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MS experimenting with Games On Demand pricing

Update out tomorrow, don't forget
Wedbush Morgan Securities analyst Michael Pachter expects Microsoft to experiment with pricing options for its new Xbox 360 Games On Demand service "until it gets it right."

The service launches tomorrow as part of the platform holder's latest Xbox 360 dashboard update with games set to be individually priced at 1600-2400 MS Points ($19.99-$29.99 / £13.60-£20.40).

Numerous consumers have questioned the wisdom of setting the cost of games above the prices they carry at stores or online retailers, but Pachter says that downloadable titles, even at higher rates, will appeal to 'convenience' customers.

"It's pretty clear that Microsoft is working with publishers to generate incremental sales," he told us. "The games are all fairly old so demand is probably pretty light for most of the games. Mass Effect will get a boost when ME2 comes out early next year, and NFS Carbon could get a small boost when NFS Shift comes out.

"I think that the point of pricing at or above catalogue prices at retail is to capture the convenience customer, who wants the game and doesn't plan to make a special trip to the store to buy it... The Games On Demand service should be popular with convenience focused customers, as some people will value the immediate gratification of a download, the ability to download 24/7, etc."

Continue reading this article on Edge.

computerandvideogames.com
// Interactive
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Posted by Jensonjet
By 'experimenting' and 'getting it right', we should read, 'work out how much money they can get from us'!

We all understand Microsoft are in it for the profit, but the lack of consideration or comparison with the second-hand market, and their blatant attempt to milk gamers for every single penny (ie. Avatar clothing and ACCESSORIES!), you can't help but feel resentment towards the company.

I desperately hope paid for downloading ultimately fails, as this is clearly the road to gaming becoming more expensive (ie. no second-hand resale value, no retailer discounts or deals, a monopoly on where and how to buy our games).
Posted by Mortal Mad Matt
How does Michael Pachter get paid for this?!?!? I wish I could get paid for stating the obvious.
Posted by StonecoldMC
In other words, well keep the prices high until the Online Monkeys stop buying them at that price :lol: .

In other words, the prices will remain at the current level unitl further notice :wink: .
Posted by dark_gamer
But on the beta you use a credit card and pay actual amounts rather than using points, so unless they're going to return to points for the final version tomorrow (which in a way would be worse) I don't get why CVG has posted the amount in points... Unless it's going to be an alternate option.
Posted by pp82
They might have variable prices in the USA but here every game is £19.99
Posted by DrRickDagless MD
If its available in the shops i'll buy it in the shops. Convinence my arse! I can order a any game, in the list of Games on Demand, online for cheaper and get them delivered to my door.

I find it a bit cheeky that they make it sound like they're doing us a favor.
Posted by ted1138
It's only obvious once someone has said it, then all the idiots start saying they new it too. :roll:


But seriously( :wink: ), why would you pay this when you can pick up new/2nd hand copy for less than a tenner and then install it to your hard drive, it'll be cheaper and faster(and you have more choice).
Posted by freds1
Crazy. If something was cheaper at a store or online retailer, I'd go there instead.
Posted by stedman
I'll buy the game retail online thanks.

That way its cheaper and I get the case and disc as well...

Unless its cheaper I wouldn't ever consider this service.

Pachter knows sweet FA.
From what he says 50% is obvious 49% is utter tosh (like this) and 1% is him getting lucky.
Posted by bash600
had the update a week and games on demand are £19.99 @ that price ms can take a flying laep
Posted by Black Mantis
Hmmmm. The rest of the article was more interesting in my opinion. Patcher seems convinced there'll be a 500GB 360+...
Posted by horngreen
No experimenting needed MS. All the BC titles should be $10 OR LESS and 360 titles should be AT LEAST comaprable to what a disc version would be used. Sure the convienence will attract some buyers but don't you want more than that? I mean convienence and a fair price will do more. Feel free to send me a check for 100 grand for these oh so brilliant services I've provided.
Posted by brad.storch
MS Point and all those things are like Disney Dollars
Posted by lawless1891
The rest of the Edge article .
(quote)

Pachter also said that if trade-in values are as low as $5, ?even the value-conscious trade-in customer may sacrifice resale for convenience.? In addition, he expects Microsoft and publishers to ?figure out a way to provide exclusive content" with Games On Demand titles.

?Microsoft is going to experiment with pricing until it gets it right. It?s harder to start low and raise price than it is to start high and cut price. Microsoft can start at $20?30 per download, and if demand is light, can cut to $15?25, then can cut again if necessary.
My guess is that as they build a library, Games On Demand will have a variety of pricing from $10?30.?(One reason to think hard before you buy that over priced bit of DLC tat the more you buy the more they make the more they charge .)

Microsoft executive Shane Kim noted recently that simultaneous retail and digital releases via the Games On Demand service are some way off.
Pachter said they could become a reality by late 2010.?Ultimately, when we all upgrade to the 500GB Xbox 360+, they?ll have all games available day and date, and pricing will range from $10?60.
I think that the hang-up holding back day/date downloads has more to do with disc drive space and less to do with any disagreement with publishers.
Once we see a significant number of Xbox 360 owners with Elite (120GB) models and once the Xbox 360+ is introduced, I think you?ll see day/date downloads. That should be some time year-end 2010 or early 2011.?
Posted by ted1138
(cut-paste-highlight and then hit the quote button, it's not that difficult, is it?) :roll:
Posted by xboxrulez
8) MAY KNO THER WILL BE MUCH DEMANDED 4 XBOX 360 GAMES, COS EVEN NOOBS KNO ITS BETTERER THAN PS-CRAP. MAY DEMANDED SO MANY GAMES! NO ROOEM! HAHA
8)
Posted by 360_Fan
This will be a tough one for ms. They could release the games cheap, but then retailers will always become cheaper.
Surely though, no disk, no packaging and no manual costs, these things should not be as expensive as people are saying.
Posted by DrRickDagless MD
When i comes to the idea of only owning an online copy of a game it fills me with dread.

I really like my Xbox but I know that some day in the (near) future its going to break. I will then have to go through the challenge of getting my games transfered onto a new machine and deal with all the rights issue which I've done once already and is enough of a pain now even with customer support.

What I'm getting at is that when the dust settles on this gen how long will it be before companies leave there old products behind leave us with a broken machine that is integral to playing the games we own. I have had 3 or 4 mega drives but I can play any game I have on each them.

I like to own things so I can savour them in my own time. Games on demand no matter how you look at it from any company is simply renting a title until your machine breaks and the severs lose support we all know they don't make'em like they used to.

Sadly this seems to be the way its going. It is a long term view but thats the way I see it, I still get my atari 2600 out once in a while and would like to do the same with my 360 in 20 years time.
Posted by ted1138
CDs and DVDs don't last forever, hard drives all eventually crash and burn, and who wants to be playing twenty year old games some day? and anyway, give it a few years and we won't even be downloading anything anymore, it'll all be in the "clouds", or something. :wink:
Posted by WHERESMYMONKEY
shows how much he knows. They're all priced at £19.99. Not in MS points.

they didn't ever change the price of xbox originals so why would they bother with games on demand.
Posted by barrett
This is hilarious........in Australia MS are going to charge 6000 - yes 6000 MS points for Mass Effect.

Games on Demand = epic fail
Posted by xboxrulez
8) I TRUST MS TO DELIEVERY THE BEST EXPIEREINCE! EVERYTHINGS THEY DOS IS THE BEST! SUPPORTE MS! SUMON END > 8) "SHADES COOL" 8)
Posted by DrRickDagless MD
I do.

Not wanting to sound like an attack here but yea CDs, DVDs wont last forever but thankfully neither will I but in the time I have I will watch TV shows, films and read books made in various decades so the atitude of constant forward progression in the games industry at the expence of older classics is not the way I want to go.

And that cloud thigy you mention is the final straw for me. That will spell the end of a healthy industry and result in a facist gaming state. Unless they set it up that each developer has a internal web page within the Console manufacturers online store.

Without retail we have no competition, without competition we get a thumb up the bum.
Posted by lawless1891
Well done i'm sorry to burst your gloating bubble but the reason i didn't put the quote in between quote boxes is because anything placed in quote boxes does not show up on main news story threads,so is not seen by every one who clicks on said news story ,but you knew that any way didn't you oh great sage.
I have nightmares filled with roley eye emoticons ,every post roley eye emoticons,is everything so below you.
It's like you know all the forum tricks you are the master teach us more of your amazing put downs and one liners.
Posted by wildhook2
Don't think it'll succeed because most of Xbox 360 owners still have 20gb.

Upgrade it to 60gb for 60 quid and it is still too small for downloadable games.

PS3 is cheaper - 500gb for 50 quid.
Posted by Mark240473
To be fair, if your 360 did go belly-up, wouldn't MS let you keep the HD?

When my 360 died, I took it back to Argos and they replaced the 360, allowing me to keep the old HD in the process.
Posted by DrRickDagless MD
Yea I can keep the hard drive but you need the rights transfered and when they stop that in the future what can you do?

And if the hard drive goes you don't just lose one scratched game you lose the lot if you can't re-access them online.
Posted by Currychips
If certain gamers are too fat and lazy to walk to a shop to pick up a 2 year old second hand game, they always have the option of picking one up online for about a quarter of what's being charged in this new store rip-off method.

It's called the internet. You can buy things on it. Put down your burger and your sunny delight and surf the net. Find a bargain and don't fuel these filthy profit whores. They are doing this simply to kill off the second hand market.

XBOX LIVE - Need for Speed Carbon - £19.99

Amazon - Need for Speed Carbon - £3.95

They deliver to your door and everything.
Posted by DazedandConfused
Dude! Do you really need to type like a complete Spakker?

Caps lock and text speak is neither big nor clever.
Posted by blind_fools
whats there to experiment with?
seriously M$ need to stop being the greedy ass holes they are and start being a fair professional company.
i can get mass effect for 20 AUD at the moment, but off games on demand its minimum 20 euros?
last time i checked 20 euros is way way way more than 20 AUD.
whats there to experiment with, selling games online is CHEAPER! than retail games because theres no case no manual no disk, and dont mention bandwidth fees thats what the XBLA subscription fees are going to.
well i guess theres a reason why people call them moneysoft instead of microsoft.
Posted by Black Mantis
He isn't a serious poster, so just ignore his posts.
Posted by ted1138
:roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll:




:twisted:
Posted by xboxrulez
8) I TRUST MS TO DELIEVERY THE BEST EXPIEREINCE! EVERYTHINGS THEY DOS IS THE BEST! SUPPORTE MS! SUMON END > 8) "SHADES COOL" 8)

Dude! Do you really need to type like a complete Spakker?

Caps lock and text speak is neither big nor clever.

He isn't a serious poster, so just ignore his posts.

YOUS A RACISET BLACK MANDIS! MAY TELLING MY FREINDS (XBOX BROOTHERS MAINLY) AB YOU AND UR LAYS.
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