Episode 2 on DVD for $9.99 (a $5 loss) and still expect to make money on add-on sales. If it's only $9.99 your customer is very likely to buy something else. Especially when you consider the volume of sales this price will draw (as nearly everyone owns a DVD player).

    You can't necessarily expect a video game slashed to $29.99 to help fetch additional sales. Your customer is spending $30 and very well won't buy anything else. If you're loosing money at that price you're shooting yourself in the foot if your customers don't buy anything else. When you compare the volume of video game sales to music & DVD the math suddenly doesn't add up in favor of making money this way.
     
  7. Camp

    Camp Cinematographer

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  8. GlenHaag

    GlenHaag Supporting Actor

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    I've been watching this for quite a few years. I used to be a "shopper" for a market for a major retailer, and found that I think they avoid advertising prices and such on brand new games because delays are so much more common with video games. This also has something to do with the fact that most flyers are printed out weeks before they hit the stores.

    I'm beginning to find myself waiting a few weeks before picking up most titles now adays, just to see if I can save a few bucks a few weeks later.

    That's just my thoughts, YMMV.

    Glen
     
  9. Bob McElfresh

    Bob McElfresh Producer

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    I have found that PC games are often discounted by about $10 the first week of release at CompUSA. BestBuy often does the same thing, but only like 1 title per week.

    But console games are different. I suspect this is because there are fewer competing titles and a much, much smaller market. A PC game has potentially millions of customers on the day of release. An XBox game - a few hundred thousand.
     
  10. Bob McElfresh

    Bob McElfresh Producer

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    duplicate post [​IMG]
     
  11. EdR

    EdR Second Unit

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  12. Jeff Kleist

    Jeff Kleist Executive Producer

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    It's not because PCs have millions of potential customers, it's because they don't have to pay a roughly $10 licensing fee to the conole maker per game
     
  13. Bob McElfresh

    Bob McElfresh Producer

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  14. Damien

    Damien Supporting Actor

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    someone at EB told me Best Buy didn't get any more shipments of VC since they cut the price without Rockstar's permission.
     
  15. Jeff Kleist

    Jeff Kleist Executive Producer

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    Quite doubtful
     
  16. Jay Mitchosky

    Jay Mitchosky Producer

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  17. BrianB

    BrianB Producer

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  18. Ryan Peter

    Ryan Peter Screenwriter

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    Strange they'd be mad at a business decision BB made (playing loss leader). Loss leader isn't about selling titles that don't sell, it's about getting people's asses in YOUR store and not the other store by discounting the hottest new stuff.
     
  19. GlenHaag

    GlenHaag Supporting Actor

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    I don't see why Rockstar would be upset at them. Best Buy would pay them the exact same price per copy no matter what they sold the game at. It shouldn't hurt Rockstar's bottom line one bit. Unless someone went to Best Buy, found they were sold out and then left.

    That's my opinion.

    Glen
     
  20. Chris Rock

    Chris Rock Supporting Actor

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