Steam sales "cheapen intellectual property" says EA Origin boss

[xSkyDrAx]

Target and Nordstrom should both sue him for using that awful analogy. There's no value added if you bought the same pair of chucks (assuming they both sold it) for $20 at Target or for $50 at Nordstrom. It's not like it magically becomes made of unicorn hide and baby seal fur when it comes out of Nordstrom.

The game doesn't magically become better or bug free because you pay more.

 

[rivan]

We've got to continue to make the service better, dramatically better, and stickier, on a quarter by quarter basis throughout this entire fiscal year"

Is it any wonder why it sucks?

EVERY SINGLE DECISION is based on "how can we make the most fucking money from this?" and decisions made under that criteria are usually only right in the very short term, if ever.

 

[Gordon Freemen]

I would take the opposite view and say EA is trying to overvalue intellectual property..or even worse, price fixing.

They can do as they want, let the market sort it out.

In this situation the "market" will not sort EAOrgins out because you have to remember how many unwitting "kids" don't understand or give a fuxx about EA games shady practices they just want to play BF3 ect. Not enough people are boycotting BF3 like I did nobodies boycotting EA Origins like I am and until we all learn of the power that we hold by way of "Consumer Advocacy" this whole world will continue to be run by douche bags like EA games and far worse Halliburton ect. One Dollar = One Vote

 

[FalconHorse]

I love his retail analogy of Target vs. Nordstrom and associating the later with "good" value. How often do you shop at Nordstrom and find value?

Yeah, that made me laugh.

 

[PowerYoga]

nordstrom rack has some good deals.

back on topic: lolorigin

 

[darkewaffle]

You're an idiot. Do you even think before you post?

He's actually not far off base. A matter of months after SWTOR came out you were seeing special deals on it for $20 off or $30 off and there were definitely comments regarding "Oh it's on sale already, look how poorly that must mean it's doing" which is bad for your mindshare.

Price does more than just reflect how much you have to pay for a product, price is also a marketing tool that affects expectations and perceptions.

I remember an economics professor of mine used sunglasses as an example. Take a pair of sunglasses, put them on a convenience store rack and put a big yellow sticker on them that says $1.99. When a customer sees those, what does he think about those sunglasses?

Cheap, poorly made, bad brand, won't last long, won't work well, will look bad, etc.

Take the same pair of sunglasses, put them on display at Saks 5th with signage to "Inquire about pricing" and what might the customer think then?

Expensive, classy, glamorous, looks cool, I can't afford them but I'd like them.

"People do not just say they enjoy expensive things more than cheap ones. They actually do enjoy them more", if Origin wants to improve their service's experience and differentiate it from Steam then perception is one avenue for it. It's too early in the platform for it to be appreciable, but with it's slick white interface and clean look, a few years down the road Origin could be perceived as the "Apple" to Steam's "Acer".

 

[Mr. Pedantic]

He's actually not far off base. A matter of months after SWTOR came out you were seeing special deals on it for $20 off or $30 off and there were definitely comments regarding "Oh it's on sale already, look how poorly that must mean it's doing" which is bad for your mindshare.

Price does more than just reflect how much you have to pay for a product, price is also a marketing tool that affects expectations and perceptions.

I remember an economics professor of mine used sunglasses as an example. Take a pair of sunglasses, put them on a convenience store rack and put a big yellow sticker on them that says $1.99. When a customer sees those, what does he think about those sunglasses?

Cheap, poorly made, bad brand, won't last long, won't work well, will look bad, etc.

Take the same pair of sunglasses, put them on display at Saks 5th with signage to "Inquire about pricing" and what might the customer think then?

Expensive, classy, glamorous, looks cool, I can't afford them but I'd like them.

"People do not just say they enjoy expensive things more than cheap ones. They actually do enjoy them more", if Origin wants to improve their service's experience and differentiate it from Steam then perception is one avenue for it. It's too early in the platform for it to be appreciable, but with it's slick white interface and clean look, a few years down the road Origin could be perceived as the "Apple" to Steam's "Acer".

The thing with the glasses isn't quite the same because you can't verify that the $2 glasses are exactly the same as the $200 glasses. But who would pay $60 for a game that's on sale for $20 on Steam that's exactly the same? I've heard about the study that shows that people enjoy expensive things more than cheap things just because they're more expensive; I'm going to make a hypothesis that it all goes completely out the window when people realize that they could have gotten an expensive product for cheap (which is what will happen on the internet).

 

[Gordon Freemen]

The thing with the glasses isn't quite the same because you can't verify that the $2 glasses are exactly the same as the $200 glasses. But who would pay $60 for a game that's on sale for $20 on Steam that's exactly the same? I've heard about the study that shows that people enjoy expensive things more than cheap things just because they're more expensive; I'm going to make a hypothesis that it all goes completely out the window when people realize that they could have gotten an expensive product for cheap (which is what will happen on the internet).

I like getting an unreal deal on expensive MSRP items and only a mentally deficient person with an addiction to spending and buying up junk would think otherwise LOL. Some people wonder why this world is fucked up and those same people are the same one whom do not understand about "Consumer Advocacy".

 

[ImpulsE69]

You could
argue that a game such as Skyrim which has barely ever went on sale at Steam is doing just fine. It's been on sale cheaper other places and people still buy it on Steam at full price.

What EA is proposing is that it's games will only be available on Origin so that there is no competition, but there will always be competition of other more affordable games. They are trying to use the mindset that all games should be 1 price regardless of quality and length.

PS the sunglasses analogy just doesn't work because software products are not mass produced and not "knock offs". It IS the same item whether you pay $5 or $100. The similarity is that peoples perception of value remains the same in that each persons perception of value and what is good is different. One of the same reasons you can't get refunds on software just because you think it sucks.

 

[Gordon Freemen]

He's actually not far off base. A matter of months after SWTOR came out you were seeing special deals on it for $20 off or $30 off and there were definitely comments regarding "Oh it's on sale already, look how poorly that must mean it's doing" which is bad for your mindshare.

Price does more than just reflect how much you have to pay for a product, price is also a marketing tool that affects expectations and perceptions.

I remember an economics professor of mine used sunglasses as an example. Take a pair of sunglasses, put them on a convenience store rack and put a big yellow sticker on them that says $1.99. When a customer sees those, what does he think about those sunglasses?

Cheap, poorly made, bad brand, won't last long, won't work well, will look bad, etc.

Take the same pair of sunglasses, put them on display at Saks 5th with signage to "Inquire about pricing" and what might the customer think then?

Expensive, classy, glamorous, looks cool, I can't afford them but I'd like them.

"People do not just say they enjoy expensive things more than cheap ones. They actually do enjoy them more", if Origin wants to improve their service's experience and differentiate it from Steam then perception is one avenue for it. It's too early in the platform for it to be appreciable, but with it's slick white interface and clean look, a few years down the road Origin could be perceived as the "Apple" to Steam's "Acer".

To put it in a logical way Steam does not get my money until there games go on sale. EA will never get my money unless they put there games back on Steam and they go on sale. Consumer Advocacy FTW !

 

[Phokus]

He's actually not far off base. A matter of months after SWTOR came out you were seeing special deals on it for $20 off or $30 off and there were definitely comments regarding "Oh it's on sale already, look how poorly that must mean it's doing" which is bad for your mindshare.

Price does more than just reflect how much you have to pay for a product, price is also a marketing tool that affects expectations and perceptions.

I remember an economics professor of mine used sunglasses as an example. Take a pair of sunglasses, put them on a convenience store rack and put a big yellow sticker on them that says $1.99. When a customer sees those, what does he think about those sunglasses?

Cheap, poorly made, bad brand, won't last long, won't work well, will look bad, etc.

Take the same pair of sunglasses, put them on display at Saks 5th with signage to "Inquire about pricing" and what might the customer think then?

Expensive, classy, glamorous, looks cool, I can't afford them but I'd like them.

"People do not just say they enjoy expensive things more than cheap ones. They actually do enjoy them more", if Origin wants to improve their service's experience and differentiate it from Steam then perception is one avenue for it. It's too early in the platform for it to be appreciable, but with it's slick white interface and clean look, a few years down the road Origin could be perceived as the "Apple" to Steam's "Acer".

I, and many others, bought Deus EX: HR for $7 (or $10, IIRC) when it went on sale. We didn't go, 'well, it must be a shit game, but it's cheap', we went, 'holy shit, i can't believe we got this fucking awesome game for that cheap. And it was a fucking awesome game (except for maybe the ending).

 

[Dankk]

I, and many others, bought Deus EX: HR for $7 (or $10, IIRC) when it went on sale. We didn't go, 'well, it must be a shit game, but it's cheap', we went, 'holy shit, i can't believe we got this fucking awesome game for that cheap. And it was a fucking awesome game (except for maybe the ending).

Those are my thoughts on DE:HR precisely. I bought it for $7, expecting to maybe play it for 2 or 3 hours and forget about it. Instead I was blown away. It's now one of my favorite games of 2011, even though I didn't play it until 2012.

Good thing for Eidos Montreal, I might actually buy the next Deus Ex game at full price because of that experience.

 

[borisvodofsky]

Steam's strategy is to cultivate an impulse buying habit in everyone. This way, we become highly addicted to instant gratification. It starts with cheap games, that we don't really think much about, but eventually, we're throwing $50 at them like it's nothing in a few years.

You might not know this, but they hire legitimate psychoanalysts to trap people like casinos do.

They're after your money every bit as much as EA.

There's no point in arguing who's got the best approach at taking all your money.


Take a step back before every purchase... really think about it......

 

[Red Storm]

They're after your money every bit as much as EA.

Except they are less expensive. So Steam wins.

 

[darkewaffle]

The thing with the glasses isn't quite the same because you can't verify that the $2 glasses are exactly the same as the $200 glasses. But who would pay $60 for a game that's on sale for $20 on Steam that's exactly the same? I've heard about the study that shows that people enjoy expensive things more than cheap things just because they're more expensive; I'm going to make a hypothesis that it all goes completely out the window when people realize that they could have gotten an expensive product for cheap (which is what will happen on the internet).

So when you buy something on Steam but then see it cheaper at Amazon or GMG or any of the other services, does your enjoyment of it decrease, or rather 'go out the window'?

To measure value much more complex than simply "product / price". Convenience, service, exclusiveness, presentation, perception, marketing, security, and numerous other factors are all rolled up into what a person believes to be 'aggregate' value and each person holds each factor in a different regard. In the OP, it sounds like they want Origin to appeal to the people who place emphasis on presentation and perception. People who buy Apple products, people who shop at Saks 5th, people who buy fancy coffee, etc.

 

[sigurros81]

He's actually not far off base. A matter of months after SWTOR came out you were seeing special deals on it for $20 off or $30 off and there were definitely comments regarding "Oh it's on sale already, look how poorly that must mean it's doing" which is bad for your mindshare.

Price does more than just reflect how much you have to pay for a product, price is also a marketing tool that affects expectations and perceptions.

I remember an economics professor of mine used sunglasses as an example. Take a pair of sunglasses, put them on a convenience store rack and put a big yellow sticker on them that says $1.99. When a customer sees those, what does he think about those sunglasses?

Cheap, poorly made, bad brand, won't last long, won't work well, will look bad, etc.

Take the same pair of sunglasses, put them on display at Saks 5th with signage to "Inquire about pricing" and what might the customer think then?

Expensive, classy, glamorous, looks cool, I can't afford them but I'd like them.

"People do not just say they enjoy expensive things more than cheap ones. They actually do enjoy them more", if Origin wants to improve their service's experience and differentiate it from Steam then perception is one avenue for it. It's too early in the platform for it to be appreciable, but with it's slick white interface and clean look, a few years down the road Origin could be perceived as the "Apple" to Steam's "Acer".

The example that you learned about in economics class is all fine and dandy, but a pair of sunglasses on a store rack is not the same as a video game that you can purchase through Steam. Scroll down a bit in Steam and you see Metacritic scores, do a google search and you can find out anything about that video game, most importantly, the copious amount of user reviews.

These days and age, I can see how pricing will affect perception in superficial/glamour/fashion products, but it does not ring true at all for video games, which is more about demand than perception. Look at COD, these games stay pretty high in price for years because people keep buying them. Why do developers lower prices? Because they know with a lowered price, they could get additional sales when their games are not selling as well.

You say people enjoy more expensive things, that's complete bullshit if you're talking about video games. LOL. I'm guessing you didn't do too well in your economics class.

 

[Phokus]

Steam's strategy is to cultivate an impulse buying habit in everyone. This way, we become highly addicted to instant gratification. It starts with cheap games, that we don't really think much about, but eventually, we're throwing $50 at them like it's nothing in a few years.

You might not know this, but they hire legitimate psychoanalysts to trap people like casinos do.

They're after your money every bit as much as EA.

There's no point in arguing who's got the best approach at taking all your money.


Take a step back before every purchase... really think about it......

Well, if you have self control (i'd like to think i do), clearly the steam way is better for consumers.

There are some crazy people who buy games left and right when those sales hit though.

 

[Wardawg1001]

I'd pay a 25% markup for most games just for the sake of getting it from Steam instead of EA. Partly because Origin is such an ugly, slow, poorly designed piece of shit, and partly because I just hate EA.

 

[BladeVenom]

I love his retail analogy of Target vs. Nordstrom and associating the later with "good" value. How often do you shop at Nordstrom and find value?

How often do you find high quality products at EA?

EA is no Nordstrom. Nordstrom stands behind the quality of the products they sell. If you aren't satisfied with the quality of a product from Nordstroms you can return it. Is EA going to accept returns of poor quality games? A high end store would.

 

[darkewaffle]

I, and many others, bought Deus EX: HR for $7 (or $10, IIRC) when it went on sale. We didn't go, 'well, it must be a shit game, but it's cheap', we went, 'holy shit, i can't believe we got this fucking awesome game for that cheap. And it was a fucking awesome game (except for maybe the ending).

That's because before you even looked at the price you already had a positive perception of the game from reviews, marketing, critical reception and so on and so forth; so when you saw the price was below what you actually expect the game to be worth, it prompted the buy. I think it remains to be seen whether this behavior results in a greater shift towards "Good games are only worth $10" versus "I like that game so I'm going to buy the others". Anecdotally you see both sides quite often on this forum at least.

Given the prolific review culture video games enjoy, I would actually say price does not have as significant an impact on perceived value as it does in other markets; such as, say, clothing and food. But that may also just be my perspective as an 'insider', as the power of value from perception and presentation increases as experience/knowledge decreases. And the power of price influencing value decreases as knowledge increases.

But still, turn the tables however and find random game Q that you have no pre-conceived opinion of that costs $7 and I doubt you would have high expectations, with the price playing a significant role in that.

 

[Gordon Freemen]

How often do you find high quality products at EA?

EA is no Nordstrom. Nordstrom stands behind the quality of the products they sell. If you aren't satisfied with the quality of a product from Nordstroms you can return it. Is EA going to accept returns of poor quality games? A high end store would.

LOL There are no stores in Canada that I have noticed that accept a return on an opened DVD box. That being said the Internet allows people to make extremely informed consumer choices so the onus is on the consumer to do the research before making the purchase.

 

[ImpulsE69]

Percieved value of games is decreased by the simple fact that you cannot return them if dissatisfied.

This is why they do not compare to food, clothing, etc.

 

[Wardawg1001]

That's because before you even looked at the price you already had a positive perception of the game from reviews, marketing, critical reception and so on and so forth; so when you saw the price was below what you actually expect the game to be worth, it prompted the buy. I think it remains to be seen whether this behavior results in a greater shift towards "Good games are only worth $10" versus "I like that game so I'm going to buy the others". Anecdotally you see both sides quite often on this forum at least.

Given the prolific review culture video games enjoy, I would actually say price does not have as significant an impact on perceived value as it does in other markets; such as, say, clothing and food. But that may also just be my perspective as an 'insider', as the power of value from perception and presentation increases as experience/knowledge decreases. And the power of price influencing value decreases as knowledge increases.

But still, turn the tables however and find random game Q that you have no pre-conceived opinion of that costs $7 and I doubt you would have high expectations, with the price playing a significant role in that.

Most people who spend even an hour or two a week playing games know enough by now to research games through critic reviews, user reviews, forum opinions, etc. It seems to me the only market for this "Nordstrom of gaming" crowd are dunces who've never bought a game in their life.

 

[sigurros81]

Another point I would like to add to the debate--price does not indicate the quality of the game. My example, I paid full price for Mass Effect 2 when the game came out, because it got so much hype for being a great game. After playing the game, I wished I would have waited for a Steam sale because ME2 was not that great.

Here are a few other games that I paid for that is not worth the full price:
-Civ 5
-COD Black Ops
-Need for Speed Hot Pursuit

Games that I paid for through a Steam sale that have given me hundreds of hours of play time, too many to list but here are a few:
-Just Cause 2 (I would have easily paid for this game full price if I knew it was this good when it first came out).
-Dungeon Defenders
-Deus Ex:HR
-Fallout: New Vegas
-Civ4 (I paid for this full price when it first came out, but thought I'd buy it again on Steam for easy access)

Now, what do you think of your argument that price affects people's perception of quality?

 

[Red Storm]

It seems to me the only market for this "Nordstrom of gaming" crowd are dunces who've never bought a game in their life.

And EA execs.