CrazedScotsman Posted February 28, 2012 Share Posted February 28, 2012 You people are actually arguing over this? To put it simply, BioWare/EA didn't drop the price of the game, Amazon.com dropped the price so they can get you to their site. It's a popular game and selling well so they drop the price to get you to buy from them. After you decide to buy from them, you will notice that before you finish all the stuff for them to ship it, there are advertisements for other things that you may like to buy as well to go with the game. Things like a mouse or keyboard, strategy guild if there is one out, how about buying all 6 movies or an action figure. Hey, maybe you need memory or a graphics card to boost performance. It really is amazing the length that both fanboys and haters go to arguing over their favorite video game. I can understand when arguing over politics or religion, but a video game? Link to comment Share on other sites More sharing options...
CeruleanNite Posted February 28, 2012 Share Posted February 28, 2012 (edited) Oh no the game price dropped! The sky must be falling! Everyone get your tin-foil hats and hide under the stairs! Edited February 28, 2012 by CeruleanNite Link to comment Share on other sites More sharing options...
MackumDog Posted February 28, 2012 Share Posted February 28, 2012 http://www.amazon.com/gp/goldbox I didn't expect it to drop this fast...even if for 24 hours. I could explain this in detail to you ...but I forgot my glove puppets and crayons. Link to comment Share on other sites More sharing options...
JerokTalram Posted February 28, 2012 Share Posted February 28, 2012 (edited) None of this applies to the side discussion at hand (I say "side discussion", because I explicitly said in the preamble of my post that I have no interest in what this sale means in terms of the game): The argument was that a well selling item should have its price lowered, ceteris paribus, as a general economically sound idea, not as part of a larger marketing strategy, or in order to increase subscription income. This is the idea that Meldwyn and I were arguing against. I understand that it might be valuable to give the game away at a loss in order to make income from subscriptions, but if someone said "you should give property away at $0, learn economics people", I would argue against this as a general economic principle, which is what it was presented as. There are reasons to lower the price of a well selling product. (No necessarily relievent to SWTOR) Increased production results in strain on the warehousing of product. It costs money to store product and it could be cheaper to lower the cost and increase sales than increase warehouse space. You believe you can get even more sales. Increased Sales could require increased production. Per unit production costs tend down as production goes up. Generally speaking, the more units you make the lower the production costs. Now that's pretty simplistic as it doesn't account for your infrastructure's production capabilities. Competion offers a similar product at reduced rate. Some times you have to lower your price to compete. Though you may wait for a bit to make sure that your sales are actually slowing due to the competion. Your quality, name and reputation may be enough to sustain a higher price. Lost Leader - You sell something at a reduced rate to bring people into your store or to your site in hopes they will buy more stuff sold at a good margin. Temporary sale, like Amazon's. I'm going to call this a volume sale. It's black friday and you want to have big numbers. You sell off surplus stuff at really low prices possibly even a loss. You sell other stuff in the store at a low margin. Some stuff maybe you don't mark down. Your hope with this type of sales is to do a ton of business. It's all about the volume. If you sell enough you make good money. If you don't you lose. Last reason I can think of to lower a price. Shelf life. If your product has a shelf life, you want to sell if before that expires. I'm sure that SWTOR Boxed set, will have a shelf life. What that might be I have no idea, maybe even BW doesn't know for sure but when that date comes the price will drop. Edited February 28, 2012 by JerokTalram Link to comment Share on other sites More sharing options...
Roodys Posted February 28, 2012 Share Posted February 28, 2012 BW has no say when it comes to store prices people. Link to comment Share on other sites More sharing options...
ThiborF Posted February 28, 2012 Share Posted February 28, 2012 LOL, fanboys think of anything these days! To the rest of us, it's all about supply and demand. Game like Skyrim is STILL selling for 60 bucks, why? Cause the game is still selling at a good clip, no one skilled in economics is gonna drop the price when the game is still selling at a reasonable amount monthly. TOR is dropping quick. Next month you may find it in the 5 dollar bargain bin at Walmart. Really? So by your logic then, because several places (not just 1 like this Amazon sale) offered Skyrim for $39.99 the week or two before Christmas that by now we should have been seeing it in the bargain basement sales right? RIGHT? People arguing on game forums are like analysts with statistics ... tell me the answer you want to prove your point and I'll show how the math/numbers work to prove it. Walmat? $60 Best Buy? $60 Gamestop? $60 Sears? $60 Toys R Us? $60 TigerDirect? $60 NewEgg? $50 Yeah ... I see a trend. But, if you don't want to educate yourselves with information that other posters linked like the video explaining Amazon's sales ideas, please continue with your ignorance. After all, everyone should have somebody to point a finger and laugh at. Link to comment Share on other sites More sharing options...
thegimble Posted February 28, 2012 Share Posted February 28, 2012 Things that go in their Gold Box are items that are selling well and can afford to set it at a lower price. Learn economics people. No. Items that sell well and keep on selling keeps a high price you do not need to put it on sale as as lose leader to generate income. Why would any company lose $10 per item if it is still selling well and keep the $10 for itself. Gaming wise if a game goes on sale on a major trader like Amazon, gamestop etc means its coming down in price and they are shipping as many as possible before it drops further by creating a discount which is higher than its price will be in 2 months. Link to comment Share on other sites More sharing options...
Canuck_TwnTNN Posted February 28, 2012 Share Posted February 28, 2012 COOL! New players to play with. Cheers! More_Is_Better_Canuck Link to comment Share on other sites More sharing options...
flyersfan Posted February 28, 2012 Share Posted February 28, 2012 Different model all together! No it's not. BioWare wants to sell the subscription, not the game. Also, BioWare isn't setting this price. Amazon is. Link to comment Share on other sites More sharing options...
flyersfan Posted February 28, 2012 Share Posted February 28, 2012 Online retail outlets regularly sell high demand items at sale prices. It's a fundamental part of the business model. Amazon gave me a $20 credit for pre-ordering ME2. I got a brand new game and on launch day for $40, and it's one of the best games I've ever played. Amazon puts everything on sale. Link to comment Share on other sites More sharing options...
corbanite Posted February 28, 2012 Share Posted February 28, 2012 (edited) No. Items that sell well and keep on selling keeps a high price you do not need to put it on sale as as lose leader to generate income. Why would any company lose $10 per item if it is still selling well and keep the $10 for itself. Gaming wise if a game goes on sale on a major trader like Amazon, gamestop etc means its coming down in price and they are shipping as many as possible before it drops further by creating a discount which is higher than its price will be in 2 months. so why did amazon reduce this then? http://www.amazon.com/Best-Sellers-Video-Games-PC-Hardware/zgbs/videogames/229575 surely they would never put on sale their top selling game Edited February 28, 2012 by corbanite Link to comment Share on other sites More sharing options...
Telka_Tetra Posted February 28, 2012 Share Posted February 28, 2012 I saw that McDonalds was having a sale the other day on Hamburgers....must mean they are going out of business and everyone hates their hamburgers. This made me laugh so hard at work people were looking at me funny. Link to comment Share on other sites More sharing options...
Vecke Posted February 28, 2012 Share Posted February 28, 2012 Amazon gave me a $20 credit for pre-ordering ME2. I got a brand new game and on launch day for $40, and it's one of the best games I've ever played. Amazon puts everything on sale. Right. This thread is really a no-brainer and one of those few thread debates that is empirically provable (as many have on this thread). Retailers (online and physical) regularly put high selling items on sale for a number of reasons. This happens. High selling items are put on sale regularly by retailers. It does not suggest a game is doing well and it does not suggest a game is doing poorly. Link to comment Share on other sites More sharing options...
Giondi Posted February 28, 2012 Share Posted February 28, 2012 If you aren't hitting your sales projections, then by all means, discount it to try and draw business in and boost sales (more sales, lower prices, still possible to hit sales goals). But if I am hitting my sales projections, then there is absolutely no reason to discount my product. Would be very silly to leave money on the table that consumers are willing to spend. Except it's a one day sale. By your logic, every Memorial Day, President's Day and Black Friday, every business in America simultaneously starts to go under and needs an emergency liquidation to stay afloat. Also, BioWare and EA didn't lower their pricing of the game, Amazon lowered what they're charging for it, as they do frequently with popular items. They do this to get traffic on the site because if you go to a website to purchase something, it's likely that you buy other things there, too. Link to comment Share on other sites More sharing options...
Knockerz Posted February 28, 2012 Share Posted February 28, 2012 NOOOO, I should have waited before buying that second swtor. Link to comment Share on other sites More sharing options...
Kubernetic Posted February 28, 2012 Share Posted February 28, 2012 I saw that McDonalds was having a sale the other day on Hamburgers....must mean they are going out of business and everyone hates their hamburgers. I LOLed. Link to comment Share on other sites More sharing options...
reaperkeepet Posted February 28, 2012 Share Posted February 28, 2012 I LOLed. They are also going to something with oats, apples, and raisins.... >.> <.< OMG oatmeal clone! Link to comment Share on other sites More sharing options...
grandmthethird Posted February 28, 2012 Share Posted February 28, 2012 i bought my ipod touch version 4 at a reduced price. i never thought this ment apple was dying you live and you learn Link to comment Share on other sites More sharing options...
Lamech Posted February 28, 2012 Share Posted February 28, 2012 Okay, let me get this straight Mr. Economics... My product is selling really well for $50.00, so, I decide to put it on sale for $40.00? How does that make any sense at all? Why would I sell something for less than what people are willing to pay? Um... sales are usually associated with clearing stock, trying to move items that aren't selling at regular prices. Have you ever worked retail? any job? Product is selling well at multiple retailers for $50. I put it on sale for $40 dollars to cut out my competition, increasing my sales and my profits. Have you ever worked retail? any job? [/Quote] Link to comment Share on other sites More sharing options...
SillyTurtle Posted February 28, 2012 Share Posted February 28, 2012 (edited) HOW is there 8 pages for this topic!? It's called a sale. Anything and everything will go on sale somewhere. Have you people not lived until yesterday...? Edited February 28, 2012 by SillyTurtle Link to comment Share on other sites More sharing options...
Lamech Posted February 28, 2012 Share Posted February 28, 2012 No. Items that sell well and keep on selling keeps a high price you do not need to put it on sale as as lose leader to generate income. Why would any company lose $10 per item if it is still selling well and keep the $10 for itself. Gaming wise if a game goes on sale on a major trader like Amazon, gamestop etc means its coming down in price and they are shipping as many as possible before it drops further by creating a discount which is higher than its price will be in 2 months. Erm... a loss leader is when something is priced below cost. Hence the loss part. The idea being people will buy other items. A small discount is not a loss. I saw Call of Duty with discount prices ON RELEASE DAY. Why? To increase profits by selling more. That blumming game didn't die (I probably do wish it would though) Amazon's main sales strategy has always been discounts. It's philosphy being increased sales to create greater profits rather than small sales with large profit margins. Try being an Amazon seller. Discounts every flamibng where. Link to comment Share on other sites More sharing options...
Lamech Posted February 28, 2012 Share Posted February 28, 2012 People look up loss leader. Seriously http://en.wikipedia.org/wiki/Loss_leader Thank you for that. I was starting to get a twitch in my eye. Link to comment Share on other sites More sharing options...
PostalTwinkie Posted February 28, 2012 Share Posted February 28, 2012 So when Newegg puts something on their daily Shell Shocker the product is failing? Odd.... Link to comment Share on other sites More sharing options...
Kourage Posted February 28, 2012 Share Posted February 28, 2012 It's a sale, not a price drop. learn he difference kids. Link to comment Share on other sites More sharing options...
Qoojo Posted February 28, 2012 Share Posted February 28, 2012 So I suppose every sale will get its own thread for the next few months. Link to comment Share on other sites More sharing options...
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