07-01-2004, 03:24 PM
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#60
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Rookie
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Re: EA comments on the $20.00 price tag
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SEGA_LOYAL_FAN said:
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frina said:
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Clay_OS said:
VC is rolling the dice. It's really a black and white issue. It either works (they move 600,000+ units) or they bust and fold. Game developing in always a gamble. VC is "All In".
I believe it is Take-Two who is probably behind the roll and they probably have the money to do it. The really interesting thing will be if it does work and then they face backlash when they raise the price (if they do) back to $49.99. One of the things I have always been taught as a salesman is that once you lower price you set expectations and it is hard to back to the higher price.
It seems that only a few people get what Take Two is doing.
1) VC teams up with Take Two to sale more copies of the game THIS YEAR.
2) Take Two(also publishers of the GTA series) suggest in name change or rather going back to what people knew how to recognize VC games on store shelfs("2K").
3) With all the GTA money Take Two says "Here take this money for the loss of not being priced $50 per game and let us set the price to CUT into the Madden sales and attract more customers".
4) Final results =
-2K label recognized by casual gamers(trust me on this some people i knew thought that VC was no longer making games when the 2k4 games came out)
-$20 bargain buy for cheap casual gamers, parents or Madden players that would like to see what the other game plays like.
-Staple the brand on the new customers
-For 2k6 go back to the original price.
If anything i hope more people buy it and that's all i hope for the company(they deserve it).
Next to come is to see if SEGA Corp. drops VC and we see Take Two become the official publisher for VC and add.
This is a 3 year contract with Take Two. We all know the strength of the Take Two marketing team after the success GTA series has had. They have as much money as EA does to waste on advertising because of the success of the GTA moneymaker. VC has little marketing decisions for 3 years now. Take Two will either make or break VC in 3 years.
You're crazy if you think that's what happened. The $20 price will be effective for more than this year. It will be effective till they deem they have a large and loyal enough user base. I highly doubt Take Two suggested going back to the 2k5 name. I'm bet it was VC or Sega thought of this themselves because many people were suggesting it. It's not like it takes a genius to figure that out. Also, you're ******** to think that Take Two is subsidizing the money that Sega is losing from the price drop. Take Two did not go to Sega, Sega went to Take Two because they have an effective way to distribute bargain games for cheap. Take Two does not have money to pay Sega to suplement the loss of $30. Take Two is in huge financial trouble right now because of poor sales of new games like Red Dead Revolver and law suits up the wazoo (Government probes about fraud). Sega is not going to lose money on this. The $20 price tag does not affect Sega/VC's profit margin very much. If it was Sega that was distributing, it would, but Take Two has a more efficient way of doing it because they have a company that specializes in distributing bargain games and making a profit. They somehow lower costs. How? Beats the hell out of me, but they obviously do or else Sega would have published the game themselves at a $20 price point. The $20 price point will be effective until at least the 3 year contract with Take Two ends and could possibly be more if the contract is renewed. That is the whole reason for distributing with Take Two... Because of the bargain distributing. Once the contract ends, then it'll go back to regular price.
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