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Game Developer Group Warns Against Amazon Appstore
The International Game Developers Association has posted a warning to the game development community about the Amazon Appstore's distribution terms, detailing several unfavorable situations possible under the rules and saying, "Amazon has little incentive not to use a developer's content as a weapon with which to capture marketshare from competing app stores."
"Amazon does not need the terms it has established for itself in order to give away a free app every day. Nor does it need the powers it has granted itself to execute a wide variety of price promotions. Other digital games platforms, such as Xbox LIVE Arcade and Steam, manage to run effective promotions very frequently without employing these terms. Amazon may further argue that its success depends on the success of its development partners, and therefore, that it would never abuse the terms of its distribution agreement. Given that Amazon can (and currently does) function perfectly well without these terms in other markets, it is unclear why game developers should take a leap of faith on Amazon’s behalf. Such leaps are rarely rewarded once a retailer achieves dominance."
"Amazon has little incentive not to use a developer's content as a weapon with which to capture market share from competing app stores."
I'm no Donald Trump but isn't that what business is? Battling competitors for market share? Sounds to me like that union is afraid of its impending irrelevance.
At best buy or sam's club you'll find a PC with a distinct model number - the manufacturer produces it just for that chain. Makes price matching more difficult and lets the chains show lower prices etc.
So you make an Amazon version of your game with a different name. Maybe "Game Lite" or something similar enough to the normal name to ensure your people can find you, but different enough that you can legitimately say it's not the same game. Maybe leave out some levels or change backgrounds. Now you can set whatever list price you want - this game has never been offered before.
Bonus - your core audience will buy this one to, so they have every version.
I wonder why developers bother with Amazon at all. Their app store is incredibly limited by their stupid policies. Angry Birds Rio was an exclusive release on the Amazon app store, and given away for free. .... But doesn't work outside the US. End result is that despite the game was being given away, and the previous version was available add supported, Android forums were full of questions relating to piracy of the game.
It's fucking 2011. Angry Birds Rio is not some kind military weapon, it doesn't use encryption that will breach US export laws. Amazon why will you send me practically anything but not offer me a digital download?
On top of that you know my address from my account, why did you let me waste 20min downloading your stupid appstore app, then force me to setup a one click account for something you're giving away for free before giving me an error saying the store is available in the US only?
Amazon I extend my middle finger to you, and to those developers who will use Amazon I look forward to finding your apps on bit-torrent if you don't offer a download or an alternative app store.
All that has to happen is a developer doesn't give away the game and this never happens. I don't see the problem here at all. I should also mention that I have noticed huge numbers of apps that go on sale at a discount when first released then a few weeks later the price goes up. So I'm not sure I even see their point here at all when it seems this is an industry standard.
I think you didn't read the article carefully enough. The point is that that the developer surrenders essentially all control over their own pricing when they put something in the Amazon store. Amazon can just unilaterally tell you, "Oh, by the way, we're giving away your app this month. Don't like it? Tough." Now, yes, Amazon still has to give you a little bit of money in that case, but the definition of "a little bit" is pretty darn small: 20% of the list price, where the list price *must* be the lowest price you've ever sold your content at, ever, anywhere.
The point isn't that Amazon might engage in volume-based pricing strategies. Yes, times are changing and old retailing strategies don't always work. The point is that when you put your app in the Amazon store you surrender any ability to make your own decisions about your pricing strategy. Instead you hand your pricing strategy to another party who has very different goals than you do and will likely choose a pricing strategy that will optimize for their goals, not for your goals. If you're ok with that, then fine. But be aware of what's going to happen.