07-03-2003, 11:28 PM
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#40
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Rookie
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Re: Would making ESPN $20 keep you from buying Mad
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sportsgeist said:
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wwharton said:
Lets see. They're planning on profitting from selling it at $50 a pop and you're suggesting they sell it at $20, $30 less. Meaning they'd have to sell what 2 and a 1/4 to match the amount they plan on receiving for just one. So they'd have to sell over twice as many as what you think they will for it to even be worth the extra second it took to think it up and that's for a penny of a profit over the current plan. I won't even comment on the other reasons this makes absolutely no sense because the economics behind it is MORE than enough.
Look Sega makes a profit unless they give them away for free. I used to work for a company that made CDs and DVDs and the total price per unit was $1.25 to $1.40. Even at $20 they would make a profit. Now Having the price at $20 or $25 is only for people buying Madden2004. Buying ESPN only would cost $39.99 to $49.99.
Last year Sega was looking to sell at least what their base for the Dreamcast was which was around 2 - 2 1/2 million units. We all heard that they only sold roughly 500,000 units. Which means a mil and half or 2 million ended up sitting on the shelves not making a dime. Selling it new for $39.99 and $20 for the people who picked up Madden2004 would get rid of every copy as oppose to what happend to 2K3. If Sega had a deal like this out of the 4 1/2 million Madden sold all Sega only needs a million or million and a half of these people to take the $20 deal. All of the copies get sold and not sitting on shelves takin up space. In the process they convert Madden fans to ESPN. Hell I would even go as far as finding someone who liked Madden and pick up both games and split the price. Either way Sega would sell every copy and convert some people over to ESPN.
Oh yeah I almost forgot when people saw 2K3 for $29 to $19.99 they bought it just to check it out. So your whole "Something must be wrong with it" thought is blown out the water. Those copies would've never sold if they had stayed full price. The other funny part is even a few people here kept selling their copies only to buy them back later on. You also need to get it out of your head that Sega wants to sell their game to people other than the 4 1/2 million Madden fans. That's the people they want to buy their game not just some joe shmoe off the street that never played 2K before. Sega wants more people buying ESPN and less people buying Madden. Just like EA wants more buying Madden than ESPN. Sega knows it won't win over every Madden fan over night but my idea would accelerate the process.
I don't know why everybody is crying I still don't think Sega will let Madden have a whole month to itself let alone 2 days. I think it will release early or the same day.
Your last point is dead on. Anyone who thinks that ESPN won't be coming out until September must be on the pipe. The game will come out at most a day or two later then Madden, probably earlier.
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