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Activision Defends Modern Warfare 2 Pricing

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News Room Contributor
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Activision Defends Modern Warfare 2 Pricing

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Activision has defended its decision to increase the price for Modern Warfare 2 in the U.K., saying the game offers value for money even at the higher price point.

Activision revealed in July that Modern Warfare 2 will launch at £54.99 (roughly $90) when it's released in the U.K., £5 more than "regular" Xbox 360 and PlayStation 3 releases. Consumers were less than thrilled with the news, of course, and industry analyst Michael Pachter predicted the hike was a "one-time test" to see how consumers would react.

But the company says it's confident that the higher price won't have a negative impact on sales and that the game will pack enough bang for the buck that players will come away satisfied. "The question is what represents value for money," Activision U.K. Managing Director Andrew Brown said. "At the end of the day, there is a spectrum of what people can afford and what people are prepared to spend. These things are key. Is what I am buying supplying me sufficient value for money and can I afford it? If so then I will buy it."

"This is an industry where things cost a lot to develop and it's a risky business. We talk about building franchises; it is very expensive to do this from every respect. What we are finding is that for the right products, if you look at the time someone will spend playing something and compare it to something else, people are saying it's worth it," he continued. "There's nothing in life that isn't price elastic. Price at retail changes all the time depending on how successful a product is or isn't. I think there is a lot of controversy over I don't know what."

I'm not sure I see what the controversy is about either. The idea of "standard" game prices strikes me as rather odd; it's far more natural that different games with different production costs (and different degrees of avarice at the companies behind them) would result in different prices for each product. It's an easy practice to decry when Activision is responsible but when all is said and done, the math is pretty simple: If it's too expensive, people won't buy it; if people buy it, it ain't too expensive.

Source: MCV UK

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Paperboy
Posts: 44
Joined: 10 Aug 2009

Fir- *Gunshot*

Hey, this is what capitalism is all about. Like democracy, it's a horrible system... except for all the other ones.

On the Record
Posts: 6521
Joined: 27 Mar 2009

I'm still a bit annoyed at the price rise, but if I can get and hour for every ($£) I spend, I'm happy.
And I'm confident that I can get that value from it.
but Bobby Kotick will be on my Hate list if it happens again... alongside Bungie if it doesn't give me and my friends our damn achievements.

On the Record
Posts: 6403
Joined: 14 Sep 2008

*2 weeks after the PC release*

"We are very surprised, there were hundreds of thousands of illegal copies all over the Internet, same as with Sims 3, but we didn't get much sold copies... PIRACY IS TO BLAAAMEEE!!!!"

Infamous Scribbler
Posts: 604
Joined: 13 Dec 2008

damn it ive already reserved it expecting it to be £45

Gone Gonzo
Posts: 2550
Joined: 27 Apr 2009

Heh, I'm still waiting a few weeks and buying preowned. Actually, I might go out of my way to pirate it...

Gone Gonzo
Posts: 1385
Joined: 10 Jan 2009

SachielOne:
Fir- *Gunshot*

Hey, this is what capitalism is all about. Like democracy, it's a horrible system... except for all the other ones.

What's that "all the other ones" quote from? it's been killing me for weeks.

Infamous Scribbler
Posts: 700
Joined: 25 Apr 2009

Trailer looked good... was gonna buy it, despite not liking the one before.

They can go fuck themselves now.

On the Record
Posts: 6582
Joined: 21 May 2009

So what they are saying is that if people buy mw2 because they think it's worth the money , other games they make will vary in price? What if the game isn't worth the money will they decrease the price?

Gone Gonzo
Posts: 1070
Joined: 13 Mar 2009

Fuck modern warfare 2. Yes it looks good but am I going to pay 60 quid for the bloody thing? No. I'm perfectly happy with Operation Flashpoint 2 which is out on Wednesday (Tomorrow for the US).

On the Record
Posts: 5293
Joined: 25 Feb 2008

To be honest Activision's srp is irrelevant.

The major supermarkets and retailers like HMV, Game and co are going to immdeiately drop into a price war with a release as big as this. Just look at what's going on with Fifa 10 and consider this is an even bigger release than that.

I'd be very surprised if this game actually sells for more than two thirds of the srp.
Personally I hope MW2 gets the accolade of most pirated game 2009, it would be all Ko-tic deserves.

Paperboy
Posts: 44
Joined: 10 Aug 2009

Cortheya:

SachielOne:
Fir- *Gunshot*

Hey, this is what capitalism is all about. Like democracy, it's a horrible system... except for all the other ones.

What's that "all the other ones" quote from? it's been killing me for weeks.

It's a quote by British Prime Minister Winston Churchill. The original quote is as follows:

"Many forms of government have been tried and will be tried in this world of sin and woe. No one pretends that democracy is perfect or all wise. Indeed, it has been said that democracy is the worst form of government, except for all the others that have been tried from time to time. - Winston Churchill, 1947

Gone Gonzo
Posts: 2495
Joined: 8 Apr 2009

£50?! Blimey, I didn't know it was that much...

Infamous Scribbler
Posts: 548
Joined: 2 Mar 2009

Oh please. The whole "game is expensive to make so we must raise our prices" is total bs. Why? Because there is no way in hell that Modern Warfare 2 costs more to produce than the most expensive game ever, GTA IV (Only a 100 million budget!!!). And yet GTA IV costs as much as any other game, not more. Considering that Modern Warfare sold about as much as GTA IV, I find the whole price increase defense weak to say the least.

Gone Gonzo
Posts: 2005
Joined: 5 Feb 2009

GTA4 took about 100 million to make and did it cost more than any other game?

I expect the money allocated to create Modern Warfare 2 be at least 200 million. In my eyes, that's the only way it will justify such a high price.

(I bet the moment most people will say "Fuck it" and pirate the damn thing Activi$ion will immediately start blaming low sales on pirates. I'll smile the day they do that.)

Master Archivist
Posts: 9619
Joined: 22 Aug 2008

Uh-huh. That's a good tale you're spinning there Activision. There's just one issue:

Why only in the UK? If you're doing a one-time test to see how consumers react then more data=better results. Thus, logically, one would expect Activision to make it a global price hike.

But they haven't, have they?

*spit*

I'm getting mine pre-owned. They can spin as much as they like but I'll be damned to Niffelheim and back before I believe a word out of their mouth.

I'm not sure I see what the controversy is about either. The idea of "standard" game prices strikes me as rather odd; it's far more natural that different games with different production costs (and different degrees of avarice at the companies behind them) would result in different prices for each product. It's an easy practice to decry when Activision is responsible but when all is said and done, the math is pretty simple: If it's too expensive, people won't buy it; if people buy it, it ain't too expensive.

Again, this is fine. Obviously a movie tie-in game won't have nearly the production values of something like MW2, but what strikes me the worst about this is that it's UK only.

Pulitzer Laureate
Posts: 925
Joined: 3 Oct 2007

Abedeus:
*2 weeks after the PC release*

"We are very surprised, there were hundreds of thousands of illegal copies all over the Internet, same as with Sims 3, but we didn't get much sold copies... PIRACY IS TO BLAAAMEEE!!!!"

Well, if someone wants to play multiplayer (which is sort of the selling point of this game) then wouldn't they need a regular copy?

Infamous Scribbler
Posts: 515
Joined: 1 Jan 2009

They think it's worth more than what other new games retail at? Logically it would be better to sell it for LESS thus selling MORE.

Gone Gonzo
Posts: 2005
Joined: 5 Feb 2009

bue519:

Abedeus:
*2 weeks after the PC release*

"We are very surprised, there were hundreds of thousands of illegal copies all over the Internet, same as with Sims 3, but we didn't get much sold copies... PIRACY IS TO BLAAAMEEE!!!!"

Well, if someone wants to play multiplayer (which is sort of the selling point of this game) then wouldn't they need a regular copy?

Private servers

Gone Gonzo
Posts: 2422
Joined: 6 Mar 2008

bue519:
Well, if someone wants to play multiplayer (which is sort of the selling point of this game) then wouldn't they need a regular copy?

No. Even if the official servers can't be hacked, people will just play on private servers.

Gone Gonzo
Posts: 3671
Joined: 13 Jan 2009

Activision is a huge group of jerks... good thing im not living in the UK.

Pulitzer Laureate
Posts: 925
Joined: 3 Oct 2007

harhol:

bue519:
Well, if someone wants to play multiplayer (which is sort of the selling point of this game) then wouldn't they need a regular copy?

No. Even if the official servers can't be hacked, people will just play on private servers.

And just play with other pirates? All the time? I didn't realize pirates had such tight knit communities.

Muckraker
Posts: 295
Joined: 1 Jun 2009

I'll have Dragon Age to play, so screw Activision and MW2(even though it looks awesome)!

Press Junketeer
Posts: 395
Joined: 28 Aug 2009

Well, isn't this just a stupid move to make. The thing with videogames is that one particular game doesn't follow the conventional rules of supply and demand. The supply can never end, the demand can. Once MW2 is done, they can manufacture an infinite number of copies of it for a tiny fraction of what it cost to make the first one. So no matter what price tag you put on the game, there's always going to be a balance between the amount of people buying it, and the price they pay for it.

This is why it's a good idea for games to use a Pay What You Want promotion, or at least a variation on it. When you can find out the optimal price point where it's not expensive enough to fall beyond most people's budget, and where it's not cheap enough to have the developers making profit. If you price your game according to the average of what a serious gamer will pay for it, everyone is happy.

Master Archivist
Posts: 9619
Joined: 22 Aug 2008

bue519:

harhol:

bue519:
Well, if someone wants to play multiplayer (which is sort of the selling point of this game) then wouldn't they need a regular copy?

No. Even if the official servers can't be hacked, people will just play on private servers.

And just play with other pirates? All the time? I didn't realize pirates had such tight knit communities.

Ever heard the phrase "As thick as thieves"? :P

Infamous Scribbler
Posts: 565
Joined: 27 Sep 2009

Fuck that! I live in America and won't have to pay the equivalent of $90 (thank budda). But What the fuck is Activision thinking? I really feel bad for the folks over in the UK. Having to fork out that much money over one measley fucking video game? Even if it will probably garantee even more than enough entertainment for the price, that is still completely ludicrous!

Muckraker
Posts: 337
Joined: 19 Mar 2009

wait so its worth more for the uk because its worth it? HUH what kind of logic is that activision thats just a circular argument fools, sure i would understand if they just came out and said it that they were trying to get more money out of us because they think we are complete idiots, still would annoy me.

hell im not buying it, but ive been somewhat boycoting activision for a while now (even though it is somewhat childish) anyway (long story, mostly because they started being childish over a fan based game, but lets not get into that).

Press Junketeer
Posts: 475
Joined: 23 Jun 2009

It doesn't matter if you've been sensible and pre-ordered it online. Amazon, in particular makes you pay the price it was when you clicked the pre-order button. So even if it decreases in price, the nice people there will make you pay the lowest price or the original price you agreed to. Anybody buying it from the rip-off berks on the High Street deserves to be ripped-off.

And really, no game is worth £55.

Gone Gonzo
Posts: 1396
Joined: 24 Feb 2008

poncho14:
So what they are saying is that if people buy mw2 because they think it's worth the money , other games they make will vary in price? What if the game isn't worth the money will they decrease the price?

LOL
Of course they won't.
He said he finds the whole concept of 'standard pricing' to be strange, but notice how Activision's games never release below the industry standard?

Pulitzer Laureate
Posts: 859
Joined: 31 May 2009

Malygris:
Activision U.K. Managing Director Andrew Brown said. "At the end of the day, there is a spectrum of what people can afford and what people are prepared to spend. These things are key. Is what I am buying supplying me sufficient value for money and can I afford it? If so then I will buy it."

Better hope every 360 owner in the UK uses XboxLive a lot... then again...I guess UK purchasers did spend $85 for a 4 hour campaign...

Malygris:
I'm not sure I see what the controversy is about either. The idea of "standard" game prices strikes me as rather odd; it's far more natural that different games with different production costs (and different degrees of avarice at the companies behind them) would result in different prices for each product.

Movie theaters don't even do that...its all a fixed ticket price...

(watch people throw their arms in the air when prices go up for big budget blockbuster films...)

Gone Gonzo
Posts: 4089
Joined: 10 Nov 2007

I still feel a twinge when I pay £45.

£55 would be right out. I'd wait a month and get it second hand kthx (if I were going to at all, which I'm not, never been a fan of CoD).

Master Archivist
Posts: 9895
Joined: 10 Mar 2009

Christemo:
Activision is a huge group of jerks... Good thing I'm not living in the UK.

Exactly what I was thinking. But if they try and pull that crap over here. *Shakes fist*

Beat Writer
Posts: 172
Joined: 11 Dec 2008

I'm no economist expert, but I think the idea of paying for any product is to show appreciation to the person that designed the product. When I look around for a new game, I look up the information about it, trailers, reviews and if possible a demo of the game before deciding if I want to buy it. If I feel satisfied with all these tests before giving the money for the game, then I feel justified to showing my appreciation to the designers for making a wonderful game.

I'm not in the UK, but this whole thing sounds like hype for Modern Warfare 2 (MW2). "The game is worth the extra money folks! Trust us!" is what it sounds like Activision is saying, and I wouldn't believe that even if they did that stunt here in America. I swear Square-Enix did this when they just re-released "Chrono Trigger" on the Nintendo DS last year when all they added was a new ending and a (my opinion) god-awful side area. I think Square-Enix choose the $40 bucks for that game because of hype, and that is what I see now.

Gone Gonzo
Posts: 3412
Joined: 19 Mar 2008

EquinoxETO:
damn it ive already reserved it expecting it to be £45

It probably will be, it's cheaper if you pre-order it.

Pulitzer Laureate
Posts: 715
Joined: 25 Apr 2009

I am forced to say no shit. No shit they are defending their price raise. What do you expect? Hey we are bad people for raising our prices but we do it anyway. Sorry the title just made me laugh.

This was well inevitable. I am hoping nobody buys it just to smack them in the face but that wont happen. There are enough dense people out there with large hard ons ready to take a face full of jizzum for their beloved COD. I dont dislike cod, hell the story in Modern warfare was awesome and I play it semi-regularly which is doing it one better then most games. Although this is just a nice big excuse for them to start to progressively raise prices. In the end though I am expecting to see game prices going so high the buisness kills itself. Yay them.

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