ESPN Sports Titles to Scrap $20 Price Point
SansTinfoilHat writes "Gamesindustry.biz reports that 'Take-Two and partner Sega will seek to return pricing to premium levels for the next-generation console versions of [the ESPN series of sports games].' It couldn't last forever." From the article: "Most notably, [the low pricing] has put immense pressure on Electronic Arts' market-leading sports range, with the giant publisher forced to drop prices on several of its key EA Sports titles in order to compete more effectively in the run up to Christmas."
I think those ESPN people are in for a little shocker. Once you cut prices like that on a product that is not the leader in its sector, there's no going back. Madden is king, they can do what they want for the most part, but ESPN is going to find out that they can't hope to stay in the game without some kind of price advantage. Now maybe the retail price will go back to $39 or $49 with a mail in rebate or some other incentive. But toe to toe with Madden at the same price they can't make it.
Discounts are a double-edged sword. As the auto manufacturers found out, once you start discounting, the customer expects it all of the time. When was the last time you or anyone you know bought a car that didn't have a rebate or discount financing? Only the top end can play without incentives.
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I personally prefer ESPN NFL 2k5 as a game anyway. No annoying online bugs that cripple Madden. Now, I play with my buddy who joined the army every day for under 50 bucks. Not too shabby.
I think that if ESPN can keep their titles at 20 bucks they'll just sell and sell and sell. Think of it, 20 bucks for an online enabled football game that is as good as the 50 dollar competition.
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If you read the article, the experiment was successful, and put pressure on EA to lower their prices.
Also in the article, they are only talking about raising prices for the next-generation consoles-- i.e. the PS3 and X-Box 2. There is no mention of what they will or will not do for the current platforms (only speculation).
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It seems like everyone skipped over an important phrase in that post:
Next Generation Consoles
Obviously the cost to develop for the new consoles is going to be higher, so a better return is going to be made by returning to the standard pricing method.
This would be a bigger deal if it was happening for current game systems, but it isn't.
The $20 price tag worked, the ESPN line was able to outdo EA's line... at first. The problem is EA fought back the way it always did, by throwing money at the problem. Once all sports games hit $20, Sega's advantage was lost and any future attempts to do so again would just be responded by EA by the lowering of prices again. It was a one-shot trick which gambled on EA not being willing to lower the price so quickly.