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$39.99???


Liamo

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Well you've managed it guys: this right here is officially the stupidest thread I've ever read. Don't make any attempt to understand the principle of loss leader promotions. Completely avoid the obvious conclusion that EA won't make any less money from this promotion (and that, given the subscription model, they'll obviously make more) because Amazon have already bought the discs from them. Ignore the fact that it's one retailer doing an offer for one day, and generally run around the place, proudly showing off your total ignorance, and acting like it's sage wisdom.

 

Everything I agree with apart from one thing.

 

This is not a loss leader promotion. It's just a discount. There is a still a decent profit margin even on this sale.

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the deal right now is adobe photoshop for 90 dollar.... just saying

 

 

 

btw: amazon.de still sells the game for 45€, so I guess in the US the game is failing and Europe loves it

 

the CE is even 10€ more expensive than the original price :/

 

 

logic from this topic

 

Adobe must be going out of business!!!!!!!!!!!1111

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Think I may go pick up a second copy and force the GF to play an MMO

 

Problem 1: We need another tank for our guild

Problem 2: One of your new guildies girlfriends does not play swtor

 

The solution to both problems is obvious.

 

The time to solve this problem is now with this deal

Edited by corbanite
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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.

 

Actually supply and demand is contrary to what youre saying. The more popular the game is, the longer it should stay at full price. That is why every game in the world drops its price as it gets older, and less popular. That is economics.

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Actually supply and demand is contrary to what youre saying. The more popular the game is, the longer it should stay at full price. That is why every game in the world drops its price as it gets older, and less popular. That is economics.

 

Gold box deals are 1 day deals. They're popular items.

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Holy crap these hot cakes are selling like hot cakes!

 

You will sell 10 hot cakes for 5 dollars each, and make $50

 

so...

 

I will sell 15 hot cakes for 4 dollars each, and make $60

 

Now I have $60, and you have $50.

 

Sure was smart of me to have a sale today. Good thing that the hot cakes were selling like hot cakes!

 

And to think, I figured that out on a high-school edumication!

 

Having worked retail, sales have nothing to do with how well something is unless it is a Clearance Sale. Either that, or black friday is the biggest scam in all of histor... oh wait... that's a loaded question. ;)

Edited by origamikitsune
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Actually supply and demand is contrary to what youre saying. The more popular the game is, the longer it should stay at full price. That is why every game in the world drops its price as it gets older, and less popular. That is economics.

 

Some people just don’t understand how 1 day deals work...

 

Ever hear of black Friday?

 

Do they sale ONLY low demand items for that day? OR do they try to get people into their doors with amazing deals with the hope that maybe they buy some other stuff while they are there?

 

A 1 day deal has NOTHING to do with supply and demand. Just remove that thought from your mind. It has everything to do with a marketing ploy to get shoppers to visit their stores and online stores with amazing "24 hour" deals, basically making the consumer think that if they don't act immediately they will miss out on a good deal.

 

 

Amazon had it on sale yesterday for 39.99, while other online retailers had it listed at 49.99 and up to 59.99....

 

One retailer having a sale means absolutely nothing about this games health, longevity or server population. The fact that some of you guys are even trying to correlate the two is appalling.

Edited by XOrionX
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Some people just don’t understand how 1 day deals work...

 

Ever hear of black Friday?

 

Do they sale ONLY low demand items for that day? OR do they try to get people into their doors with amazing deals with the hope that maybe they buy some other stuff while they are there?

 

A 1 day deal has NOTHING to do with supply and demand. Just remove that thought from your mind. It has everything to do with a marketing ploy to get shoppers to visit their stores and online stores with amazing "24 hour" deals, basically making the consumer think that if they don't act immediately they will miss out on a good deal.

 

 

Amazon had it on sale yesterday for 39.99, while other online retailers had it listed at 49.99 and up to 59.99....

 

One retailer having a sale means absolutely nothing about this games health, longevity or server population. The fact that some of you guys are even trying to correlate the two is appalling.

 

 

the US having black friday where everything is on sale is proof that the US is doomed

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Let's review ...

 

Early adoptors and Star Wars fanatics jump at the chance to get the game when comes out -- at a high price point, to much success.

 

Initial early adoption phase is complete and the price is lowered, pulling in people who like Star Wars or MMOs in general but didn't want to take a chance on a $60 game -- level of success for this is TBD.

 

The MMORPG genre works with a view for the longterm, with success derived from two things: increased subscriber base and sustained membership. The initial push netted 1.5 - 2 million sales at somewhere between $60 for the barebones edition and $150 for the collector's edition -- without factoring in the higher priced items, total sales of 1.5mil units @ $60 per unit nets you $90mil -- a decent chunk of the development cost. These initial sales established a core subscriber base. The recent price drop was done to increase that base, fulfilling one of the two core requirements of a successful MMO (from a developer viewpoint anyway).

 

Finally, if the main problem with this game is the lack of population on many of the servers ... then why would a sale be a sign of a doomed game? Wouldn't it, by definition, allow more people to have access to the game? Would that not fill the empty servers?

 

So ... tell me again why a $20 price drop was a bad thing?

 

These things were probably discussed in the 19 pages prior to this post, but it just feels better to shout my logical rantings into the void rathan than letting threads like this drive me crazy...

 

TL;DR: blah blah logic blah blah... sale price = more people = better experience for everyone.

Edited by ZeroOneNine
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Everything I agree with apart from one thing.

 

This is not a loss leader promotion. It's just a discount. There is a still a decent profit margin even on this sale.

 

Your right it doesn't meet the loss part of the lost leader promotion but it is same type of sale. Amazon is lowering the price of a popular seller to encourage people to come to their site, see the ads and possible purchase something else now or in the future.

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Actually supply and demand is contrary to what youre saying. The more popular the game is, the longer it should stay at full price. That is why every game in the world drops its price as it gets older, and less popular. That is economics.

 

The game doesn't neccessarly get less popular (eventually it will be not right away) but the market for the game diminishs because people only need one copy.

 

For instance the market for the Wow retail box has diminished tons but there's still 10.1 Million Subs so it has nothing to do with popularity.

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He's right, they have “sales”. However, when the computer products are 1200 or more, 1-5% off is what they call a “sale”. Quite pathetic.

 

What computer products are $1200? You can get a high end machine for under $1000. A hard drive costs $100-200, DVD Burner $20-30, Video Card $50-600. 4GB DDR3 is $25.

 

You can buy a lot of computer products for well less than $1200.

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What computer products are $1200? You can get a high end machine for under $1000. A hard drive costs $100-200, DVD Burner $20-30, Video Card $50-600. 4GB DDR3 is $25.

 

You can buy a lot of computer products for well less than $1200.

 

That was a discussion about Apple products.

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What computer products are $1200? You can get a high end machine for under $1000. A hard drive costs $100-200, DVD Burner $20-30, Video Card $50-600. 4GB DDR3 is $25.

 

You can buy a lot of computer products for well less than $1200.

 

I think he was talking about Apple...

 

You know, the company that over-prices their equipment and isn't supported by a lot of applications...the company that sells products that you could buy or make yourself for a quarter of the price and perform way better.

 

Yeah, them.

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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.

 

Actually, all of it applies to the side discussion at hand, because the poster you're arguing against was making his statement in regards to Amazon's Gold Box specifically. Not worldwide economics as a whole.

 

The arguement was that a well selling item can have it's price lowered, on Amazon Gold Box for a 24 hour period, as a general economically sound idea. An arguement that Amazon has proven to be a solid practice for it's business. Nothing within his arguement applies outside of Amazon's business model. Which again, is proven successful.

 

 

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.

 

Which is why every single day Amazon does the exact same thing with other items, and why no other major retailer had a similar 24 hour sale, but rather sold the same game at it's $59.99 mark?

 

 

Free Pancakes @ Ihop!

 

Proof pancakes are failing, buy more waffles.

Edited by Jxspyder
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