GAME exits Administration

[FatTrucker]

The big problem is if this is the start of a strategic move by the big publishers and system manufacturers to start killing off retail in anticipation of a download only future, then as gamers we face a future potentially without competition keeping prices low.

There aren't an array of competing portals supplying Downloadable titles and content for the major consoles, if you want to release anything for download for a PS3, 360 or Wii then you have to use their download service. It potentially paves the way for M$, Sony and Nintendo to have complete control of their respective markets in future, with no alternative routes to market. They will ultimately control the developers, the publishers and how, when, where and at what price any games are released. Its not difficult to see the big 3 co-operating at a corporate level to ensure that price levels are stabilised across all platforms preventing any serious competition.

I suspect that they have all seen the business model being pedalled so successfully by Apple and its 'i' services and decided that its probably the direction they want to go in the future. Don't be too surprised with the next generation of systems to see dedicated M$, Sony and Nintendo stores opening up just to sell the hardware.

[thebear]

now filed for administration

[psj3809]

I suspect that they have all seen the business model being pedalled so successfully by Apple and its 'i' services and decided that its probably the direction they want to go in the future. Don't be too surprised with the next generation of systems to see dedicated M$, Sony and Nintendo stores opening up just to sell the hardware.

You could say it'll bring prices down to pretty cheap levels like the App Store as Nintendo etc will be selling directly to the customer and there isnt a 'middle man' or cost for game instructions/packages/dvd booklets/printing etc.

Dont get me wrong i'm 'old skool' and hate it when my favourite bands dont release cd singles and its just mp3 singles now, however i'm a dying breed, i just like the collection of cd singles on my shelf, silly really as most people just care about the tune. Same for games, i think a lot of kids now dont mind if its just a download rather than an 'old fashioned' dvd case/instructions etc for a game. Thats the way its going.

Its not all bad, IF they bring their prices down it'll be a huge hit, i'm like an old granddad when it comes to the app store as i'm still in shock that i can get quality games for 69p or free, even in the 80's the cheapest games were 1.99 and were often crappy.

[Matt_B]

now filed for administration

I suspect it's going to be a "shrink wrap" job. That is, they'll go into administration in order to write off most of their debts, but a buyer will come along to pick up most of their assets, re-open the profitable stores, and sell off the loss making ones.

[FatTrucker]

I suspect that they have all seen the business model being pedalled so successfully by Apple and its 'i' services and decided that its probably the direction they want to go in the future. Don't be too surprised with the next generation of systems to see dedicated M$, Sony and Nintendo stores opening up just to sell the hardware.

You could say it'll bring prices down to pretty cheap levels like the App Store as Nintendo etc will be selling directly to the customer and there isnt a 'middle man' or cost for game instructions/packages/dvd booklets/printing etc.

Dont get me wrong i'm 'old skool' and hate it when my favourite bands dont release cd singles and its just mp3 singles now, however i'm a dying breed, i just like the collection of cd singles on my shelf, silly really as most people just care about the tune. Same for games, i think a lot of kids now dont mind if its just a download rather than an 'old fashioned' dvd case/instructions etc for a game. Thats the way its going.

Its not all bad, IF they bring their prices down it'll be a huge hit, i'm like an old granddad when it comes to the app store as i'm still in shock that i can get quality games for 69p or free, even in the 80's the cheapest games were 1.99 and were often crappy.

M$ have made Kinect Sports available via download for just £39.99 on XBL this week. Looking at the Wii store and what they charge just for old NES/Snes titles and similarly over at PSN I think any lack of competition will have a less benevolent effect than you think. XBLA already has an Indy section with pricing comparable with the App store, however for a full retail game from big developers all it does is ensure that if a game is £40 or £50 on release, it will remain £40 or £50 for good. No pre-owned market, secondhand market or competition from online retailers to worry about. I quite like a lot of the Indy stuff on XBLA and I used to play a lot of games on my ipod touch but cheap apps designed for a quick go on the move are a long way from the type of software I want to play for a few hours sitting on the sofa.

I have no real issue with a download only future, I'm pretty happy with digital purchases that I can access instantly, anytime, anywhere on any compatible device without having to have shelves and cupboards full of cheap DVD cases. My concern is the complete lack of anything approaching competition it will bring to the market. The only real winners will be the men in suits.

[Morkin]

now filed for administration

Yup.

http://www.edge-online.com/news/game-gr ... nistration

[MikeFishcake]

I suspect it's going to be a "shrink wrap" job.

They're going to shrink wrap the old, failed company and sell it as a new one?

I know, I know, couldn't resist though...

[FatTrucker]

I suspect it's going to be a "shrink wrap" job.

They're going to shrink wrap the old, failed company and sell it as a new one?

I know, I know, couldn't resist though...

Think of it as 'Pre-Owned'.

[Matt_B]

I suspect it's going to be a "shrink wrap" job.

They're going to shrink wrap the old, failed company and sell it as a new one?

I know, I know, couldn't resist though...

Think of it as 'Pre-Owned'.

It certainly is, in the sense that the games publishers will get nothing from the sale.

[Fightersmegamix]

It took long enough, hopefully something will rise from the ashes.

[pratty]

I suspect that they have all seen the business model being pedalled so successfully by Apple and its 'i' services and decided that its probably the direction they want to go in the future. Don't be too surprised with the next generation of systems to see dedicated M$, Sony and Nintendo stores opening up just to sell the hardware.

You could say it'll bring prices down to pretty cheap levels like the App Store as Nintendo etc will be selling directly to the customer and there isnt a 'middle man' or cost for game instructions/packages/dvd booklets/printing etc.

XBLA already has an Indy section with pricing comparable with the App store, however for a full retail game from big developers all it does is ensure that if a game is £40 or £50 on release, it will remain £40 or £50 for good. No pre-owned market, secondhand market or competition from online retailers to worry about. I quite like a lot of the Indy stuff on XBLA and I used to play a lot of games on my ipod touch but cheap apps designed for a quick go on the move are a long way from the type of software I want to play for a few hours sitting on the sofa.

I have no real issue with a download only future, I'm pretty happy with digital purchases that I can access instantly, anytime, anywhere on any compatible device without having to have shelves and cupboards full of cheap DVD cases. My concern is the complete lack of anything approaching competition it will bring to the market. The only real winners will be the men in suits.

Nintendo have already said they wish to preserve the value of games, ie will continue to charge substantial prices for their games. On the one hand this view can been seen as stubborn greed, but on the other hand I think there's something admirable about trying to keep video games from becoming a disposable medium where people think nothing of deleting a 59p game.

Will the big publishers charge similar prices and set going rates, possibly but it would have to be through copycat pricing, they obviously couldn't offically colude to fix prices, as that would be a cartel which are supposed to be illegal (unless you're a bank ).

I still think market forces still have part to play if things go download only, if Nintnendo for example charge £45 to download Mario Galaxy 3, and relatively few peple bite, over time they will begin to gradually lower the price to tempt more people to buy. But this relies heavily on people voting with their wallet and sticking to their views on what they think a game is worth, and as you say regardless of that it's still up to the publisher at the end of the day.

Will the likes of Sony, Microsoft and Nintendo set up their own hardware shops? Possibly, but would that lead to an incentive to increase the rate of hardware revision? I don't want to feel obliged to buy a new console or handheld every year or so.

[Matt_B]

I think you've just got to look at how slowly Nintendo's flagship titles depreciate as boxed games. Even some that are four or five years old still command top whack in stores, and any discounts you get will likely be coming at the expense of the retailer rather than themselves. As such, I've no trouble in believing they could sell games on-line at the RRP for the lifetime of a console and do very well at it.

Other publishers might not be so keen on it though, particularly those who know their games have a much more limited shelf-life at full price.

[resident paul]

I suspect it's going to be a "shrink wrap" job.

They're going to shrink wrap the old, failed company and sell it as a new one?

I know, I know, couldn't resist though...

Think of it as 'Pre-Owned'.

I think of it as 'Damaged Goods' to be quite honest!

[FatTrucker]

Nintendo have already said they wish to preserve the value of games, ie will continue to charge substantial prices for their games. On the one hand this view can been seen as stubborn greed, but on the other hand I think there's something admirable about trying to keep video games from becoming a disposable medium where people think nothing of deleting a 59p game.

Will the big publishers charge similar prices and set going rates, possibly but it would have to be through copycat pricing, they obviously couldn't offically colude to fix prices, as that would be a cartel which are supposed to be illegal (unless you're a bank ).

I still think market forces still have part to play if things go download only, if Nintnendo for example charge £45 to download Mario Galaxy 3, and relatively few peple bite, over time they will begin to gradually lower the price to tempt more people to buy. But this relies heavily on people voting with their wallet and sticking to their views on what they think a game is worth, and as you say regardless of that it's still up to the publisher at the end of the day.

Will the likes of Sony, Microsoft and Nintendo set up their own hardware shops? Possibly, but would that lead to an incentive to increase the rate of hardware revision? I don't want to feel obliged to buy a new console or handheld every year or so.

Like I said, the model (and associated success) presented by Apple must be very attractive. The issue with game pricing is that it will become even more standardised, if they decide a standard release price is £39.99 then that's what you'll have to pay to get the game, its not like you'll be able to shop around. There will be no discounting to encourage sales of older games as they won't want people spending money on older titles at the expense of new ones, else why would companies like M$ still be charging the same price for several year old arcade and retail titles on their Live service that they were charging when they were first released on the service. Shopping around for games or getting games secondhand at lower prices will become a thing of the past. If you want to play a given title at any point, you will have to pay full price for it.

To a degree I support the concept of not devaluing games by pricing them to a point where they become throwaway titles. Its important people can't buy too many games at once, as it quickly erodes your enjoyment of the games in question as I found many years ago with a chipped PS1 and access to games for as little as £2 a pop, it put me off games completely and it took almost 10 years to re-ignite my interest in them. But its also important for any market to have real competition in terms of keeping costs to the consumer down and quality of content relatively high. If (and this is afterall purely hypothetical at this point) there is a future where the big three own the market and everything is download only, I fear that any pretense of competition will only be there to satisfy the rules and regulations that surround Cartels, monopoloies and price fixing.

The presence of those regulations doesn't seem to have had any effect in producing real value or competition in any other industry to date where there are just a few big companies in the market, all selling the same products, on the same terms, and largely at the same prices and who all raise or lower their prices at the same time.

[pratty]

Nintendo have already said they wish to preserve the value of games, ie will continue to charge substantial prices for their games. On the one hand this view can been seen as stubborn greed, but on the other hand I think there's something admirable about trying to keep video games from becoming a disposable medium where people think nothing of deleting a 59p game.

Will the big publishers charge similar prices and set going rates, possibly but it would have to be through copycat pricing, they obviously couldn't offically colude to fix prices, as that would be a cartel which are supposed to be illegal (unless you're a bank ).

I still think market forces still have part to play if things go download only, if Nintnendo for example charge £45 to download Mario Galaxy 3, and relatively few peple bite, over time they will begin to gradually lower the price to tempt more people to buy. But this relies heavily on people voting with their wallet and sticking to their views on what they think a game is worth, and as you say regardless of that it's still up to the publisher at the end of the day.

Will the likes of Sony, Microsoft and Nintendo set up their own hardware shops? Possibly, but would that lead to an incentive to increase the rate of hardware revision? I don't want to feel obliged to buy a new console or handheld every year or so.

Like I said, the model (and associated success) presented by Apple must be very attractive. The issue with game pricing is that it will become even more standardised, if they decide a standard release price is £39.99 then that's what you'll have to pay to get the game, its not like you'll be able to shop around. There will be no discounting to encourage sales of older games as they won't want people spending money on older titles at the expense of new ones, else why would companies like M$ still be charging the same price for several year old arcade and retail titles on their Live service that they were charging when they were first released on the service. Shopping around for games or getting games secondhand at lower prices will become a thing of the past. If you want to play a given title at any point, you will have to pay full price for it.

To a degree I support the concept of not devaluing games by pricing them to a point where they become throwaway titles. Its important people can't buy too many games at once, as it quickly erodes your enjoyment of the games in question as I found many years ago with a chipped PS1 and access to games for as little as £2 a pop, it put me off games completely and it took almost 10 years to re-ignite my interest in them. But its also important for any market to have real competition in terms of keeping costs to the consumer down and quality of content relatively high. If (and this is afterall purely hypothetical at this point) there is a future where the big three own the market and everything is download only, I fear that any pretense of competition will only be there to satisfy the rules and regulations that surround Cartels, monopoloies and price fixing.

I wonder though if people are forced to pay whatever the publisher wants, ie fairly fixed RRPs, will that lead to people buying less games in general? Also if you are stuck with the games you download, then that doesn't inspire people to take risks with their purchases either.

Downloadable games have been seen as the chance for the smaller developers to get their foot in the door, and for consumers to experience more of a variety of innovative games. However could download only force cosumers to play it safe with their purchases and stick to the tried and tested genres and established franchises?

Currently people are fairly happy to take a punt on a 99p downloadable game and sometimes as much as £5-10, but what about £40-50 (with no way to get any of your money back if you don't like it). Will this mean developers of said new and innovative games will always have to charge low prices to entice consumers? Which then sends the message to developers that safe sequels is where the money is, and what they should focus on.