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Forums - Sales - Sony relying on heavily bundled and/or deep discount just to get games into million sellers list?

happydolphin said:
JayWood2010 said:

So which is better selling one game or multiple games and accessories?  That is what it comes down to.  What is more important, selling your 1st party game or cutting into its profits and maximizing all software and hardware.

Yes if we took away bundles then certain games would have far less copies sold.  I mean GT5 has probably sold well over 1 million copies in bundles but we need to look at the attatch  rate for each console.  How many games are sold per each console, and how much hardware are sold at each consoles.  Exclusives is a business strategy.  They are used to say "hey buy our console because we are the only ones who have it"  Once you buy the console for that game Im sure you will look for more afterwards.  Bundles are an investment if anything. They may be losing  money on one game but accessories and other software will gain them profits.

I'd say bold.

I completely agree that they are an investment, I think the question in the end that OP was trying to ask (among other things >.>) was, are Sony selling their properties short by bundling them.

Here is an analogy from the auto world. We know that Mercedes are great cars, and they're made with quality labor and parts. Sure. But Mercedes set the market price of their cars, and that's what people pay. They could set the price lower, would people still buy it? Would it affect the perceived value of the product.

 I'm not saying Sony is doing that, I'm just asking the question, and it seems OP was also indirectly asking that, especially given the mention of rebate prices.

I agree that the title is a little odd "to get games into million sellers list" is no companies business, I wouldn't think. Companies are always after the bottomline (e.g. profit). But I think it's a fair question to ask, is Sony underselling its games by selling at a lower value than what they're worth?

Then you have the whole question of Supply and demand, and if you offer a product at a more affordable price, you will have more supply and more sales, but you may also decrease the deman for your product by trimming off its perceived value.


Ok, so  if I read this correct you are saying they bundle games too soon rather than let them stay on the market for a few years?  If that is the case then I don't know.  Maybe they should maximize profits from those games before bundleing them.  That would make the most sense so I do agree with you on that.  Some games will bundle during releases to sell consoles though like Halo 4, Gears of War, and Final Fantasy.  I find this to be ok though because these are big games and they also amp up the price on these consoles. They just put more memory in it to make it seem like a better deal but in reality that memory is pretty cheap.

I guess I understand your point and you are probably right that they should try maximizing a games profits before making bundles.  




       

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Oh my god at this thread.



JayWood2010 said:

Ok, so  if I read this correct you are saying they bundle games too soon rather than let them stay on the market for a few years?  If that is the case then I don't know.  Maybe they should maximize profits from those games before bundleing them.  That would make the most sense so I do agree with you on that.  Some games will bundle during releases to sell consoles though like Halo 4, Gears of War, and Final Fantasy.  I find this to be ok though because these are big games and they also amp up the price on these consoles. They just put more memory in it to make it seem like a better deal but in reality that memory is pretty cheap.

I guess I understand your point and you are probably right that they should try maximizing a games profits before making bundles.  

Exactly. Prof was saying Sony have analysts to do this for them, well I wanted to talk about it since OP made the thread for it, and we're a video game sales site. That's the kind of thing we talk about.

The question then becomes, has Sony properly maximized its profits without affecting the perceived value of their IPs and games. For that, we would need to look into some sales trends (which I tried to do), but it would be difficult without having a prior gen to compare to for those same games, and also the sales conditions between two gens fluctuate (leading platform, economic situation and readiness to purchase games, genre interest variation, and so many more). I guess sometimes we ask to discover the impossible with sales numbers, but it's worth at least exploring.



JayWood2010 said:
happydolphin said:
JayWood2010 said:

I'm going to point you away from him for a moment.  You want to have a reasonable discussion then discuss it with me.  I think why a lot of people are upset with this thread is because it is directed at sony.  You need to remember that most users on this site are sony fans so they will defend it.  The title its self seems to be geared towards getting people in here to argue rather than have a good discussion.  

With that said all three companies do bundle a lot.  In fact I'd say probably every single exclusive that  has sold more than 1 million has been bundled at 1 point in time.  Some game get bundled more than others but it is a business strategy to get people to buy consoles and then buy more software.  If they like the bundled game they will also buy previous or future installments correct?  

So with all that said what is the argument we are having?  maybe I'm not getting it but I don't see how bundles is relying on selling game over 1 million.  Do you think sony, nintendo, or miscrosoft cares how many copies they sell?  They care about profits and that is what they are trying to do, to gain profits with new customers.

As an example, let's look at the idea of selling more further down the road with say, a sequel (like you said).

Typically sequels tend to sell less than their predecessors, a prime example is Super Mario bros., where sequels have always sold less. Of course Mario helped push the NES, but unless the profit was factored into the console's price, the profit opportunity of Mario is lost in the bundle in one form or another. True that it pushes units, but what if the game had the potential to yield more profit if non-bundled? That's what I think OP is asking. It could be wrong, it could be right, but it's defo open for debate.

Yeah, I understand that bundling helps push consoles or accessories, which then help push titles, so the ultimate question is did the benefit outweight the cost (lost profit opportunity on the title).

So which is better selling one game or multiple games and accessories?  That is what it comes down to.  What is more important, selling your 1st party game or cutting into its profits and maximizing all software and hardware.

Yes if we took away bundles then certain games would have far less copies sold.  I mean GT5 has probably sold well over 1 million copies in bundles but we need to look at the attatch  rate for each console.  How many games are sold per each console, and how much hardware are sold at each consoles.  Exclusives is a business strategy.  They are used to say "hey buy our console because we are the only ones who have it"  Once you buy the console for that game Im sure you will look for more afterwards.  Bundles are an investment if anything. They may be losing  money on one game but accessories and other software will gain them profits.


Your last paragraph says it all. I was kind of tired by the endless discussion of happy and prof, but I think you are summarizing things nicely now. 

And on OT: 

LBP 1 sold around 5 million. According to bundling logic, they sold over 3.5 million in bundles. Ever heard of such amount of bundles?



happydolphin said:
JayWood2010 said:

Ok, so  if I read this correct you are saying they bundle games too soon rather than let them stay on the market for a few years?  If that is the case then I don't know.  Maybe they should maximize profits from those games before bundleing them.  That would make the most sense so I do agree with you on that.  Some games will bundle during releases to sell consoles though like Halo 4, Gears of War, and Final Fantasy.  I find this to be ok though because these are big games and they also amp up the price on these consoles. They just put more memory in it to make it seem like a better deal but in reality that memory is pretty cheap.

I guess I understand your point and you are probably right that they should try maximizing a games profits before making bundles.  

Exactly. Prof was saying Sony have analysts to do this for them, well I wanted to talk about it since OP made the thread for it, and we're a video game sales site. That's the kind of thing we talk about.

The question then becomes, has Sony properly maximized its profits without affecting the perceived value of their IPs and games. For that, we would need to look into some sales trends (which I tried to do), but it would be difficult without having a prior gen to compare to for those same games, and also the sales conditions between two gens fluctuate (leading platform, economic situation and readiness to purchase games, genre interest variation, and so many more). I guess sometimes we ask to discover the impossible with sales numbers, but it's worth at least exploring.

Just tell me. Why Sony, specifically?



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theprof00 said:

Just tell me. Why Sony, specifically?

Why not?

As for Sony specifically, "why?", it seems the question is asked because it would seem like they have a lot of high production value games bundled, and many different AAA game titles bundled. There is a legitimate concern that some of their bundled games may be a lost investment. That's another thing I was interested in looking at. It could very well be false, but it is a first impression idea that would be nice to discard if it is false.



happydolphin said:
JayWood2010 said:

Ok, so  if I read this correct you are saying they bundle games too soon rather than let them stay on the market for a few years?  If that is the case then I don't know.  Maybe they should maximize profits from those games before bundleing them.  That would make the most sense so I do agree with you on that.  Some games will bundle during releases to sell consoles though like Halo 4, Gears of War, and Final Fantasy.  I find this to be ok though because these are big games and they also amp up the price on these consoles. They just put more memory in it to make it seem like a better deal but in reality that memory is pretty cheap.

I guess I understand your point and you are probably right that they should try maximizing a games profits before making bundles.  

Exactly. Prof was saying Sony have analysts to do this for them, well I wanted to talk about it since OP made the thread for it, and we're a video game sales site. That's the kind of thing we talk about.

The question then becomes, has Sony properly maximized its profits without affecting the perceived value of their IPs and games. For that, we would need to look into some sales trends (which I tried to do), but it would be difficult without having a prior gen to compare to for those same games, and also the sales conditions between two gens fluctuate (leading platform, economic situation and readiness to purchase games, genre interest variation, and so many more). I guess sometimes we ask to discover the impossible with sales numbers, but it's worth at least exploring.

Well if you want a good discussion thread about this then you will likely need to make a new thread.  This thread has been ruined because he targeted Sony directly in the title.  Some people don't even read the OP.  Even then he didn't ask it the way you did.  If you want a better discussion with multiple people try making a thread about it with some data backing it up.  You would just need to figure out how soon each game got a bundle to see if what you are saying is correct.  I admit what you are saying does sound correct though, but I don't know sony, ninetendos, or microsoft's bundleing strategy or how soon they bundle.




       

JayWood2010 said:

Well if you want a good discussion thread about this then you will likely need to make a new thread.  This thread has been ruined because he targeted Sony directly in the title.  Some people don't even read the OP.  Even then he didn't ask it the way you did.  If you want a better discussion with multiple people try making a thread about it with some data backing it up.  You would just need to figure out how soon each game got a bundle to see if what you are saying is correct.  I don't know sony, ninetendos, or microsoft's bundleing strategy or how soon they bundle.

I personally didn't see it that way, and I didn't realize people were unable to take the OP as it was and talk about it, looking over the subtle joking that we're familiar with and get on with the topic.

But yeah, that's an idea I'll consider.