It feels this holiday season has been the craziest ever with regards price drops, I don't think I've seen so many triple A titles drop by so much so quickly. I understand it can boost sales temporarily but it just can't be healthy at all.
We've seen mega titles lose 20-30% off the launch day price within a week or two, I'm a big gamer I buy more games than the average gamer does but I've felt burned enough this year with super quick price drops that going forward I'm going to wait a week or so from now on.
And that's the crutch of the problem publishers have now fostered, they are training customers to wait a week and get the game later with a massive price cut and better game largely due to how quick patches are dropping now. This can't be healthy for the industry at all, just this week I was interested in dead rising 4 but given what's been happening I waited, guess what a week or so later Argos are doing the game for £24.99 come on this can't be healthy and I bet it has the suites at these mega pubs nervous but is it largely of thier own doing? What does the future hold if they continue down this path.
All of these price drops are/should be baked in to the marketing plans for these games.
The publishers know exactly what they are doing.
Yeah sure Argos had a gret deal on Dead Rising but how much product did they have to order or what terns did they agree to to get that price? That deal came from a trade between the pub and Argos. Pub gets a guaranteed order at a price, so guaranteed revenue, and Argos gets a hot new title it can put in an ad to get you to come to the store etc.
So I am not worried at all about the retail practices of big Publishers. They know what they are doing and what deals they want to cut at wholesale etc. What concerns me regardig publishers is the push for loot crate crap and micro transactions to make up for the margins on the back end of the deal.
They are pushing towards a more an Average Monthly Iser type metric that they hope to monetize versus getting all the cahs up front. This is just going to happen thanks to mobile games. The rise of always connected games and the push to games as a service. Selling 10plus million copies @$40 wholesale isn't nearly as good as selling 2-5 million at $25 wholesale and then converting half those players in to regular users and monetizing a good chunk of that base.
What we should also be worried about the slacking sales of some of these big franchises. This is the second part of the equation as retailers will aggressively discount to clear inventory space and working capital, and then they won't order as much in future.
Finally all of this is due to change as we march ever forward towards an almost 100% digital future. It is coming, slowly, and it may not evn be in the same format as we have today, but the digital future of gaming removes a lot of the obstacles that regular retail has. It could end up better or worse for the hobby.
Personally I don't think you need to sweat out the prices you are seeing currently, in most cases all of this is negotiated and planned for by the Publisher, they have expected sell through at each stage and plan for this. Devs get paid almost regardless of sales, which is good and bad. Maybe all of this just points to the fact that we do need to change the way we buy games.