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Re: Geneforge 4 Sales Figures |
Mar 23, 2010, 13:44 |
Creston |
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Zyrxil wrote on Mar 23, 2010, 01:55: #1 This article is one year old. March 17, 2009
#2 It's easy to armchair theorize, "Oh, sell it to me for $5, I promise you you'll triple your profits." He's a 1 man and 2 part timer operation, and if he lowers his price and it doesn't work, he's out $100k.
#3 He already addressed the price issue: http://jeff-vogel.blogspot.com/2009/03/how-many-games-i-sell-part-two.html
A lot of people have commented that I should lower the game's price to $10. The idea that this would increase my profits is, I feel, purest nonsense. Bearing in mind that the percentage cost of credit card processing increases as the price goes down, and, to make the same profits from Geneforge 4, I would have had to triple my sales. Triple! As in, go from a conversation rate of about 1.5% to almost 5%. This is just not realistic.
Or, to put it another way, Geneforge 4 was the game where we raised our prices to $28. Our sales did not go down from Geneforge 3 (which was $25). They went up. A lot. And Avernum 5 ($28) sold a lot more than Avernum 4 ($25).
The Indie games market seems, pricewise, to be on a full speed race to the bottom. I will deal with this in more depth in a later post, but take this one thing away: I charge a fair price. I write big, good games (with 30-40 hours of gameplay, easy), and they easily provide enough fun to more than justify the $28. I will not be shamed into charging less, not when my dollars and cents bottom line is telling me that it's working.
It's peculiar that he's talking about being "shamed" into lowering his price. Nobody is trying to shame the guy. If he feels his games are worth 500 dollars, then charge 500 dollars for them.
Here's the thing though. There have been plenty of indy game developers who started off selling their game for 20 bucks, and sold an x amount of numbers. Then they dropped the price to 5 or 10 bucks, and they sold VASTLY more numbers.
Steam has proven time and time again that people will buy a 5 dollar game on an absolute whim. There have been quite a few examples of games that made MORE MONEY when sold for less. Hell, if you want to make an analogy, Dungeons and Dragons online is making far better profits now that they've gone FREE TO PLAY.
This idea that "If I lower my price, I reduce my profits" is such old-school economics, and it's simply not true in a lot of cases.
In any case, why not try it? He's already made money off his games, so anything else is gravy. Drop the price on your games to 5 bucks, see how much they sell. I'd hazard a guess that he'd sell far more copies than he did at the 28 dollar price point.
Edit : cliffski makes a very apt point that this is partially because of the huge boost in publicity of Steam sales, and that without a huge ad campaign (basically), a small drop in price doesn't make a difference. I'm sure this is true.
However, why WOULDN'T you advertise the fact that you've dropped your price? If there's one thing that makes people buy shit, it's a sale. Black Friday is the ultimate example. People will buy crap they don't need, at inflated prices from a week before, just because they're being told it's a great deal.
In any case, hey, if the guy's happy with 110K in sales, more power to him. He doesn't SOUND very happy about it, though...
Creston
This comment was edited on Mar 23, 2010, 13:53. |
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