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Pricing Trends in Video Games Game Supply Academy, February, 2009.
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Transcript of Pricing Trends in Video Games Game Supply Academy, February, 2009.
Pricing Trends in Video GamesGame Supply Academy, February, 2009
EEDARAbout EEDAR
Founded in 2005 Goal to Increase Profits for the Video Game Industry:
– More Efficient Development– Informed Risk-Taking & Decision-Making– Higher Margins on Games
Supply three core service types:– Analytical (Projections, Feature Analysis)– Informational (Custom Research, Trending)– Analyst (Buy/Sell Side, IR, VC, Fund Managers)
Games DatabaseEEDAR Games Database
More than 3 Years In DevelopmentTrack up to 15,000 Attributes per Title
Over 5,000 Titles Analyzed, 5 million+ data pointsGame Data is Hand Collected by EEDARStrict Adherence to Objective Analysis
Stringent Quality Control MeasuresThird Party Data Integration (Review Scores, Marketing Spends, Sales Data, etc.)
CLASSIFICATION
PLAYERS & NPCS
GAME WORLD
ACTIONS & COMBAT
ECONOMY & REWARDS
STORY & CONTENT
SOCIAL INTERACTION
GAME CONTROL
LEGAL
Reporting ServicesPowered by Dataset
Analysis of Historical Games Sales Data & Other Metrics
Pricing: Historical Perspective
Year 1 to Year 6 Change:
6th Generation: -19%
Year 1 to Year 4 Change:
6th Generation: -16%PS3/Xbox 360: +6%
Games DatabasePricing: Current Generation
Year 1 to Year 4 Change:
6th Generation: -16%7th Generation: -8%
Year 1 to Year 6 Change:
6th Generation: -19%
Games DatabasePricing: Core Consumer Pricing
Quantity Percentage Increase From 2007 to 2008:
All PS3/Xbox 360 Games: +44%Games $59.99 or more: +38%Games Under $59.99: +66%
Games DatabasePricing: Core + Casual Consumer Pricing
Pricing: Summary
Higher price points on the PS3 and Xbox 360, titles with peripherals, and special edition SKUs have raised the average initial MSRP since 2005.
More peripheral titles, special edition SKUs and the effects of inflation has caused a 28% increase comparing the 6th and 7th generation game titles at the four-year mark in the generation’s lifecycle.
Predominant increase in industry revenues tied to this increase in initial MSRP and overall ASP.
Data indicates initial game prices are declining.
The average initial MSRP in 2009 could flatten or fall in 2009.
Median is already falling across all 7th generation home consoles (Wii/PS3/Xbox 360).
Median initial price point on the Wii is now $39.99 compared to $49.99 in 2007.
Current prices aren’t going anywhere: premium games still fetch premium prices.
Publishers/Retailers should pay close attention to initial MSRP’s at the portfolio level to meet financial goals.
Consider alternate ways to resell older titles: Box Sets, Award Editions, DLC, Accomplishment Tie-Ins, Retailer Promotions
Product Roadmap
Thanks for listening!
Electronic Entertainment Design and Research
Greg ShortExecutive [email protected] x 102www.eedar.com
Questions? Please email me: [email protected]
Presentation available at www.eedar.com/gamesupply09
