MS justifies Games on Demand prices
£50 Reach tag covers "24/7 convenience".
Earlier this week Halo: Reach hit Xbox Live's Games on Demand service, priced at £49.99 – nearly twice the current Amazon asking price.
Many of you pegged this as being rather steep, given that Microsoft is ostensibly saving money on packaging, labour and distribution costs with Games on Demand sales. So, what gives?
"No one retailer has the lowest pricing for every product, and our program is about giving people 24 x 7 convenience and selection when shopping for Xbox 360 games," explained a Microsoft spokesperson when Eurogamer asked the platform holder to explain its pricing strategy.
"We're incredibly excited about what Games on Demand means for digital distribution, and will continue to evaluate and evolve the service to meet market and consumer demands."
Halo: Reach's £49.99 price tag is unarguably very expensive, but it's worth noting that it's hardly the norm for the service.
As way of comparison, Red Dead Redemption is currently offered for £29.99, Super Street Fighter IV is £19.99, Bayonetta is £14.99, Kane & Lynch 2 is £17.99 and Modern Warfare 2 is £39.99.
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Comments (123) Latest comment 1 year ago
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I think that's... slightly better value than this shameless ripoff. It's almost as bad as the PS3 Mass Effect 2 price.
As for convenience, order online at many retailers and you'll have it the following morning - possibly before the game even travels down your Xbox Live ethernet cable. And you can sell it on later. How's that for convenience?
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Hang on...
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So Microsoft, what's so fucking convenient about it now?
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With these prices, I am not.
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These platforms won't work (better for consumer) unless there is competition or a not so greedy corporation running things.
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It's actually worse for two reasons. One being that publishers set the price on the PSN and MS sets the price on the XBLA/GoD, which means MS could have set a more reasonable price if they wished. Two being, that they are the publisher in this case and so retain 100% of the revenue themselves, so don't need a higher price to generate a profit.
But as I pointed out in the other thread on this, retailers would go mental if they were undercut or even equalled by DD in the console market so we're highly unlikely to ever see good value there, MS/Sony/publishers simply can't afford for the retailer to throw the toys out of the pram as they can ultimately refuse to stock titles and seriously damage sales figures as a result (remember that the games industry mostly sells to retailers and not to consumers)
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Excuses, shit price is shit.
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"Get out."
"you can fuck off."
Aye. Pretty much sums this up.
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"We're incredibly excited about what Games on Demand means for our profits, and will continue to evaluate and evolve the service to exploit market and consumer demands."
Indeed.
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and what are their excuses when some titles are reasonably priced,like AvP or Bully for £14.99 on GoD...its bollocks,its just because its Halo and MS are trying to fuck us over
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"They're ripping us off anyway, so what's wrong with stealing from them?"
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I'd love to hear that answer!
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A fool and his money are soon parted.
Microsoft knows this. They simple charge what the market will bear. If they weren't making money on GoD they would change strategy soon enough, but they plainly are happy with their revenues as it is.
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I've never bought any downloadable content or software except for Super stardust on the ps3 twice before I realised I could have linked my accounts and only had to pay for it once.
Even if I became a billionaire over night I still wouldn't pay that I'd feel like I'd been conned.
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Well of course they're really excited about it. Save on distribution costs and all the traditional reasons for games being so expensive and still find a way to charge more than it costs at retail!
it's worth noting that its hardly the norm for the service.
As way of comparison, Red Dead Redemption is currently offered for £29.99, Super Street Fighter IV is £19.99, Bayonetta is £14.99, Kane & Lynch 2 is £17.99 and Modern Warfare 2 is £39.99
Yeah, but I bet it's still cheaper to buy those things at retail. £40 for a game that came out in 2009, with no distribution e.t.c. costs to be accounted for? Excévalue!
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ASDA - 24 hr opening £39.99 (fuckin expensive but still cheaper. And its probably cheaper in-store)
ShopTo - order before 5pm and get it next day £19.95 (limited edition £28.85)
24/7 convenience is bollox. I could get it faster for cheaper practically anywhere.
*May well be a slight exaggeration.
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Translation:
We're a set of cheeky mother fuckers who are trying it on. If it doesn't work, in a desperate act to claw some money out of you, we'll begrudgingly lower the price in the hope it attracts a few suckers and help us towards our bonus related targets.
Fuck. Off.
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If nobody, not a single person anywhere in the world bought this what would the cost to MS be? A 6gb image on a server somewhere and a few lines of code on the marketplace? There are no measurable costs associated with digital distribution until someone buys and triggers a need for bandwidth, which is covered in the price. No sales, means no bandwidth needed, which means no cost for this particular title/project.
There really is no way to stop them while there is no competitor, that's why anti-monopoly laws exist in most countries.
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Either way Reach is a good game by the physical copy, Games on Demand has always been bad but never this bad.
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Even so, why pay £50 when you can get it for £25 and wait a day...?
Ultimately, if MS don't sell any digital copies they'll just reduce the price, so if there are a couple of weirdos out there willing to fork out £50 for a six month old game, then they deserve to pay over the odds.
I don't understand why people are getting annoyed. Surely MS can charge what they like and consumers decide whether they want to buy the product for the price. Market forces will decide the natural price in the long run
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Prices for the GOD stuff has been insulting from the word go here in sweden though. Seriously, Kameo and Perfect Dark were both like 25 quid or summat. In the US they average somewhere around 20 bucks though and that's certainly a great deal more enticing.
You'd be hard pushed to even find retail copies that cost more than the GOD stuff here.
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Cough...
Lets look at "New" Prices on Amazon...
As way of comparison, Red Dead Redemption is currently offered for £16.99, Super Street Fighter IV is £15.00, Bayonetta is £10.00, Kane & Lynch 2 is £7.24 and Modern Warfare 2 is £18.00
And I have a disc I can trade in - so knock a fiver off each for the real final cost
Personally - I want them to keep the retail sector alive as the competition drives these prices down. As soon as their download services are the only option then they can charge £49.99 for everything and you will be able to do sweet FA about it.
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If people don't buy it they be forced to rethink their stupid pricing strategy. Simple as.
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Steam offers 24/7 convenience but you don't see them charging 50 notes, sorry but at the prices you see on PSN and GOD DD on consoles is for complete fools only. If DD is indeed the future of gaming, the future is very bright for the good old PC and quite bleak for consoles.
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I bought the original Dead Space on Games on Demand recently, because it was £14.99, which was very nearly as cheap as the disc version was going for at the time. Didn't take it all that long to download, which surprised me. So I was really happy with my experience buying a downloaded game on that occasion, but bloody hell, I can't imagine anybody would fork out for Halo Reach at that price - even for the convenience.
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Actually these people need checking on. I'm worried.
(sarcasm)
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I get the convenience thing, but the price has got to be the same or at most a few quid more than an average-ish store or onlne price to be considered as an impulse purchase.
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One thing I can't understand is people buying Bad Company 2 through GoD, it doesn't come with the free DLC code so your have to fork out more. Crazy.
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If MS do not sell many at this price then they are less likely to have such a high price again on other products.
Even Steam which everyone seems to love has overpriced games compared to places like Amazon, but people quite often wait till there is a sale or stump up the cash for the convenience of it.
Personally, I still like having physical copies of things I own and the only way I will be tempted away from that is if the prices for digital eventually come considerably lower than the physical copies.
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Basically DD services need to take baby steps. Once they have about 50% share of the market, then they would be able to start offering games at a lower price to the shops without too much fear. The only problem for us is that by that time they would have proven they can still sell games at that price and not need to drop much. However, I feel there will be more than one service offering the games and so there will still be competition and so prices will not be stupidly high like some on here have indicated.
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No it is about screwing people with more money than sense.
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We don't mind the Games on Demand pricing because it caters to a tiny, tiny segment of the population. In certain situations people will pay the extra for the convience of it being available right there to download. Not everything is made for everyone. Like many of you say, why would you pay for it at that price when you can go to GameStop and buy it cheaper? Now if MS eliminated those channels you normally use, or regulated them in a way that established a minimum ad price, then let those tears flow.
Steam isn't the same type of service because Steam COMPETES with these retail stores, MS is actually their retail partner.
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This just seems like MS want us to pay a premium for less than premium service
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Another thing, I could buy a bus ticket there and back to the shops, buy Halo: Reach and have myself a nice meal while I'm at it, for a cheaper price than a virtual download of the same thing on my defunct stone-age 360.
But thank you, Microsoft, thank you for the free meal.
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Pushing operating system technology forwards.
Maintaining a gaming platform that see's mutliple new and interesting titles released for it ( PC, Xbox).
Investing in future tech.
I applaud them for this.
What Microsoft are not:.....
MS are not your friend. They only want your money.
Anyone that pays 50 quid for 6 month old game that is in digital download format deserves what they get. Ripped off.
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Having said that, Modern Warfare 2 on Steam still sits at an outrageous £40. Damn you Kotick.
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But what would have been interesting is putting it on Games On Demand at this price at midnight on launch day. Wonder how it would have sold then?
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2. this is why the companies keep on bleating on about shops, as they can't rip the consumer off as easily.
3. glad i stopped paying microsoft for the 'gold service' and went for the free playstation.
4. the only full current gen game i've bought was on the PS network as it was cheaper than importing...note the word 'cheaper'.
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If Digital Downloads are the future, it can fuck right off at that price!
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You can get hard copies of all those games for far far less. 2 weeks back I picked up a limited edition of Kane and Lynch 2 from Tesco for £6! I bought MW2 for £32 on release day, only to trade it in for £30 at CEX a week later! As for the other games, like I say, you can get them cheaper elsewhere also, and have the advantage of being able to trade them in or sell them at a later date.
Downloadable games are really only good if its priced in the budget range or the game is really hard to get hold of on disc (I downloaded Wipeout HD Fury and Earth Defence Force 2017 recently because after much hunting around I couldn't find them anywhere). But £50? MS are clearly just trying not to tread on retailer's toes, which is ironic really, considering how much they usually - allegedly - enjoy anti-competitive practices!
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*fuckin uploads Reach to Xbox Live and charges over full-price for it with literally no additional overhead*
*goes to sleep on a bed made of money while people on the internet complain well into the night*
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The only people who would opt for download are those rich enough not to care or those stupid enough not to realise that there are much better and cheaper alternatives.
Microsoft needs to be selling games on demand at the second hand retail price and stop pretending the second hand Market doesn't exist. It does and it is here to stay.
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Sooner or later the next gen console will come, all those overpriced games you bought will be wasted - acn't do anything with them!
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Also, given the gap between initial shop release of a game and the time they eventually appear on Games on Demand I've always felt the pricing should perhaps be more towards the pre-owned pricing scale.
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Not only that, but none of the others were within £5 of the new release you can purchase elsewhere and have the manual/48 hour live code freebie (in some cases) with it. And not only that but 17 of them were either twice as expensive or in some cases nearly three times as expensive than you could buy a new copy for.
Just because something doesn't cost £50 doesn't actually mean that they're still not over-charging for the product, which therefore invalidates your comment.
What we could really do is for people within your position of relative power within the industry to put pressure on these people by calling it as it is, which is essentially wallet buggery, not powdering their noses for them with a positive throw-away comment such as the one I highlighted above.
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MS know that £50 is way over the impulse threshold so clearly the strategy is just to cream money from the richest consumers. I don't believe they give a damn about retailers, especially ones selling 2nd hand games. Their wet dream is to cut out the retailer and take maximum % of profits with no resale possible.
In their defence, if they had released Halo Reach for £40 on release day, XBL would probably have fallen over, so maybe the strategy is to keep large downloads at a manageable level. I dunno, I'm just chucking this out there...
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I read somewhere that an alegedly MS employe or fired one I don't remember said that there is total chaos in MS the right hand dosen't know what the left hand does and they should replace the old dinosaurs with some fresh blood cause they don't know shit about what's happening around them.
You know I start to believe them.
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Digital distribution is the future .. and high prices are part of that future.
On a side note i think a closed Full Digital Distribution system for future consoles would come under fire from regulatory bodies.
it's not like itunes where you can still buy mp3's from amazon etc but it's less convinient.
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They have the occasional sale where they discount a few titles (or mega discount a single one), but that's only out of some half-hearted attempt at competing with Steam.
Basically unless the deals on PSN start giving Microsoft a real run for their money (so to speak), I don't really see them finding any pressing desire to discount on older titles.
And yes, the reasoning they give is pretty much tripe.
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The door? But that's miles away!
*Gets from GoD*
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So, a MASSIVE mark up as I can d/l it straight away? Oh, does it appear in full magically on my hard drive within seconds? No, it takes over six HOURS to d/l.
Fuck off is it more convenient. Game - packaging - distribution + convenience (if there is any...) = at the very least the same price as current retail prices. Not the fuck loads more they are actually charging.
Rip-off merchants.
It's about time EG started to get all Paxman or Panorama on their arses. Rather than give publishers and manufacturers a podium to 'justify' their actions on various gaming related issues, how about some quality investigative journalism?
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I was pleased to see the Deals menu appear on the Spotlight panel, which seemed to imply that they would be using it to promote permanent and temporary price cuts. Red Dead Redemption is £30 now, but the other week it was £40 for example. If they continue with price depreciation over time then digital prices may eventually prove as enticing as a physical prices.
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They talk about convenience of downloading it like a 6-10gb download is no big thing, that would take me a day or more to download. I could probably get shopto.net to deliver it by the next day if i ordered first thing in the morning.
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Seriously. Get. A. Fucking. Grip.
Are these people delusional or do they think the general public has an IQ of 12?
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I would say that its more of an inconvenience as you have to download it on all of your xbox consoles to play it. Its signed only to your account so when the kids play they have to take your account to their xbox or play on yours etc. Discs are much more convenient.
An while we are on about digital distribution, EA need to cut the fucking shit out with single use codes to play online. I got need for speed at christmas and now when my kids want to play online they have to take my account otherwise they would need to but an online pass. EA are a bunch of price gouging cunts and wont be getting a fucking penny more from me for any future games that do this. Its a case of double dipping, I already pay for a gold sub to play online, the cheeky fucks.
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Utterly stupid price point and arguement for it being so bloody high,anyone who buys it at this price needs their head examined.
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It's so much easier to Ctrl+C & Ctrl+V.
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I had to go back to this from dsmx. It's a good idea but it's a bit like the banks, you'd need a concerted effort so that if they follow up on their bluff you're not the one who gets screwed. If EA, Acti, Ubi, MS and Sony all together decided that DD should be cheaper it'd work, retailers couldn't possibly hold a gun to the heads of the five largest publishers on the planet at the same time or they'd have no stock and no profits for themselves. If just one publisher does it though, you can bet money that GAME at the very least will refuse stock (they've done it before over a fight with Activision regarding GH stock) and their refusing to stock just one big game will snap the other publishers back into line, even if they pretend to buckle at the last minute and stock it anyway, the mere threat is more than enough given the cost of games development these days.
The Retailers are a strange beast, they're like the gunner on the Star Destroyer in A New Hope, he was a non-character who didn't really matter, but if he did shoot that "empty" escape pod, that would have been that. Retailers have no say in what direction the industry takes, but they could bring the entire industry to its knees with no effort whatsoever.
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It was £27 on Amazon last week
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£50? Christ.
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