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[Nirolak]

As an anecdotal piece of evidence - and I'm doing this from memory so it might be slightly off - Doom was made 40% off on Steam about 4-6 weeks after it launched, and it went from around 300,000 copies sold to around the 900K-1 million range pretty quickly.

It also ended up around 1.4 million by the end of the year with a $30 Fall sale and I believe a $20 winter sale, and is at 2.4 million today having kept being aggressive in price cuts.

This type of pricing is notably rarer on Steam these days, especially from big publishers, which is why I mention it.

Anyway, here's the image: https://www.npd.com/lps/pdf/EEDAR-DigitalStorefrontInfographic.pdf

 

[rtcn63]

is dis cost accounting

 

[Toki767]

Does this mean PSN's monthly Flash Sale strategy works really well?

 

[Nirolak]

Does this mean PSN's monthly Flash Sale strategy works really well?

If they're cutting prices low enough.

 

[Marcel]

So ultimately PSN is a better place to market your game promotions since they allow for more exposure on the digital store?

 

[Maintenance]

Meanwhile, at Nintendo.

 

[KawabataSan]

this is why the 'solution' of make games cost $100 will never work

no one wants to pay that much even if they say they will

 

[Marcel]

Meanwhile, at Nintendo.

Switch versions of game are selling like mad regardless of the Eshop having next to no features.

this is why the 'solution' of make games cost $100 will never work

no one wants to pay that much even if they say they will

The people saying that clearly have no knowledge of how marketplaces work. They're not even worth listening to.

 

[almostjuliuscaesar]

this is why the 'solution' of make games cost $100 will never work

no one wants to pay that much even if they say they will

Tons of people buy games on launch day/week. That's where a bulk of sales happen. So they'd still get tons of sales at higher price points as well as the same post launch discount sales

 

[Floody]

Sony's new sales every 2 weeks strategy has made me buy soo many games I didn't plan to. So it's working on me I guess.
Their Deal of The Week I usually skip though, even if they are a lot of the time good deals.

 

[JaggedSac]

this is why the 'solution' of make games cost $100 will never work

no one wants to pay that much even if they say they will

But then they could cut prices 40% and be at $60.

 

[Crankshaft]

Yeah I'd sat ps4 storefront does a better promoting than the xbx store. Microsoft should work on that.

 

[Nirolak]

Tons of people buy guys on launch day/week. That's where a bulk of sales happen. So they'd still get tons of sales at higher price points as well as the same post launch discount sales

They already do price discrimination via special editions and season passes. Like Destiny 2's most pre-ordered edition was the $100 edition with the DLC.

 

[Marcel]

They already do price discrimination via special editions and season passes. Like Destiny 2's most pre-ordered edition was the $100 edition with the DLC.

Destiny is a special case isn't it? The structure of that game makes it so you almost have to have the DLC/expansions to make meaningful progression. Didn't not having the Taken King in the original game lock you out of certain activities?

 

[CSX]

Basically matches my buying tendencies.

If I'm very interested in a game, i would have already preordered it and get the 20% discount via Amazon or GCU.

Otherwise, I'm not even considering buying it till it gets a big discount whether it's retail or digital.

 

[Deleted member 284]

Meanwhile, at Nintendo.

They don't do this, as they don't really DLC like the rest of the industry. Also, when Nintendo drops AAA games like Mario/Zelda etc, they don't sell 300K. They sell ~1 million. Doom (as awesome as it is), had provide heavy discounts to get to similar numbers. I don't get why Nintendo was singled out here.

 

[Nirolak]

Destiny is a special case isn't it? The structure of that game makes it so you almost have to have the DLC/expansions to make meaningful progression. Didn't not having the Taken King in the original game lock you out of certain activities?

Kind of. But like... the whole point of special editions and DLC and microtransactions is to allow people who can spend more to spend more money while also making your game accessible to others who could never afford that much. It's why the price hasn't changed, since it helps maximize revenue.

Similarly they will cut the price on the base game a lot to gets lots of players in the door and then let them spend in little chunks later, which helps given most people live paycheck to paycheck and can't afford a lot at once.

 

[ElBoxyBrown]

They don't do this, as they don't really DLC like the rest of the industry. Also, when Nintendo drops AAA games like Mario/Zelda etc, they don't sell 300K. They sell ~1 million. Doom (as awesome as it is), had provide heavy discounts to get to similar numbers. I don't get why Nintendo was singled out here.

Nintendo is heavily advertising DLC for BOTW.

 

[Marcel]

Kind of. But like... the whole point of special editions and DLC and microtransactions is to allow people who can spend more to spend more money while also making your game accessible to others who could never afford that much. It's why the price hasn't changed, since it helps maximize revenue.

Similarly they will cut the price on the base game a lot to gets lots of players in the door and then let them spend in little chunks later, which helps given most people live paycheck to paycheck and can't afford a lot at once.

Yeah this type of monetization in games is very much like a type of social insurance for the game industry. That's a fair comparison if that was your intention.

 

[ProBusinessgamer]

For substance id give this a D, there are way to many variables not listed or specified. This simple graphic lacks substance, makes you wonder.... hence the questions in the thread. Another big one is the lack of digital reporting from MS/Sony makes me wonder how accurate the data is for there respective store fronts.

 

[Kolx]

Switch versions of game are selling like mad regardless of the Eshop having next to no features.

Few examples doesn't mean all of the store is selling like mad let alone the fact the console is still new and not saturated with games like the PS4.

 

[DriftingSpirit]

Switch versions of game are selling like mad regardless of the Eshop having next to no features.

The people saying that clearly have no knowledge of how marketplaces work. They're not even worth listening to.

They don't do this, as they don't really DLC like the rest of the industry. Also, when Nintendo drops AAA games like Mario/Zelda etc, they don't sell 300K. They sell ~1 million. Doom (as awesome as it is), had provide heavy discounts to get to similar numbers. I don't get why Nintendo was singled out here.

There is still much room for improvement regarding their sales.

 

[Audioboxer]

Can confirm, 90% discount works well.

 

[Marcel]

Few examples doesn't all of the store is selling like mad let alone the fact the console is still new and not saturated with games like the PS4.

Many indies and AA developers are reporting positive numbers with their Switch versions, sometimes outselling PS4/XB1 versions, so it's attracting even developers like inXile who were critical of the platform.

 

[jkanownik]

Unfortunately these types of analyses never separate awareness/impressions from conversion. If a title like Doom has low awareness and low organic views on the store, then the prominent placement would have a much larger impact than it does on a title with higher awareness.

Just showing the revenue is hiding the underlying math:

Base Impressions x Impressions Lift x Base Conversion Rate x Conversion Lift = Unit Sales
Units Sales x (Base Price - Discount) = Revenue

Is the lift from increased conversion or increased impressions?

We also don't see if the revenue lift scales linearly with volume or not. Generalizing this creates an implicit assumption that it is linear.

 

[RichiRamjag]

Yeah I'd sat ps4 storefront does a better promoting than the xbx store. Microsoft should work on that.

Too busy shoving everything else in your face. I like the XB OS well enough, but I’m not a fan of their storefront. Ive typed in the exact name of some games and had movies and shit populate instead. I’ve just started using the web page for that now.

 

[ElBoxyBrown]

Too busy shoving everything else in your face. I like the XB OS well enough, but I’m not a fan of their storefront. Ive typed in the exact name of some games and had movies and shit populate instead. I’ve just started using the web page for that now.

Just switch the search to "games".

 

[RichiRamjag]

Just switch the search to "games".

That usually works, I can’t remember what I was looking up that day, but I just could not get it to generate. It showed up blank rather than display the game. The site and the app works for me though, so I just switch to that. Really dig the overall functionality of that app though.

 

[jaybe00]

I used to do promotional analytics consulting for a market research firm. This is just completely stupid to make a blanket statement like that. Driving units at a much lower price doesn't equal profit, and takes a future buyer out of the market. See GTA 5 for a good example of retaining sales and profit value from each sale years later without massive discounts. First drop should be closer to 20 - 25% to be attention getting without throwing away potential revenue and profit. Even 10 - 15 to test the waters. Once a new floor is established, that will always be the comparison for consumers.

 

[Renna Hazel]

Nintendo is heavily advertising DLC for BOTW.

Which is probably over 6 million sold at full price, and still selling very well. Nintendo doesn't need to cut their prices. I wouldn't mind if they did, but this obviously doesn't apply to them.

 

[Jeronimo Jones]

They don't do this, as they don't really DLC like the rest of the industry. Also, when Nintendo drops AAA games like Mario/Zelda etc, they don't sell 300K. They sell ~1 million. Doom (as awesome as it is), had provide heavy discounts to get to similar numbers. I don't get why Nintendo was singled out here.

Probably because customers' POV is generally to prefer discount prices and not be concerned about sales performance.

 

[Slayven]

guess that explains why DLC never goes on sale

 

[Donniewahlberg]

A lot of my reservations about buying digitally often concern price disparity so 40% sounds about right. A lot of the major games pop up on PSN at £55. I buy a game physically at launch for £37 usually so even with a £20 discount digitally,it's hardly worth putting my hand in my pocket over. 40% minimum and over time as physically drops,even higher.

 

[Deleted member 284]

Probably because customers prefer discount prices and are not as concerned about sales performance.

They are concerned about really good games made from Nintendo, so it's clear this preference of discount prices doesn't really apply to AAA Nintendo titles.
Edit: See Call Of Duty games prior to IW.

 

[Rymuth]

Meanwhile, at Nintendo.

They added a Games on Sale tab on the Switch Store. Who knows, perhaps this is the gen where Nintendo finally sorts out their digital offerings.

 

[Some Nobody]

For someone not operating at a high income level just yet, $60 is too steep a price tag. There are a lot of games I'd like to give a try but just don't feel is worth $60 to me personally, so I jump on sales of games at $20 and $30. It's got nothing to do with whether or not the game is good--I'm just broke and if I don't think I can dump dozens of hours into it over the course of a month, I can't justify spending money on it.

I'm sure there are people that look at it the same way, even if they make more money than I do.

 

[Chû Totoro]

• People don't want to pay 60$
• People noticed that even big AAA games selling a lot are pretty fast 10-20$ less
• People wait for a big discount

Surprise ! Sales after price cut are high.


For me people are not dumb... they saw that games were sold for less a few months if not weeks later so now they wait.

That's why Black Friday and Christmas are making the big part of some products' sales even if these are available since many months.

 

[Jeronimo Jones]

They are concerned about really good games made from Nintendo, so it's clear this preference of discount prices doesn't really apply to AAA Nintendo titles.

Actually, that only shows that when there is no alternative some customers will buy at the asking price.

 

[Chris1]

Makes sense there's far too many options available these days it's easy to wait for a discount. Around half off seems the correct amount too because it's easy to view it as "well I'm getting two games for basically the price of a brand new one" whereas 10-30% kinda leaves you with "meh you're not saving that much"


I don't think it has anything to do with not paying $60. If games were $100 I don't think this study would be much different even though the 40% off price is $60. It's more to do with the fact you're saving money rather than the amount I think

 

[DeuceGamer]

Actually, that only shows that when there is no alternative some customers will buy at the asking price.

I feel like I'm conditioned to wait for price drops on games from certain publishers. I know if I wait a month or two I will be able to get the game at a significant discount.

In Nintendo's case, I feel more comfortable buying a game day one as it won't have a deep price cut in a month or two. I know some don't like that, but I think it just shows the approaches of different publishers.

 

[night814]

• People don't want to pay 60$
• People noticed that even big AAA games selling a lot are pretty fast 10-20$ less
• People wait for a big discount

This is big, last gen I was a late adopter to PS3/360 and the first two years worth of games were super discounted by the time I went after them and the same is true for this year when I finall got a PS4. You get rewarded for waiting in a huge way if you don't want to be there day one.

 

[Jeronimo Jones]

I feel like I'm conditioned to wait for price drops on games from certain publishers. I know if I wait a month or two I will be able to get the game at a significant discount.

In Nintendo's case, I feel more comfortable buying a game day one as it won't have a deep price cut in a month or two. I know some don't like that, but I think it just shows the approaches of different publishers.

Oh, I get it and I often wait myself.
But surely you'd prefer to have discounts on the Nintendo games you don't pick up immediately vs paying full price 6 months later?

 

[Deleted member 284]

Actually, that only shows that when there is no alternative some customers will buy at the asking price.

There is always an alternative to Nintendo games. I think we can agree that the percentage of Switch owners that don't own another gaming system/PC isn't overwhelming. Money doesn't have to be spent on Nintendo systems or gaming at all. But people made the choice to purchase Zelda/MK8D/Splatoon 2 without discount. The same cant be said for some of the AAA games that NPD identifies in the info-graphic. And this is due to the culture of how Nintendo prices their titles. Like it or not, retailers/Nintendo don't offer large discounts within 2-3 months at launch (unless your name is Other M). They didn't do it when they were in a less than optimal market position (Wii U, GameCube, N64) and they damn sure don't need to do that now.

Edit:

Oh, I get it and I often wait myself.
But surely you'd prefer to have discounts on the Nintendo games you don't pick up immediately vs paying full price 6 months later?

As a consumer I would love that. But also as a consumer, I've been rarely burned by purchasing a Nintendo title at full price 6-8 months after launch. (again: hi Other M)

 

[kswiston]

Switch versions of game are selling like mad regardless of the Eshop having next to no features.

Switch is new and popular, and therefore it's easier to get a smash hit in its digital library for the time being.

We'll see how things look by the end of next year, when retail releases are in full swing, and new owners have a ton of amazing software (both retail and digital) to choose from.

It's easier to get noticed when there are 5-10 must have games on a system than it is when there are over 100.

 

[kunonabi]

I pretty much dont buy anything on Playstation platforms unless they're at least 60% off on the store. Im a little behind on releases but not by much and I've saved a ton of money.

 

[Jeronimo Jones]

There is always an alternative to Nintendo games. I think we can agree that the percentage of Switch owners that don't own another gaming system/PC isn't overwhelming. Money doesn't have to be spent on Nintendo systems or gaming at all. But people made the choice to purchase Zelda/MK8D/Splatoon 2 without discount. The same cant be said for some of the AAA games that NPD identifies in the info-graphic. And this is due to the culture of how Nintendo prices their titles. Like it or not, retailers/Nintendo don't offer large discounts within 2-3 months at launch (unless your name is Other M). They didn't do it when they were in a less than optimal market position (Wii U, GameCube, N64) and they damn sure don't need to do that now.

The earlier poster pointed out Nintendo's relative lack of discounts in the eshop in their post. They are correct.

Nobody asked about why Nintendo is in position to keep their prices at original levels because it's not hard to understand why:
-If you want Nintendo characters/franchises/Nintendo "magic" there is no actual alternative

 

[Some Nobody]

There is always an alternative to Nintendo games. I think we can agree that the percentage of Switch owners that don't own another gaming system/PC isn't overwhelming. Money doesn't have to be spent on Nintendo systems or gaming at all. But people made the choice to purchase Zelda/MK8D/Splatoon 2 without discount. The same cant be said for some of the AAA games that NPD identifies in the info-graphic. And this is due to the culture of how Nintendo prices their titles. Like it or not, retailers/Nintendo don't offer large discounts within 2-3 months at launch (unless your name is Other M). They didn't do it when they were in a less than optimal market position (Wii U, GameCube, N64) and they damn sure don't need to do that now.

Edit:


As a consumer I would love that. But also as a consumer, I've been rarely burned by purchasing a Nintendo title at full price 6-8 months after launch. (again: hi Other M)

Strangely enough, Nintendo is one of the first people I think of when I think of games I wish would discount quickly. I'm a big fan of open-world titles and RPGs, and anything else I'm guaranteed to play 1 or 2 weeks at best, 3 weeks at most. As such, games like Mario Kart 8 or Mario Odyssey look appealing, but at $60 it'll never be worth the money I'm spending.

 

[wapplew]

• People don't want to pay 60$
• People noticed that even big AAA games selling a lot are pretty fast 10-20$ less
• People wait for a big discount

Surprise ! Sales after price cut are high.


For me people are not dumb... they saw that games were sold for less a few months if not weeks later so now they wait.

That's why Black Friday and Christmas are making the big part of some products' sales even if these are available since many months.

And gamers hate publisher for all in GaaS mode.

 

[Yekshemesh]

Those PSN sales are a Trojan horse for me going mainly digital this gen.

 

[Some Nobody]

And gamers hate publisher for all in GaaS mode.

Well. Yeah. Bottom line, gaming is one of the most expensive mainstream hobbies. People are going to try and cut corners.

But trying to make your money back with lootboxes isn't the way.