Steam sales: How deep discounts really affect your games

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Valve's Steam sales have always proven a great time for consumers to score some cheap PC games, but over the past several months, there's been some debate over whether these promotions are good for game developers. Some have argued that the major discounts devalue games, and end up hurting the industry in the long run.
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Was a pretty good read, and I have on several occasions had people say to me I should boycott these sales :P

Comments

  • I hate to say it, but people who believe that these sales hurt video games are idiots.

    Sales allow a game to reach people who wouldn't normally buy it. Who else does normally buy games: pirates and people who buy second hand.

    The increase in sales can save a small company Introversion and DEFCON.

    The cheap sale can easily move a game from a person's buy list to a person's play list. So when you release a sequel people know the quality of your products: at $60 Borderlands 2 pre-order is the top selling game on Steam.

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    Just had to throw these out since they weren't in the article.
  • No sales, no 2nd hand games, DRM from hell, online-only single player... The "game industry" is trying VERY VERY hard to make more money, but has the development scene actually gotten smaller over all this time to the point of an industry under siege?

    No it hasn't, has it?
  • It depends on what the scene is. Mobile is booming, the quality and quantity of mobile games are on the up and up. This means the more traditional game platforms have lost some traction. Retail has been on a continual decline for the past two quarters, at least. So it's not like gaming is dying so much as evolving to something that doesn't suite EA and Activision as much as they would like.
  • Major discounts devalue games? No. It's like a sale of anything else... I bought 7 games during the last sale which I probably wouldn't have bought otherwise. Not that I have the time to play them, but hey! :)

    Markets are always going to change though... I mean, renting videos and buying albums in store will probably be things of the past soon enough. It's just evolution. And well, yeah PC (and console) games are a very different market from the mobile one.

    And frankly, I'm very unimpressed with the mobile market as a whole. I think that people don't pay more than R10 for most mobile games because they usually aren't even worth that much. But that is a completely different argument. :)
  • "So it's not like gaming is dying so much as evolving to something that doesn't suite EA and Activision as much as they would like."

    @Karuji - Yeah and I'm loving this fact. If you ask me this allows smaller studio's and single man teams (perhaps only mobile?) to bring something to market and in the process offer innovative new games. A lot of big studios seem to really lack imagination. Down with FPS!
  • @JDog to be honest I believe that $0.99 does devalue games. While Steam sales appeal to people who would not normally buy games the mobile market is in a race to the bottom to try and appeal to the broadest people possible.

    An interesting notion with @Aequitas pointed out to me a while back is that while people feel fine paying $1 for an iPhone game they feel just as fine paying $5 for an iPad game. It actually relates to the psychology of the screen size since the iPad has a larger screen you feel you are getting more for your money.

    A weird personal tangent is I gobble Android games. If I see a recommendation on twitter I buy it. My favourite games have all cost more than a dollar, but for some reason I find FF3 at R140 rather expensive.

    @Tachyon to be honest I still find PC to be king of innovative games. I mean the internet is a great place.

    I'm not that much of a fan of mobile only. Most mobile games can be played just as well, if not easier, on PC. Games like Infinity Blade are great because they actually understand the platform they work on. On of interesting things I read recently was that Nintendo opted for a pressure system over a resistive one for the Wii U because of the response time. iPads have something in the range of a 100-250ms lag on input. So understanding the medium is really important.

    And while I agree with the sentiment of down with the FPS. I think that is only because CoD is viewed at the epitome of FPS. I mean Portal and Mirror's Edge are both really great FPS games. And I am really amped for Borderlands 2. So down with the realistic military shooters, and give me more cool stuff ;)

    To be slightly on topic with this post I hope everyone has Borderlands, or bought it on Steam this weekend past. It was on sale :P
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    I think a lot of this discussion is too pinpointed and not broad enough. Pricing is not as one-dimensional as "how much is it". For example, the more a game costs, the more marketing it needs to spend to get people to see it. In this sense, selling cheaper equates to not spending on marketing. Often, tweaking with the price enough will result in plenty of eyes marketing can't buy. It's also a powerful tool for the smaller developers.

    I'm a unique player in that I'll mostly likely only snap up games, even the stuff I like, on a sale (PS3 or iPad/iPhone mainly). Most of my collection were 2nd hand buys. But I've dropped over $150 on Assassin's Creed Recollection on iPad. It's my niche, I like it, and I find value in it. So it all depends on perceived value management by the studio in question.

    Unoriginal, big-budget games (what I'm assuming the "FPS" calls above are referring to) are just that, popcorn movies. They are big-budget and impressive and cater to that market. We can't really do without them either cos as much as I love my iPad, I still love my Tekkens and Modern Warfare (the first 2, and only sometimes, probably not enough to buy them though, but I'm not "everyone". Clearly.)
  • @Tuism there is an adage in game design. To give a definition of game design that is all encompassing would be so broad that it would we useless. The video game industry is rather similar. Console AAAs are separate from web MMOs, which are separate from mobile, and so on. There is a granularity to video games. Granted when we talk about the game industry it is often about the AAA, which is a mistake since it is not representative of the industry as a whole. But then again I have very little insight into what gaming in China is like, and that's a huge market.

    To be honest I believe the industry could survive without Call of Duty and its ilk. While undoubtedly it has brought more people into gaming I don't enjoy what it does, but I also hate Angry Birds. But if a CoD gamer plays on Steam, and picks up Borderlands since they are both FPS games and enjoys it and expands their gaming interests I'll call that a good game all around.
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    @Karuji - I did not mean to imply that mobile is the king of innovation but rather that mobile is the domain of 1 man teams. A new avenue of game dev. If it is not the domain of innovation it certainly has the potential for it because innovative devs are hard to come by when competing with the big boys on well established platforms.
  • @Tachyon in all honesty I would rather develop with my aim being to be on Steam rather than to be on mobile.

    I don't know why you would tout the idea of a one man team over a groups of indie developers, but whatever suites your lexicon best so be it.

    Take Tiny Hawk for example I neat game but it's sitting in the 10-100 purchases range. The Android, iPhone, and WP7 market places are saturated to the point were it is nigh impossible to achieve reasonable sales.

    I would say just make a good game instead of believing that mobile is a really good thing. If you look at Kongregate there is a decent amount of new game discovery.

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    In short you're going to be competing with the well established big boys of the platform (Angry Birds and its ilk). And chances of discovery on these markets is slim. The internet has been around for a lot longer than the smart phone, and there is a lot more innovation going on there.

    And hey if you make a really good game, get on Steam, and get picked up in a sale, who knows ;)
  • All this talk of 1-man-teams and mobile and innovation kinda makes me feel like there's a lack of understanding of the indie scene... Small teams pushing out innovative games is nothing new. Large teams pushing out innovative games is also not new, just like small teams pushing out totally crap games isn't new either.

    Look, generalising with little data isn't a great idea. Build games, then study how people play those games to find out the best ways to earn a living with them. If people don't enjoy playing them, you're not going to sell them. If people enjoy playing them for a short period, don't try to use a free-to-play model. If people like coming back time and time again, see if you can figure out expansions. The best thing you can do is prototype and put your game in front of people to figure out everything from your market to your business value. If you start out with preconceived notions, you're not going to be able to act on the real opportunities.
    Thanked by 2Karuji TheFuntastic
  • Why did this turn into a mobile is better discussion? There's room for all kinds of games. Budget and genre doesn't conclusively say that they'll be good or not, or whether I'd like them or not, nevermind whether they'll be successful or not with more than just me.

    I was alluding to the fact that big budget games require expensive prices, just as cheap games need tools of marketing which $1 price is one of.
  • @Karuji - are you saying that Steam is not a saturated platform? Can you please elaborate why you would prefer this to mobile.

    @dislekcia - Do you not think it's worthwhile to know your platform before attempting a game? For eg. my puzzle replica. If I was aiming to release this (obviously im not) I don't see the point of a platform like steam.

    Does platform not also determine what kind of games are made? I won't be playing FPS or classic RTS on mobile.

    Your point is noted though, making games which are fun is the primary focus?
  • I don't think anyone can write off FPS or RTS on mobile, if someone makes a good one that caters to the platform brilliantly, it'll get play. Autumn Dynasty I hear is a VERY good iPad RTS. If I were into RTSs I'd check it out. Faux Halo (NOVA) is big on mobile. Maybe you won't play it but many will and have.

    Platform determines the game - there's no mouse on mobile and there's no touch on desktop. So what? It determines what a game can do mechanically, but it doesn't determine what kind of game it can do :)
  • @Tuism an expensive mobile game game can still sell for $1 with the hope of enough people buying it to recoup the expenditure on the game's development, but normally there will be some sort of marketing to go along with that.

    Budget and genre can mean nothing. There are a good many people who think Diablo III is crap when Diablo is the game that basically founded the Action RPG style (substitute genre for style.)

    @Tachyon

    Are there a lot of games on Steam: yes.
    Can one easily get exposure on Steam: not all the time.
    Is it saturated: no.

    Steam is a gated platform. You have to be 'worthy' to enter it, with Android and iOS I simply pay my dev fee and I can pop as much crap onto the market and hope I make money. I can do that with Steam. I can also get good exposure with Steam sales which can lead to more people knowing about my game and an increase in revenue, besides from the revenue from the sale itself.

    But to answers the saturation question. There are an order of magnitude less title on Steam than there are on Android or iOS.

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    Also what @dislekcia said 100 times over.
  • I don't understand what you're trying to say about games and prices and genres, so I'll assume you agree to disagree or agree to agree that there's not much point talking about price as a stand alone factor in game dev. And genres being a non-point when it comes to platforms :)
  • The tl;dr would be price is not indicative of quality, and genre has nothing to do with platform.
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