Cliffski's Blog

Self promotion is a weird thing. I remember that as a young teenager I was very very shy. I remained a bit like that right up until I started playing gigs in a heavy metal band. Its hard to pull off the meek shy thing when you want to be yngwie malmsteen. I once read that metal leads guitarists were basically a mashup of musicians and strippers. Presumably only in the area of arrogance, and maybe leather trousers. Anyway…

What being a guitarist taught me is that people in ‘showbiz’ are so pushy and full of themselves that even people with no ability act like they are gods. So if you have actually knuckled down and learned to play guitar well you had to be AT LEAST as arrogant as them. Its not something that sits easily with a naturally shy English guy, but I tried. Anyway, here I am twenty five years later running a company and realizing that the public face of that company (me) is generally represented by five year old photos of me holding knives, bows or cats, and he really should get someone to take proper photos like these…

Which is kinda cheesy and embarrassing and probably necessary all at once. At least I didn’t do that typical tech CEO bullshit thing of having some photographer lie on the floor and take a pic of me next to a skyscraper. I think I have a long way to go before I reach ‘candidate on the apprentice’ levels of deranged self-belief, so thats good.

My accountant (jeez that feels weird to type) recently said ‘as your business has grown to a considerable size’ in an email, and it made me stop and think and go ‘yeah, I guess it has’. You don’t get a marching band show up at your door when your sales reach a certain level, all you get is a bigger tax bill, so its easy not to notice this sort of thing going on.

Anyway. I have proper photos now. I still cringe a bit looking at them, but if I didn’t do that I wouldn’t be British.

A few days ago I saw an article about Star Wars Battlefront, saying its out this week. With super-slow ADSL, I wanted to start preloading, so went and ordered it right away. I think it was £50. That is about $80. For a digital game. Thats not a season pass, all I get for that is just one game. And it’s $80. Did I mention the $80?

How can a company in 2015 justify $80 for a game (standard edition) when so many indies struggle to get $9.99 for theirs? The answer is a combination of ‘brands’ and ‘animal spirits’. Animal spirits is a term by an economist which describes how in many ways we can be irrational and illogical. Its often a term thrown around on the stock market to explain all the irrational buying and selling that goes on when the fundamentals of a stock have not changed. Its basically people thinking with their emotions, and we do it a LOT with brands. You can even see it in brain scans.

You see animal spirits at play with purchasing decisions most obviously with big brands. Half Life 3 is available for download right now. It’s $100. Add to basket? y/n?. of course you do, how could you not, its HALF LIFE THREE. The same is true for Star Wars Battlefront, Fallout 4, the next (inevitable) COD game, and so on. I bet a lot of people do not even look at the price, especially if the marketers can generate a ‘rush’ mentality like they do with concert tickets, where you do not DARE waste time asking if 1direction tickets should cost that much, you must BUY IT NOW.

We probably underestimate the extent to which this sort of behavior works, as a business strategy. Lets take the example of a product that costs $10 to make, and sells for $11. Thats great, we are in profit! (obv. its not a digital product in this example). If we can spend a STUPIDLY BIG amount of money on that product to make it a ‘must have’ then we can actually charge $20 for it. We haven’t multiplied the profit by a bit, but by 900%. Even if we are spending an insane $5 PER ITEM to market it, we are still making 400% the profit we used to make.

I think there may be a ‘tipping point’ where the steam discussions about ‘is it worth getting full price’ basically evaporate. Very few people will wait for Half life 3 to be in a sale, or a PWYW bundle. Ditto the other games listed above. The trick is to have the confidence in your product (and a good enough product to warrant it), to try and push your game into that area.

Now you probably think thats bullshit, and impossible for indies because we do not have anything close to the required scale. True, we cannot make our game as *generally* desirable as Battlefront or HL3, but can we make it desirable within its niche? Can you hype up, promote and generate buzz enough about your game within its niche so people are excited on launch day and MUST HAVE IT NOW? Big Pharma was very popular on release day, people really wanted it, and paid full price for it. It can be done.

I think a lot of us could do it. I think most of us (including me) wimp out, with our fingers hovering over the ‘buy advertising’ button thinking ‘Jesus what if this is a waste of time’. I would like to make Democracy 3:Africa and Shadowhand absolute ‘MUST BUY’ products on their release dates next year.  Lots of work ahead…

…although people seem to be pricing them like they are. Which is kinda weird. I’ve seen games listed for $0.10. Thats kinda…desperate, and its either a signal that the game is an absolute botched together clone of something simple and generic, or it shows that the developer isn’t aware that games are not commodities.

About a week ago, Anno 2205 came out, and I bought it right away (in fact I even pre-ordered it, based on my like for 2070). The price of the game is interesting. here is steam spy…

So…no launch discount, a price of $60.00, and so far about 40,000 owners (clearly more off-steam as well). So thats $2.4 million, so take 70% and it means 1.68 million. IO don’t know the games dev costs but I’m guessing its not stratospheric. A few million? hard to tell, but I think its safe to say the game will be a decent retrun on investment.

Ubisoft know that Anno is Anno, and other games are not Anno. If I look at the strategy new releases chart on steam…

Ok, so no denying age of empires is cool, but a bit…old, and mini metro might be fun. One of them is DLC and I’ve never heard of the others. This isn’t my point though, my point is, I could buy the entire newly released top ten strategy games for less than the price I paid for Anno, and yet…I bought Anno. Judging my sales charts, so did everyone else.

Games (good ones) are not commodities. I don’t *need* to price Democracy 3 to compete with those 10 games listed there because they are NOT competition. Big Pharma is still priced at full price because it pretty much has no competition. There are *similar* games, sure, but there are *similar* games to Anno, but they are *not* the same.

Stop pricing games like you are selling a generic commodity. You aren’t.