Post: Analyst: Activision Priced Stimulus Package Too Low?
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04-14-2010, 04:21 PM
#1
xinfectedsoulx
Daddy's home.
Originally posted by another user
US, April 13, 2010 - Activision may have been too generous with its pricing for the first Call of Duty: Modern Warfare 2 downloadable content (DLC).
Electronic Entertainment Design and Research analyst Jesse Divnich told IGN that Activision could have priced the Stimulus Package higher than $15 and still achieve its record first week sales.
"The accepted commercial success benchmark for DLC for a console game is 20% of the install base," said Divnich. "The stimulus map pack was able to reach that benchmark in just a week, and should reach 30 – 35% (of Modern Warfare 2 owners purchasing the add-on) through its lifetime,"
"It is evident that 2.5 million Xbox Live players felt that $15 was either just right or a good bargain and given the enormous quantity sold (2.5 million), I'd argue that Activision could have charged more and still obtain the same results," he added.
Divnich said the $5 price increase may pose a problem for Activision, however, as it continues to release more downloadable content in the future.
"Unfortunately, now Modern Warfare 2 consumers are anchored with the calculation that 5 maps equal $15, so deviating from that will be difficult for future Modern Warfare 2 DLC content," he explained. "However, Activision could employ some psychological tricks, maybe 5 new maps (no remakes) for $20? Or 5 maps and 2 skins for $20?"
"Whatever the case, you can bet that DLC prices are going to rise to the point where pricing reaches its most optimum in relation to demand," Divnich added.
Divnich said it comes down to what consumers feel is the best value proposition for their dollars, and that choice will ultimately decide what publishers charge for downloadable content.
"Of course the rate hike from $10 to $15 was met with many complaints from consumers, but the commercial success makes it evident that gamers felt the price tag was a good deal," said Divnich.
"It's not a rate hike on a necessity such as electricity or water where consumers have no choice but to accept higher prices. Consumers have a choice and there are plenty of available options if you felt that $15 was too much for 5 maps."
"The consumer has spoken," he said.
Electronic Entertainment Design and Research analyst Jesse Divnich told IGN that Activision could have priced the Stimulus Package higher than $15 and still achieve its record first week sales.
"The accepted commercial success benchmark for DLC for a console game is 20% of the install base," said Divnich. "The stimulus map pack was able to reach that benchmark in just a week, and should reach 30 – 35% (of Modern Warfare 2 owners purchasing the add-on) through its lifetime,"
"It is evident that 2.5 million Xbox Live players felt that $15 was either just right or a good bargain and given the enormous quantity sold (2.5 million), I'd argue that Activision could have charged more and still obtain the same results," he added.
Divnich said the $5 price increase may pose a problem for Activision, however, as it continues to release more downloadable content in the future.
"Unfortunately, now Modern Warfare 2 consumers are anchored with the calculation that 5 maps equal $15, so deviating from that will be difficult for future Modern Warfare 2 DLC content," he explained. "However, Activision could employ some psychological tricks, maybe 5 new maps (no remakes) for $20? Or 5 maps and 2 skins for $20?"
"Whatever the case, you can bet that DLC prices are going to rise to the point where pricing reaches its most optimum in relation to demand," Divnich added.
Divnich said it comes down to what consumers feel is the best value proposition for their dollars, and that choice will ultimately decide what publishers charge for downloadable content.
"Of course the rate hike from $10 to $15 was met with many complaints from consumers, but the commercial success makes it evident that gamers felt the price tag was a good deal," said Divnich.
"It's not a rate hike on a necessity such as electricity or water where consumers have no choice but to accept higher prices. Consumers have a choice and there are plenty of available options if you felt that $15 was too much for 5 maps."
"The consumer has spoken," he said.
Source
https://uk.xboxlive.ign.com/articles/108/1082840p1.html
So according to this analyst, they undercharged people for the maps. I think $15 is enough for 3 new maps, and 2 remakes. Normal map packs on the Xbox are usually 800MS points, with the Arcade games being 1200MS points. Charging the same price for some maps as they are for full arcade games is a bit over the top. Do you think that Activision hired this guy to say that? In my opinion, that wouldn't surprise me. With the amount of people who think they are being ripped off for these maps, Activision could have thought they were a reasonable price and wanted to get that out to us in anyway they can. It's not the first time a company would have paid someone to be biased and it certainly won't be the last.
What do you think?
04-14-2010, 04:49 PM
#11
mugatu
Pokemon Trainer
do these analysts even play video games or own dlc/games from online stores? It seems to me they just arm chair quarterback off numbers alone and spew out shit. A one dimensional approach such as this, which is to just rely on numbers, should not be grounds to make overreaching conclusions like "it should have been priced higher".
With that being said, this is becoming a slippery slope because things like maps and extras used to be free in the past, but because of fuks like divnich and other business heads who think they can nickel and dime everything, it will become worse. Lets see how many people buy the second map pack if they think they can get away with $20+.
The only reason they get away with it now is solely due to the popularity of the COD franchise. Although sooner or later, like battlefield and medal of honor, they will loose their dominance and go back to being forced to provide not only incentives to the customer, but also offer something innovative (addition of new kill streaks wont cut it) for people to buy their products as the marketplace gets more competitive (like new additions such as zipper interactive and respawn entertainment).
With that being said, this is becoming a slippery slope because things like maps and extras used to be free in the past, but because of fuks like divnich and other business heads who think they can nickel and dime everything, it will become worse. Lets see how many people buy the second map pack if they think they can get away with $20+.
The only reason they get away with it now is solely due to the popularity of the COD franchise. Although sooner or later, like battlefield and medal of honor, they will loose their dominance and go back to being forced to provide not only incentives to the customer, but also offer something innovative (addition of new kill streaks wont cut it) for people to buy their products as the marketplace gets more competitive (like new additions such as zipper interactive and respawn entertainment).
04-14-2010, 05:27 PM
#12
BuffaloBooker
pwn'n noobs since 1984
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