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18. Re: Evening Consolidation Feb 26, 2013, 07:28 Beamer
Dev wrote on Feb 26, 2013, 04:01:
killer_roach wrote on Feb 25, 2013, 20:57:
The problem for publishers right now is in terms of pricing their product at retail. Online, they can pretty much name their price and change it at will. Brick and mortar retailers will likely try to get their own pound of flesh out of such short-term sales, asking for things like refunding the difference on outstanding inventory or a window of exclusivity on a sale, things that you don't see as issues online presently. As a result, a publisher is likely forced to stick with frequent price drops throughout a game's life cycle, using time as a mechanism of price discrimination, but will have the benefit of being able to make such changes on a somewhat random basis such that consumers don't get caught in a habit of "waiting out the next sale".
Yes, but thats not a problem they can't control. Look at apple and how much it price controls. They are crazy strict about it. Which is why you almost never see apple stuff go on sale. Retailers make almost nothing on their products, and apple has strict rules on the minimum price they can advertise at. They aren't the only ones, those things at amazon that say you have to add to cart to see the price? Those are signs that they are being coerced in pricing, thats how they are getting around the "you can't advertise our product at less than this price."
And I seem to recall a recent SCOTUS decision saying that kinda thing was ok.

Someone like activision probably has the muscle to start trying that kinda crap with CoD and gamestop.

Apple has plenty of sales channels, most notably their own store, and will happily tell anyone that doesn't want to sell their goods to go fuck themselves. Those people then come back because they're losing serious foot traffic. Those retailers also traditionally did not carry Apple products - they came to Apple around 2002ish and asked to carry Apple products now that iPods were all the rage. Apple said "sure, you can, but here are the rules."

No game publisher can do that. If they tried to play hard with Best Buy then Best Buy would tell them to fuck off and just stop carrying their games until they came back. Same with GameStop - if EA angers GameStop then GameStop just stops buying new EA games. Who loses out more there? At best it's equal.

Apple has enormous power over retailers. Publishers do not.
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