Premium Prices
432 posts
kmendo88 wrote:Many on here are correct in saying that EA would stand to make more profit if they made the market more accessible to more people.
Based on what exactly? People have been saying this but there is no way to know for sure. It's conjecture. I said in another thread that if EA could reasonably project a price decrease would result in greater profits they would implement it overnight.
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Based on many other business models, for one. Also the fact that these types of threads are a bi-weekly thing. It shows that there are a lot of people who would be willing to pay if the prices could be justified by more people. This isn't a new concept.
I made a few points that more or less answer your question. You have to get people in the door before you can sell them something. At the current prices, not many people are willing to step foot in. I mean, you can't even buy a single premium character or building with some of their smaller donut packages. What can you even buy with a box of donuts? You'd barely make off with a plant. Most casual gamers see that as discouraging and are less willing to even put a small amount of money into the game much less get hooked and start buying more and more.
Or just because you can afford it that doesn't mean that you have to buy it. The game is enjoyable even for the players that don't want to spend any real cash.
Example, if you buy a projector you "have" to buy a projection screen as well to enjoy it. Still if you have a nice smooth white wall you can rip the benefit of a even bigger screen. Yet you sacrifice the 5-10% of the quality you could have had with a 100$ screen but which would be around 100" and not the 150" your wall offers you. In the end of the day it doesn't matter if you will choose to buy the screen because the ability to watch your favourite movie (or play free your game with a 400$ device) will give you a satisfaction that is really close to 100% even if it's not.
Who said anything about everything? I'm clearly talking about prices on individual items. I don't want half the hyped up junk they release. Doesn't change the fact that you pay a lot for single items.
Also, it's not so much being able to afford it. I can drop 60 bucks on this game if I wanted. You don't get * for 60 bucks, which is the whole point that is being made in this thread.
But you know, there's a fine line between affordability and just plain milking the hell out of people. Like OP said, if the prices were lowered, more people would be willing to shell some cash. It's almost like every other week they release something worth around 8 dollars. And also, single characters are going to be priced at 80 Donuts instead of 60 Donuts. Also, it's not like they're not going to make a lot of money if they sell it at a lower price. Steam just had a sale for Alan Wake at $4 and a lot of people bought that, including me. Might not make as much, but it sure is a profit in my opinion.
All I'm saying is, it should be at a reasonable price. Call of Duty's map packs are $20 and it sure as hell takes a lot more time to make than these $8 graphics.
By the time people get to the point of buying the less costly premium they are probably already either hooked or bored of the game.
When VCRs first hit the consumer market (about 1980) a pre-recorded video tape ran $60-$80. Considering the time period, that was a great deal of money for a 2-hour film. (There was also a thriving pirate tape market, but the quality of the pirate tapes was awful.)
Then Paramount Studies made a bold move: They released Star Trek: The Wrath of Khan for $20. It sold like crazy, and that one market test was so successful it changed an entire industry. By lowering the price, the tapes were accessible to so many more purchasers. (And it also cut the heart out of the pirate tape market.)
Thinking back on that example, it makes sense to me that lowering the price of donuts (or the number of donuts needed for any given purchase) would increase the volume of donut sales and ultimately make EA more money.
Was there not more behind their pricing of early VHS? Back then, most copies were sold to rental places, who even much later paid more then home viewers. Most people rented early on instead of buying their own copies, and as such they paid the higher prices if they wanted to own it. I may not be rembering it all correctly, I am a child of the 80's, but most of that was before paid too much attention.
And while lowering prices may cut down on hackers, there would still be a fairly large group that are not willing to pay anything. It's not like there weren't any bootleg videos after the prices came down for the home market.
I don't mind buying moneymakers...even Dr. Nick doesn't seem to be that bad...but there is a limit. I may want more (who doesn't?) but I'm happy with what I've got.
I don't make much money at all from my job but still have managed to get all the premium stuff, including limited time donut items, as well as all the premium decorations (usually one of each except the green dumpsters), and I still manage to pay my mortgage, my utilities, and all my various other bills (phone, insurance, food, etc).
If you work for ok wages and manage your money, being a completionist in this game is more than doable if you've been playing since they started releasing the promo item stuff (most of which was free). Most other mobile games which are free to play have much more ridiculous prices for their premium stuff. Look at any of the games made by Gree. I still play their game Kingdom Age (they also do Crime City, Modern War, Monster Quest), but stopped spending money on the game as its a hopeless money sink. They actually charge almost $100 for some of their stronger premium units. $100 for a single, digital representation of stats! That's crazy! Yet people pay it.
Simpsons Tapped Out isn't bad when it comes to pricing compared to some games. That said, 150 donuts for a building and character is what, around $12? That's a bit pricey, but again, its much cheaper than what some of these mobile games are offering.
I've spent a little real life money on this game. I like to buy a golden scratch off about once or twice a week. It's a buck and I think it's more exciting. But I know I'm never going to have a lot of premium things, and I'm totally ok with that.
I just have a feeling they've done the research and they found this way to be the most profitable.