Kayoz -> RE: Niche game or undermarketed? (7/23/2013 9:33:44 PM)
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ORIGINAL: whiran Wait, because someone WANTS a game but is unhappy about the price point which is, as a comparative to the rest of the market, remarkably high they are a busybody/troll? Look up the meaning of "locus standi". It seems that you don't understand the term. Yes, Drexy has every right to whinge as much as he wants about the price of DW. He also has the right to whinge about the price of Dominos pizzas, Ferraris and the high cost of skydiving lessons. All those whinges have the same value - none. The whinges benefit nobody and ultimately serve no purpose. As such, I consider it trolling. The only point of the whingeing is to garner attention. I WANT the personal escort service prices of several porn stars to be lower. But for me to post on the forums that they are charging too much is absurd. It's their livelihood - their business - and as such, their choice. If anyone has contact with Nina Hartley, please pass on this request. quote:
ORIGINAL: whiran Is it a bad thing to want a game at a different price point? No. But it's pointless without offering a reasonable remedy for the complaint, such that Matrix will benefit from changing their business model. Drexy completely failed to present any facts to support his argument. quote:
ORIGINAL: whiran Matrix does not believe in treating Distant Worlds as anything other than a niche product positioned exclusively as an expensive game. That's fine because, at this point, the PRICE has become something of a selling feature for the people who get it. A high price is a "selling feature"??? You're saying that I-enjoyed- shelling out for all of DW? You're arguing that potential customers will be attracted by a high price? Please cite your source of this as a legitimate business model. And note, that DW is not a Gucci bag you can dangle on your shoulders to impress friends. Is DW a niche product? As it stands, I'd have to say YES. The gameplay time requirements are too high, the visual candy is too low, and the documentation obscure/non-existent for the learning curve to be surmountable for most players without resorting to forum posts. Erik has hinted that DW2 will address these and make it a more "mainstream" offering - but given the state of the game, I see little reason to disagree with the "niche product" classification. Ultimately, however, it's a question of demographics. How many potential customers are there, how does one market to them and how does pricing affect their buying decisions. Those questions are far more important to how one positions, markets and prices a game than whether or not it is a "niche product". So I put it to you, that Erik has the demographic information on his target customers and you do not. Refute this is you like. quote:
ORIGINAL: whiran I would argue that to reach a larger audience then using Steam, even at the $100 USD price point, is in Matrix's interests. Clearly, they have not come to the same conclusion. They, I have every reason to believe, every reason to want to increase their profits. They have looked into Steam distribution, crunched the numbers, and decided not to pursue it. That they have all the information available to them and you do not, should be a clear indication to anyone which is more likely to be correct. quote:
ORIGINAL: whiran Just because they refuse to accept that gaining access to a marketplace of over 11 million gamers is a good thing doesn't make them right. It`s in their interest to be right. They have the data to determine if such a decision would be "right" for them. Yet your continued argument on this issue seems to indicate that you STILL do not accept their decision - despite them having every reason to make the decision that is most profitable and which will increase their market share. I sincerely hope you don't consider your refusal, to accept their facts-based decision, to be a refusal that any right-minded reader would consider to be "reasonable". quote:
ORIGINAL: whiran No one says that a game going on Steam -has- to be cheap in any way, shape, or form. That, indeed, is the core of Drexy's dispute. The price. It's quite clear from his post that the Steam, the DRM and marketing issues are red herrings. What he wants is clear - he wants DW on the cheap. He went so far as to lump pricing and Steam distribution into the same point in his brief list of complaints. If Matrix were to distribute on Steam and leave their prices unchanged, he would STILL be complaining. quote:
ORIGINAL: whiran Matrix does a terrible job at marketing. That's plain and simple. There's room for improvement, I agree. Much room. But they have improved vastly in the last 2 years, particularly. Hopefully Erik will continue this trend. quote:
ORIGINAL: whiran no one except a very small group of gamers even knows about the title and what it is. That's failure. I disagree. The real question of failure/success is profitability. Not, as you assert, public awareness. quote:
ORIGINAL: whiran The fact that Matrix believes Historicon is their "major" event of the year is laughable. Historicon gets a total of 3500 to 4000 visitors over the course of three days. That's just over 1000 people per day. That includes children. We have events in the City that I live in for "Health and Wellness" that draw in over 15,000 people and the price to be at those events is the same as the ~$400 USD for a 10x10 presence at Historicon. From the site map of Historicon is looked like Matrix had a 5x10 presence tucked away at the side. That's the "major marketing event" for Matrix. And for that event almost all communications were shut down. Don't get me started on the "press releases" as per the news and announcements forum. The ultimate size of the audience is determined by the "reach" of those attending the conference. 3500-4000 might seem a trivial number - but if you consider the number of those who are bloggers or operators of game review sites, the number they can reach is significant. The White House press briefing room is a small and crowded place with only a few dozen people - which in your argument - would make it insignificant compared to the number of viewers of any capable street performer on a weekend afternoon. Spandy Andy's performance is, you would say, more significant than the White House - woo! quote:
ORIGINAL: whiran ...then Amplitude Studios made 3 million dollars from Endless Space. That's all that needs to be said about your ES example. That you believe the full revenue from sales goes into Amplitude's pockets says all that needs to be said about your understanding of business costs and distribution contracts. quote:
ORIGINAL: whiran Has Matrix made 3 million from Distant Worlds? Matrix is privately held and they have never announced sales numbers for Distant Worlds that I could find so I don't know. That's the core problem I have with your position. You do not know. They do. And yet you dispute their business model. You repeatedly, ad nauseum, claim that their decisions are unwise. But you have no information to back up your claim. And that's not addressing your difficulties with costs (no, it's not all profit as you seem to assert). quote:
ORIGINAL: whiran To make 3 million, Matrix would need to sell only 30,000 copies at $100 USD. If such were the case, Code Force would have some very pointed questions for Matrix. You seem to ignore the developer's royalties.... as well as any other costs. quote:
ORIGINAL: whiran So, why not release it to a larger audience? There is no good reason not to. See above, on market demographics. It's a business decision. One made based on the data available to Matrix. Data which Erik has stated, is quite substantial. quote:
ORIGINAL: whiran Just because a game goes to Steam does NOT mean that it has to be "cheap." I don't know how Steam pricing is determined. Their wording is vague and subject to a great deal of interpretation. But as Drexy went to great pains to point out, his disagreement is the price - not the distribution platform. quote:
ORIGINAL: whiran If the game went to Steam at $100 USD, it would sell. If the game went to Steam at $60 USD, it would sell more. If the game went to Steam at $40 USD, it would sell even more. If the game went to Steam at $30 USD, it would sell even more more. Revenue does not equal profit. Matrix is in business to make a profit. They are not in business for revenue. If lower prices do not equal increased profits, then there is no reason for them to lower prices. You have completely failed to realize this. quote:
ORIGINAL: whiran The point of pricing, from a marketing standpoint, is to sell as many copies as one can to make the most money. Profit. Not revenue. Increasing sales volume at the cost of profit, would be called, to use business technical terms, a stupid decision. quote:
ORIGINAL: whiran The "art" in Marketing is figuring out how many people in each price bracket exist and sell to that bracket at its fullest potential before shifting the product to the next pricing bracket. I absolutely agree. And Erik has a great deal of information on which to base that decision. You do not. And yet you continue to assert that you know better. quote:
ORIGINAL: whiran The argument that this is a niche product and complicated and wouldn't sell because of that or that the 'masses wouldn't understand it' is silly to me. I think it's safe to assume that Matrix has done market studies on which to determine DW's appeal. This is silly by your point of view. quote:
ORIGINAL: whiran Personally, I would bundle up the game and its expansions into a single package I believe Erik has stated that this (a "gold" edition) is on the map. quote:
ORIGINAL: whiran Heck, I might even list it at $100 USD and let the PRICE itself sell the product. The amount of "outrage" and buzz generated by that price point would be huge and the publicity would be everywhere. See above, regarding my request for a source to support your assertion that high pricing increases sales. Paula Deen, by your argument, should be on the marketing gravy train for life. Strangely enough, she does not seem to be happy with all the attention she is getting. Mysterious, isn't it? quote:
ORIGINAL: whiran ... no idea how to move into a new market. ... they fail miserably at doing so. I'm looking at you Alpha Centauri 2 (Pandora: First Contact). Heck, that particular game has all the hallmarks of being vapourware even though it is, apparently, not - the lack of communication about it is that lacking. I would argue that strategy gaming is older, by far, than "action" gaming. How old is chess? It's new, by your statement. Pandora is in beta. Hyping it at this point would be premature. But suggesting it will fill the boots of SMAC is, I believe, overly hopeful. quote:
ORIGINAL: whiran Now, even at that price point I am not that interested anymore - because of how Matrix behaves and mishandles their catalog of games. So it's not the price. It's not the distribution. Your decision not to purchase DW was based on ... their marketing practices? You are very confusing. You repeatedly assert that price is the major issue. And then state that, for you, it is not. Whaaaaattt? quote:
ORIGINAL: whiran ...their games will never make it huge. I suppose that isn't the goal anyway. Erik has been very clear on this. It is his goal. You suppose wrongly. quote:
ORIGINAL: whiran So long as the games continue to iterate at a regular pace and cater to a small, but appreciative audience, job well done right? Wrong. I would guess that Erik would be gnashing his teeth if he reads this. I'm quite sure he'd love to make millions of sales and dominate the market. I'm quite sure he'd love to fill his bath with MONEY and eat cakes decorated with candles of burning MONEY, carried by scantily clad women (or men - Erik's preference being unknown) garbed in bikinis made of MONEY. Your position, that such is not his goal, is absurd.
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