Wyrdness said:
Perhaps I should word it better but lets put things in perspective at 10m sold it made 500m in by the end of 2019 at that point it was still around 60 quid it's full price which actually highlights my point on money made on the full price now guess how much revenue is going to be made from 10 quid which is 20% the price, the profit from the game was good but could be so much better this is what he meant in that they're sold at a loss as at 10 quid they lose 80% return per sale compared to what they were getting, it was 19 quid after October 2019. So we know the additional 10m came at the lower bargain bin price point and sold for less than 50% of the original price, for example it would mean they would have made 150m more from 19 quid in comparison to another 500m that could have been made. GOW3 itself cost 44m while GOWA had costs running between 40-60m, GOW 2018 has no direct quote but people estimate at 100m plus and this is before you factor in, marketing, logistics, middle ware licenses, payment of actors etc... Yeah the game made profit with the loss in sales but it's one of their best selling games ever what happens when you get to titles like Days Gone, Death Stranding which don't hit that mark but have similar costs which is the point in business approaches. Now for arguments sake lets look at a game like SMO and say it has the same development costs for the sake of the comparison, at 21m it still would have made substantially more money than GOW as it hit the mark with out dropping to 19 then 10 quid despite the difference in sales being only like 1m. |
Not everything is about profit for the actual game once it has performed already. Reducing the price allowing more people to take the game and be excited builds more anticipation for the sequel. They would be smart to put the first 2 xenoblade games on sale to make the IP bigger and more people to buy it full price once they are actually hooked by the game instead of just ending not playing the games. You want to get into an IP but the 3 games are full priced on Switch, it's hard to get into it and people just decide to move passed it instead. Lowered priced games also allows you to sell more units. There is a big crowd that likes to wait a few years to buy a console and play games many years later for cheap. That is not a possible avenue for the Switch right now which is in it's fifth year.
