SimCity is back, gaming is dead, RIP gaming.

[UnSub]

Where did you hear that GameStop can do that?

From sources like this. It doesn't mention GameStop by name, but does say this:

The rest goes to the wholesaler/retailer, marketing costs, unit costs, co-op advertising, and return product (large retailers can return unsold games to the publisher).

Returns are a factor that apparently goes into what makes up the box cost for physically distributed titles. (There are both sales returns i.e. "This game doesn't work and I want my money back" and vendor returns that are likely covered under that banner, but either way it is stock going back to the publisher.)



I also had a look through GameStop's 2011 annual report and they talk about:

We have established price protections and return privileges with our primary vendors in order to reduce our risk of inventory obsolescence.

So in the event of a massive overbuy from a publisher, GameStop can push that inventory back to the publisher, who then has to get rid of it. They'll probably look to push stock around internally first - sending it to stores that want stock, because GameStop makes money from selling the game - but they aren't always on the hook to sell every copy of a title that comes into the store.

But GameStop don't want to overbuy stock, because that's wasted shelf / inventory space that could have been filled by titles that sold. If they had to actually pay to 'own' the stock they sold up front then video games would probably be a lot more expensive.

[calapine]

The slides thing was a deliberate joke.

Ha Ha. How very funny. 

Did BP make any oilspill jokes latley?

[Merusk]

What I get from that chart is that my digital games should be costing me between $11 and $26 less than physical copies.  Weighted towards the high end since I am forced to give up right of first sale and can potentially have all rights to my games removed at any point due to DRM foolishness.

[Goreschach]

What I get from that chart is that my digital games should be costing me between $11 and $26 less than physical copies.  Weighted towards the high end since I am forced to give up right of first sale and can potentially have all rights to my games removed at any point due to DRM foolishness.

Keep in mind that a lot of the retailer and publisher overhead is effectively advertising that will need to be made up for through other channels.

[Merusk]

I was leaving publisher revenue out of it for that reason.  Publishers are becoming distributors, they don't get to keep both cuts when I'm forced to give up some pretty significant consumer rights.

[Xanthippe]

I was leaving publisher revenue out of it for that reason.  Publishers are becoming distributors, they don't get to keep both cuts when I'm forced to give up some pretty significant consumer rights.

I don't mind giving up resale rights and paying the same price, provided that I can delete the game off my system and download it again whenever I want. Not having to store stuff physically is a huge selling point for me.

[Lantyssa]

Where did you hear that GameStop can do that?

From sources like this. It doesn't mention GameStop by name, but does say this:

The rest goes to the wholesaler/retailer, marketing costs, unit costs, co-op advertising, and return product (large retailers can return unsold games to the publisher).

When did Gamestop start carrying any PC games to have a need to return them?

[HaemishM]

The problem in that pie chart isn't just the the publisher has the biggest slice, it's that the publisher isn't splitting the already split margin with the developer fairly. An entrepreneur that goes directly to a retailer will usually expect to have to give the retailer 50% of the retail cost of the product and keep the other 50%. Because the devs are getting a publisher to fund the development, they are getting absolutely ass-raped on the split with retail. Also, the retailer split isn't even equitable with the fucking publisher. The publisher gets way too big a chunk.

[Rendakor]

The retailer percentage is also very inaccurate; their profit margin on games is closer to 10%.

[Paelos]

What I get from that chart is that my digital games should be costing me between $11 and $26 less than physical copies.  Weighted towards the high end since I am forced to give up right of first sale and can potentially have all rights to my games removed at any point due to DRM foolishness.

And that's what I pay now for steam sales on games. My top end is probably $30. Nothing is worth buying right now at a $60 price point. I didn't even buy Skyrim at that.

[Ingmar]

The slides thing was a deliberate joke.

Ha Ha. How very funny. 

Did BP make any oilspill jokes latley?

...seriously? We're going to make that comparison?

[tgr]

I'm sure we can let that one slide on past.

[Hutch]

I dunno. These corporate types can be pretty slick.

[Yegolev]

Don't make me get out the Duck Tales theme song.

[Modern Angel]

...seriously? We're going to make that comparison?

vidya games

[UnSub]

The retailer percentage is also very inaccurate; their profit margin on games is closer to 10%.

It's only a rough estimate because these things can vary from title to title - profit margins would be much higher for stores if a title sold out and had no returns, for instance.

Also that $ amount should be treated as revenue to the store, not profit.

An entrepreneur that goes directly to a retailer will usually expect to have to give the retailer 50% of the retail cost of the product and keep the other 50%.

The entrepreneur would potentially be on the hook for all the development costs as well; publishers take that risk from the studios who sign on with them.

[Malakili]

"I can't overstate how completely evil complexity is, especially in a sandbox game," he said. "Constantly ask yourself: What can I remove from the game?"

Good god.

 

You know what, why have a game at all?  Think of all the complexity you could remove by just not having a game.  Someone call EA, I think I'm the perfect design lead for one of their projects.

[Bzalthek]

"I can't overstate how completely evil complexity is, especially in a sandbox game," he said. "Constantly ask yourself: What can I remove from the game?"

Good god.

 

You know what, why have a game at all?  Think of all the complexity you could remove by just not having a game.  Someone call EA, I think I'm the perfect design lead for one of their projects.

Nah, EA has truckloads for those positions.  Look at all of the not-games they've already released!

[jakonovski]

[Mithas]

So this is how EA is going to make money off Simcity. How much do you suppose Nissan paid for this?

[jakonovski]

I have no idea about that, but this is hilarious. 

Plopping down the Nissan Leaf Charging Station will add happiness to nearby buildings. Adding the Charging Station will not take power, water or workers away from your city. Zoom in to the streets of cities and players will start seeing a percentage of their Sims from all wealth classes driving the electric vehicles. The Charging Station produces no garbage or sewage as well making it pollution free.

http://forum.ea.com/eaforum/posts/list/9416786.page

[tazelbain]

Lol, quite the simulation.

[HaemishM]

So this is how EA is going to make money off Simcity. How much do you suppose Nissan paid for this?

Whatever it was, it was too much.

[Mithas]

I can't think of another game I have played that had actual product placement. Am I just blocking this out or can anyone else think of one? Did The Sims have this sort of thing?

[jakonovski]

Sims has loads of those, so it's not a new thing for EA. But one would expect them to have the decency to at least restore core features such as cheetah speed before going off on an advertising spree.

[tgr]

Sims has loads of those, so it's not a new thing for EA. But one would expect them to have the decency to at least restore core features such as cheetah speed before going off on an advertising spree.

Optimist. Munneh before customer satisfaction.

[HaemishM]

You assume the latter thing is even a consideration. 

[MisterNoisy]

Does the game simulate the Leafs (Leaves?) dying/clogging up the roads after their batteries quit from being stuck in traffic for days on end?

[Ingmar]

I can't think of another game I have played that had actual product placement. Am I just blocking this out or can anyone else think of one? Did The Sims have this sort of thing?

Yes, the Sims has stuff like that. Along with shitloads of other games. Shit, the arcade version of Tapper had Budweiser ads in it like 30 years ago. I think the first time it really stood out to me was Crazy Taxi which is what, 15 years ago?

Alan Wake is packed with it, snowboarding and skating and racing games tend to have a lot, etc. It is pretty ubiquitous.

[Mithas]

I guess their product placement didn't work because I don't remember any of that. Could be the drugs though.

[Ingmar]

[Kail]

[jakonovski]

This is probably the best in game ad ever:

http://www.youtube.com/watch?v=UBgcrAbja90#t=6m43s

Open it in new tab coz timestamps don't work in embedded videos :(

[Sjofn]

Sims has loads of those, so it's not a new thing for EA. But one would expect them to have the decency to at least restore core features such as cheetah speed before going off on an advertising spree.

Loads? The only one I can even think of is the Prius. I ignore the Stuff Packs, though, maybe they have more of that shit. Aside from pimping their own shit (when they play video games, the choices are various EA games :P), I can't think of anything else besides the Prius (which I downloaded on purpose  ) in my own game.

[jakonovski]

Sims has loads of those, so it's not a new thing for EA. But one would expect them to have the decency to at least restore core features such as cheetah speed before going off on an advertising spree.

Loads? The only one I can even think of is the Prius. I ignore the Stuff Packs, though, maybe they have more of that shit. Aside from pimping their own shit (when they play video games, the choices are various EA games :P), I can't think of anything else besides the Prius (which I downloaded on purpose  ) in my own game.

The SO says she can remember Fiat & Ford cars, T-Mobile, Dr. Pepper, Fanta.

edit: also some pet store and clothing labels