The 2011 peak priorities

[Fader209]

I reckon the supermarkets will get in on a little price war over the casual titles, I can feel it in the air.

[gospvg]

I'm not buying anything full price - there will always be some retailer who will have an offer on the big games like gamestop on Deus Ex.

On my list to buy are Batman AC, Gears 3, Uncharted 3, Rage, AC Revelations, Dead Island (review dependant) & Modern Warfare 3

[EvilBoris]

Where have you heard this? At average the retailer has around 20% margin on their games, even less on high profile games like CoD or FIFA (though around christmas, many games have a higher cost to retailers simply because the publisher can take what they want). This is the reason you don't see pure game stores without second hand games anymore; that's where they make their money.

Well I know that we used to pay around ?25 for a game that would retail for ?40 back in the PS2 and XBOX days. I presume that big companies will be getting a much better cost price than that.

And Article that Eurogamer recently ran broke a ?40 game title down to this, so I've put it into a piechart, just cos.

[JSR]

Even in instances were those numbers are real, nobody breaks even at half price when their earnings were 27%.

Edit:
My barely average internet skills prevents me finding that article, do you have a link? Would love to read it.

[EvilBoris]

It'll be different for different games, I can't imagine GAME being in business if they made a loss on such a massive proportion of their stock. You see certain games that simultaneously appear in various offers in various retailers, they must be ones that have a much higher margin on them.

They never say where they got those figures from , but they can't be 100% right, there are all manner of web based companies that according to those set of figures would make a loss on every new release title they sold.

The other thing is that publishers may well throw in Baker's Dozen style extras , which whilst they don't affect those numbers, perhaps make the retailer some extra profit.

I know any years ago Sony used to Provide GAME group with complimentary Platinum title games, which were subsequently sold or given away as the company saw fit. I'm not talking one or 2 free copies either I'm talking the store's whole stock of several titles.

Article is here

http://www.eurogamer.net/articles/2011-01-10-where-does-my-money-go-article

[Guts]

Michael Pachter said that $60 game approximately breaks down to:

-$12 retailer
-$12 platform owner
-$10 developer (varies)
-$9 marketing
-$17 publisher's profits

[JSR]

Michael Pachter said that $60 game approximately breaks down to:

-$12 retailer
-$12 platform owner
-$10 developer (varies)
-$9 marketing
-$17 publisher's profits

This is much more in line with my experiences. And I'm only talking of new games. After as little as two months, the publisher might start reducing the price if it thinks that's most sound thing to do financially.

[Salsa Party Animal]

I think I will be going for

Skyrim, Halo Anniversity pack, Batman Arkham City, Uncharted 3, Call of Duty MW 3, Fifa 2012, Madden 2012 and PES 2012 plus next Cave game for XBOX 360.

[EvilBoris]

Michael Pachter said that $60 game approximately breaks down to:

-$12 retailer
-$12 platform owner
-$10 developer (varies)
-$9 marketing
-$17 publisher's profits

That will be the starting price I'd imagine, Publishers will take a hit on the individual unit price as more copies are ordered by a retailer. Which will be how the large retailers can afford to reduce the price much further than say an independant.

[JSR]

Don't think he meant independent dealers (are there anyone left of those anyway?), as the Dixon group gets about the same prices, and they can hardly be called small.

[EvilBoris]

They aren't a games retailer though, they sell electrical goods and most stores have a tiny, out of date shelf of not new releases which are almost always priced at the full RRP despite being titles which will be in bargain bins everywhere else. I've been into those stores often to see they haven't had any new titles for several weeks.

They can't buy anywhere near the same volume as say GAME group of HMV.
A quick visit to Currys, PCworld or Dixons website will show you that out of the 6 ish titles released this week they only stock 1 of them.

[Guts]

Yes, Pachter mentioned big retailers like Gamestop and Walmart in the U.S.

[JSR]

I meant the Dixon group: http://en.wikipedia.org/wiki/Dixons_Retail

Their stores here in Norway get better prices than the local GAME and GameStop.

[Flabio]

Should also point out that publishers reduce their margin on older titles after a long time, and that platinum titles don't have as large a percentage going to the platform holder.

[elaniel]

Getting:
Dead Island (360)
Gears of War 3 (360)
Battlefield 3 (360)
Uncharted 3 (PS3)
Modern Warfare 3 (360)
Halo Anniversary Edition (360)
Assassins Creed Revelations (360)
Need for Speed: The Run (360)
Saints Row 3 (360)
Sonic Generations (360)
Tales of the Abyss (3DS)
Super Mario (3DS)

Picking up when cheap:
X-Men Destiny, Goldeneye: Reloaded, Ico/Shadow of the Colossus HD

Christmas Gifts (hopefully)
Zelda: Skyward Sword, Mario Kart 3DS