Topic: DeMartini Whines About Competition

[Xessive]

Steam sales "cheapen intellectual property" says EA Origin boss

"I just think it cheapens your intellectual property," DeMartini told GamesIndustry.

DeMartini said he understands why Steam does it -- "to sell a whole bunch of units" -- but he wants no part of that business model. He compared Steam to retail giant Target and said Origin is aiming to be more like Nordstrom. He was quick to clarify that items will go on sale "occasionally" at Origin, but don't expect deep discounts for 75 percent off.

Expanding on why he feels the way he does, DeMartini said that Steam's business model teaches gamers not to purchase titles in the first month, and instead wait four or five months for a big sale everyone knows is on the horizon.

I get his point but I think he's making two critical mistakes:

1) Steam sales are not willy-nilly; you won't find new titles at 75% off. There are strategies behind the discounts and sales seasons.

2) He's massively underestimating the compulsion of dedicated gamers and fanatics who will buy on-release and even pre-order (they don't wait for a sale). Despite Steam's discounts they still have vast pre-orders and day 1 sales.

Making a brazen statement like "you won't see massive discounts on Origin," he may as well have signed Origin's death warrant.

[K-man]

I'm sure Steam loses some day one sales with customers knowing that eventually there's a good chance they're going to find the game on sale.  I know I don't speak for all gamers, but I am less inclined to buy ANYTHING at full price now.  It seems that games are going on sale digitally and retail more than ever before and it just doesn't make sense to. 

He can look at it two ways, really. Either the IP gets "cheapened" by selling the game for cheap months after release, or the sale promotes more purchases well after the initial hype has died down. 

[MysterD]

Since I often DO NOT feel like spending big $ on most games anymore [i.e. $40-60], I think he's probably right.

Selling a game dirt cheap within a matter of short-time periods [i.e. one month or so] does make me want to just NOT buy many game that comes out ASAP. Getting Mass Effect 3 PC [Reg Edition] for $30 after about a month after release is a good example. About 2 weeks after Darkness 2 PC was released and tanked in sales upon its release [unfortunately], seeing Amazon DVG decide to sell it for $25 was like "Whoa...what happened?" Now, you see this game hitting $13 on digital download sites [i.e. Amazon DVG, GameStop PC App] and even at retail from Best Buy recently for a Day! CRAZY! Yet, nope - I still ain't bought this Darkness 2 PC yet, even despite massive price-cut sales! Still got too much to play or I'm already playing something, as is...

Also, throw into account that many games - especially Triple-A titles - have Day 1 DLC; some DLC is locked-out on the disc [retail] or it came locked-out w/ your base game you bought digital in some cases (Capcom, anyone?); there's often lots of DLC planned; games are often not in the best state upon release day [i.e. I'll wait for a few patches behind your game, at least - Obsidian, anyone?]; Ultimate Edition with everything is often coming a year after your game is out [w/ base game + any DLC + any expansion] - these companies are also themselves cheapening the value of their base game VERY quickly just by the way they do business here. I think many gamers have caught onto the DLC schemes and have decided, "I'll wait for the inevitable price-cuts on base game or the Ultimate Edition w/ everything."

And for base game owners, it gets worse -- there's the new Season Pass thing that BF3, COD: MW3, Assassin's Creed: Rev, and SR: The Third are doing - changing expansion pack [$20] or higher prices for a bunch of DLC's before they are all even released! At least once they say their DLC Season is done, you can see if it's actually worth buying The Season Pass - b/c that'll [likely] be all of the entire DLC packaged together.

Also, take into account especially digital stores selling so many games so cheap so quickly, this massive backlog of mine just keeps growing at a ridiculous rate. I can't keep up with this! And unless a game's really dirt-cheap for me ($10 or less), I just ain't been buying many of the more expensive games. By the time I think of getting around to some of these games that I've bought, they might be even cheaper. If I'm buying a game at more expensive price, I better be planning to play it NOW - i.e. what I do w/ most games I spent over $30 with [i.e. Mass Effect 3, Skyrim, etc].
I've seen SR: The Third PC [base game] for $15 on digital sites. If I wasn't playing so many different stuff & trying to murder some of my backlog, I probably would've bought it by now...probably.
Hell, I still have barely looked at Alan Wake + American Nightmare PC from GOG; and Red Faction: Guerrilla + Armageddon PC.

[sirean_syan]

There's a big difference here between Nordstrom's and Target: the quality of products they sell. Usually one is constructed better and styled a bit more. That usually isn't worth the price difference, but it's enough to get the people with more money to burn into the more expensive store. There is no difference between the games that Origin and Steam. You could try to argue that the EA exclusive games are better, but that's not the case. They have more or less the same hit to suck ratio as other publishers and even then their hits are markedly better.

And really, this cheapening of IPs is just a price correction for the most part. We've realized there should be a range of values like with any other product and most were overpriced. I have no way to back this up, but the continued use of things like Indie Bundles and Steam sales make me suspect that these give many games a chance to sell more. That's not just unit sales, but total profits. So really, it's not cheapening IPs but correcting for the overvaluation that was placed on them to begin with.

Also, you know what cheapens IPs? Turning the end into a big ad for DLC and tempting you with a bunch of shitty side products to get "the full experience."

[Cobra951]

I'm to the point myself where I don't spend $60 for any games other than the truly special ones which promise long play times.  Everything else waits until the price drops significantly.  This guy sounds just like something an XBL head said recently about their business model.  If it works for them, more power to them.  But I submit that they would be selling a lot more product with spot sales and general price reductions.  I will never ever buy a game on GoD for $60, and that's the debut price point now, sadly.  For that price, I expect a disc, a manual and a box (and a long involvement with the game world).  

[Xessive]

I'm occasionally willing to put down cash on pre-orders and day 1 purchases when it's a title I'm that excited about. That said, I have had moments when I felt like a chump seeing the game go down to half price a few weeks later (usually due to poor critical reception or poor sales). Even when it comes to retail, if it's a game I'm psyched about I'll buy it within the release month, otherwise I'm willing to wait for the inevitable price drops.

Regarding the quality of an IP, price isn't the only factor in feeling that something is "high quality." Blatant in-game advertising, incomplete products that you have to reconstruct by buying DLC, shoddy ports, crummy support, it all adds up.