Video Game Movement Aims For Lower Prices

Fed up with the extortionate prices of videogames? Then visit the site of ‘Fairplay’, an organisation aimed at reducing the costs of videogames in order to broaden potential markets and turn around the distressing trend of revenue losses in the industry.

It’s British in origin but the message is still the same: Videogames cost far too much. They encourage supporters to join the one week boycott of buying games from December 1st - 8th in the hope that it will draw attention from publishers that consumers are sick of paying high prices. They DON’T want you to stop buying games full stop but just not to buy a game between December 1st - 8th.

Here’s some snippets from the site:

“The interesting thing about this protest is that it’s not just consumers who want the price of videogames significantly reduced. The people who actually create the games - the designers, the artists, the musicians - want prices slashed too. They’re sick of seeing interesting, innovative, creative game ideas fall by the wayside because people are scared to take a risk buying something new and different when it costs 40 pounds. They’re tired of having to spend all their time making the same games over and over again because the high price means that people will only buy things they already know.”

“Fair Play doesn’t want to destroy the videogames companies. It’s the belief of almost everyone in the industry, from consumers to journalists to game developers, that significantly lower prices would ultimately bring MORE money and profit into the industry.”

Check out Fairplay to learn more.
Fairplay

Developers are echoing these sentiments.

“I absolutely agree that games are overpriced at the moment - what happens is that every time there’s a successful product at a high price, everyone thinks they can jump on the same bandwagon. What you end up with, of course, is a lot of publishers not making any money and trying to recoup it by pushing prices up further in hope of the One Big Hit…” - Peter Molyneux, head of Lionhead Studios, creator of massively successful titles like Populous and Black&White.”

“At £40 for a game people are very cautious. Now films usually cost £20, and at £20 you’re prepared to take a risk and buy a film that you’ve heard is good… you’re not sure, but you’ll take a chance. But £40 is too much to do that” - Charles Cecil, head of Revolution Software, creators of games like the popular Broken Sword series.

And so are respected magazines like Edge and Computer Trade Weekly:
“Gaming’s utterly rigid price structure, where all new console games cost roughly the same, is harming the industry. It is harming the industry because casual browsers can’t be sure what’s in the DVD box they’re buying and because, at over £40 a throw, it’s difficult to justify a purchase with a question mark over it. Easier to go for a couple of DVDs with pointless featurettes and unwanted extras. You know exactly what you’re getting.” - Edge magazine, October 2002.

“The price of games is crippling innovation - with people buying so few games, they take very few risks, so publishers play safer and safer, so sales slip further downwards (how many driving games and beat-’em-ups do you need?), so games get more expensive to recoup the losses, etc etc.” - Computer Trade Weekly

Check the site out fully to understand where they are coming from and vote with your wallet. Power to the people! http://www.fairplay-campaign.co.uk

posted by Meifumado · at 3:08 am · filed under News

 

9 Comments (RSS)

What i want to know is, can a games producer afford to lower the price? or is every thing governed by the distributors? I know the guys here at Big Kid are in the games industry, maybe they can give an insight as to whether Head Honcho’s in games companies can trim the fat off? will that mean artists and programmers have to take pay cuts? or is there another solution?. I know personally i hate buying crap games for 100 bucks a piece. I have stated it here before there is nothing worse, 100 dollars is a lot of money everyone. any idea’s people?

The developers don’t really have a say in how much their game costs. In some/most situations, the money required to actually make the game is paid for up front by the studio/inverstors until a publisher signs up to actually produce the physical disks and market the game.

The movement is aiming to reduce prices by hitting publishers (not developers) in the pocket to a stage so that hardware manufacturers will change the license fee to a proportionate rate — as opposed to a flat rate.

The proof is in the pudding, games sell more when they are cheaper. Excepting a few high profile releases (FFX, Warcraft III, MGS2, GTA3) I hardly buy games full price, but choose to wait until I can get 2nd hand video store rentals or wait until they are reduced in price.

Personally, I think games are expensive because we’ve become used to it. SNES and MD games were incredibly overpriced - I remember paying $220 for SF2: Champion Edition when it finally made it to the Megadrive. Games progressively lowered after Sega and Nintendo were taken to court for excessive profiteering in the early/mid ’90s and have hovered around the $100-$150 mark. So gamers have become used to paying that for new releases, so why would publishers/retaillers change that?

The developers have absolutely no say over game price, it is all in the hands of the publishers. The games industry is going the way of the music industry - think artist vs. record company. Publishers bankroll the development process, and farm out the final game through distribution deals. Once the game is mastered, the developers fish around for another publisher deal. Often they don’t even see copies of the game until it is on store shelves. There are degrees and exceptions (for instance if a developer self-publishes like Blizzard), but that’s the general trend.

Young developers can get absolutely screwed if they are not smart enough to hire a good contract lawyer before signing a game deal. The standard first offer contract with some publishers will legally prevent the developer from working on a similar (or any) title for several years after the game ships, and to claim all software used to develop the game - including inhouse engines and tools that the developer may have taken years to create. That, of course, would mean corporate death for the developer. The publisher doesn’t care. They get their game dirt cheap, a bunch of valuable assets with it, and go find themselves another desperate young developer.

I hope I’m not out of line saying this (and if I am I’ll get my butt kicked at work), but even a company like Krome which is hardly the new kid on the block sometimes still gets sent those sorts of contracts first up. It’s part of the negotiating game. It’s the height of contempt on the behalf of the publisher, and we are lucky enough to be in a position to be able to send them back with the legal equivalent of “who are you kidding” attached, but I really feel for small start-ups who may be forced into a position of accepting such exploitation just to survive temporarily.

Not all publishers are like that, but it’s not that uncommon. Of course, some of what the publishers bring to the industry is positive too, and some are better than others. The trick is developing relationships with the good ones.

I think you would find most developers would be very happy to see the price of games come down, if only because most of them play games :) Personally, I would be happy to see (much) less publisher control of the industry, and everything more reasonably priced. But as with the music industry, there is so much money involved I don’t think we’ll see it soon, if ever.

It’s an interesting issue but I think that this site is full of over-simplistic ranting and is very poorly researched. Some anecdotal stories about the cost of movies and DVD’s does not make for sound economic arguments. They try to draw parallels to Microsoft dropping the cost of the Xbox due to flagging sales when there’s clearly a whole different set of market forces going into that decision.. and conclude that halving prices will immediately double sales.. so everyone wins right? Really.

Is demand for games dropping? Sure this site goes to great lengths to say that the industry has lost money, but unless they can point to flagging sales figures then why would publishers drop prices so dramatically?

They also claim that the console hardware companies should be the ones to lead the way and drop prices, when, by their own admission, the hardware makers only get several pounds per game. And this makes no difference to the price of PC games.

In my mind the games industry is facing the same obstacles as music … a creative medium that is controlled by publishers who have too much control over distribution. Perhaps if developers can harness their own distribution channels then they won’t be so beholden to a few big media multinationals.

In any case, it is true that games are way expensive in the UK even compared to Australia, and they take ages to get here. It just takes a bit more than some pissed off UK gamers to suddenly make publishers drop the prices of everything.

I agree that the site is a bit simplistic at times, although would people want to read loads of pages that had research figures and business equations? I doubt it.

I think they are trying to appeal to a wider audience - not just gameplayers. Parents who buy games for kids at Christmas time, for example. These are the people who inadvertently buy rubbish games. They are not the sort (like us) who keep up with the latest game trends nor do they read gaming publications for reviews. They take advice from EB assistants or mainstream newspapers - both which can range from accurate to waaay off beam. $100+ on a crap game is a risk few can afford.

However it is interesting to note that yes, the games industry is getting bigger every year, but lots of companies are getting into financial straits as they try to produce ‘the next big thing’. Eidos, Rage, Infogrammes, Capcom have all been losing money (I’m sure I’ve missed a few). Something must not be working along the way.

Yeah, I agree that it’ll take ‘more than a few pissed off UK gamers’ but it’s starting to get more coverage (ie the UK site “the register” and slashdot as well — to my knowledge). The people behind it are UK journalists among other professions and it seems to be gaining approval from developers as well. Whether this has any effect is anyone’s guess - but no harm in trying, eh? At worst, it doesnt work and we carry on as we are or it might result in some decent coverage and maybe a little pressure.

Simply put, if the game industry really wants to take off, it has to be more affordable. $100 + is just too much to just casually impulse buy - the money is in the mainstream but the mainstream are being turned off by the high prices.

Thanks to Bruce and Monty for filling me in, i had an idea games prices would be out of the hands of creators and tied up with big corporate money machines who have the capital to pump the stuff around, al la like the music industry as both monty and Bruce and meifumado said.

My comment then is this, If this is the way these big companies deal with producers its a wonder they dont try and take actual creative control over what types of games are made, Its my surmising that in the future paying a hundred dollars just once for a game will be considered cheap!
I’ve noticed a trend towards the massive online multiplayer games, where you just keep on paying! is this the producers fighting back? trying to gain some kind of control on their products? taking it out of the big publishers hands? or is it just another angle found to get our gaming dollar by the big guns.

Verant made Everquest, Verant was bought by Sony ages ago… well before EQ came out as I remember so I think the publishers had that cornered very quickly.

I’m guessing that massively online games take a heavy long-term investment in infrastructure and development that pushes them them out of the league of most small developers… especially if they’re competing with Sony.

Heh - it even showed up at Penny Arcade http://www.penny-arcade.com/view.php3 . Any publicity is good publicity they say.

What is released that week.

I’m kind of unhappy at game pricing. But when I see Sum Of All Fears and other PC games coming out for 50 bucks and 75 bucks. I can see that they can be cheaper. I watched as the price on GCN’s Mario Sunshine was Available for 85 bucks at one store in order to under cut EB in the same shopping centre.

When it comes to games and pricing. I think it would do the public good to know the LEAD PRICE. IE the price the retailer is paying in order to sell the product. It is illegal to sell at LOSS LEADER prices. So you can not sell below the price paid for honour of selling the game at your store. And why would you want to do that.

I’m happy to give each store 10 bucks for each game I buy from them. If I’m giving them anymore then 10 bucks I would really like to know where my money is going.

As for WC3 and other PC games that come out at 99.95 or what I like to call the standard console game price. Is anyone able to tell me whether or not they are releasing at this price because people would pay that much if it was a console game?

Anyhow. Interesting topic.. I think “Wreckless” and “Race of Champions” is out on the GCN that week.. So I doubt I will be participating. But I wont buy any games in the UK during that week.

Does anyone know if “Dirt to Daytona” is coming to Australia on the GCN?

Promise:)

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