The Good Health of the Wargaming Niche

Gamers can also use this forum to chat about any game related subject, news, rumours etc.

Moderator: maddog986

DBeves
Posts: 401
Joined: Mon Jul 29, 2002 5:11 am

RE: The Good Health of the Wargaming Niche

Post by DBeves »

ORIGINAL: Iain McNeil

Thanks for the psychological analysis. I'll let my doctor know so he can stop looking for something more serious :)

There is definitely a clear misunderstanding here.

We greatly value customer feedback. You only have to look at the forums and see all the things we've changed at the request of our fans - basically you guys on the forums. We really appreciate the feedback and ideas and suggestions. However every idea that you present is reviewed and while many get implemented because we agree they are good ideas, many do not. We use our judgement to decide which of the suggestions to go with, and our experience and knowledge of the games industry and 13 years running the largest strategy games publisher in the world to filter the wheat from the chaff.

So the basic summary is - we are listening to our fans. We trust them. We believe they are telling us what they think is best and have our best interests at heart.

But...

We do not agree on this point. Does this mean we're paranoid, arrogant and out of touch.

That is one way to interpret it, but it assumes we are wrong.

The other option is that we are right and this is best for our business and our developers. So we have 2 options
1) Follow a business plan based on 13 years of running a successful company and over 20 years in the games industry.
2) Follow a business plan based on what a journalist and our fans (none of whom to my knowledge have ever made a game or run computer game publisher) suggest because we don't have the guts to follow our beliefs.

I know which option I will be choosing :)

Exactlty - the ONLY arrogance apparent in this whole subject are those who continue to insist they know better - without ever actually having done anything at all in the industry. If any one needs a phsyche eval its those who continually ignore that fact as being the only one thats at all relevant to the argument.
Tomn
Posts: 148
Joined: Mon Apr 22, 2013 11:10 am

RE: The Good Health of the Wargaming Niche

Post by Tomn »

ORIGINAL: Iain McNeil

The other option is that we are right and this is best for our business and our developers. So we have 2 options
1) Follow a business plan based on 13 years of running a successful company and over 20 years in the games industry.
2) Follow a business plan based on what a journalist and our fans (none of whom to my knowledge have ever made a game or run computer game publisher) suggest because we don't have the guts to follow our beliefs.

I know which option I will be choosing :)

While I understand that you are responding primarily to what was not the best-planned message, I’m not entirely sure I agree with the reasoning here. If nothing else, the shape of the gaming industry has changed dramatically in 13 years. The market of 13 years ago, or even of five years ago, is very much not the market of today, and operates on a great many changed realities. While I am certainly not going to discount that experience entirely, some of your experiences can be said to be more pertinent to the present than others – and it isn’t at all impossible that your certainty in your earlier experience may cause some more recent changes to the market to slip under your radar.

But then again, it probably isn’t necessary to do more remind you of the possibility of error – after all, you are wargamers! Tales of how institutional confidence in tradition and experience ran afoul of emerging realities form some of the most dramatic moments of history. Who would know better the story of Prussia during the Napoleonic Wars, France during the Franco-Prussian War, and just about everybody in World War 1? More importantly, and more seriously, however, you already do seem to be making some tentative steps towards seeing if new strategies might work, such as Steam, tablets, or this aforementioned sale, which I fully applaud. Though I would personally prefer it if you approached these ventures with a more open mind, the fact that you are in fact trying to branch out this way is not particularly suggestive of a completely closed mind, as some have accused you of possessing. I sincerely hope (and expect!) that your new ventures will turn out to be far more rewarding than you had expected, and that you will thereby gain the knowledge to make your 14th and 15th years of experience something to truly remember in future times.
User avatar
Mobeer
Posts: 664
Joined: Wed Jan 17, 2007 7:59 pm
Contact:

RE: The Good Health of the Wargaming Niche

Post by Mobeer »

Op, thanks for the interesting post.

I do sometimes think that Matrix Games could do with trying to raise it's profile a bit.

- Steam downvotes do mean that at least someone noticed the product.
- I understand the retreat from retail sales in terms of profitability, but it does reduce the chance that someone will actually see the products.
- Demo's would help raise visibility.

How about bundling old games in sale periods? You mentioned Pride of Nations, which costs a lot more to buy alone from Matrix games than it does to buy the Military Strategies 2 compilation (currently £2.86 cheapest price). Matrix Games must have enough old titles to come up with a decent sales bundle.
User avatar
Jim D Burns
Posts: 3989
Joined: Mon Feb 25, 2002 6:00 pm
Location: Salida, CA.

RE: The Good Health of the Wargaming Niche

Post by Jim D Burns »

Man I hope Matrix doesn't cave to these posters screaming for price discounts like we see at sites like Gamers Gate or Steam. All I can say is the products Paradox (the only other real wargame competitor left out there) puts out are pure crap compared to most Matrix releases and there is one over-riding reason for it, their crappy business model that requires release deadlines be strictly enforced whether a game is ready or not. If they don't have new product to push 24/7 they will go under pretty fast because of it.

If you decide to try and turn your games into volume products dependant on huge sales numbers to have even a remote chance of breaking even, then you are forced to do the crap Paradox does in releasing buggy unfinished games and then charging users for the patches and game features that should have been part of the core game originally. You always get the feeling Paradox is teetering on the edge with their business model, and you never see them support a game once its finished its pre-planned support schedule of what, 3 patches max? HOI3 is a perfect example of an unfinished piece of crap they will never fix due to the fact they can't afford to as its already had its sales run and they need to move on to new product to keep the cash spigot open.

I have stopped buying Paradox games for the most part because of their business practices and would stop supporting Matrix if they were to follow suit. Wargaming has never been a mass appeal genre and never will be. Once you go down the road of Paradox you'll be forced to start having meetings about how to chop up games and release what you have now and finish the rest later just to keep the light bill paid. And releasing patches years after release will become just as impossible for you as it is for Paradox now.

Stick to what works, you've had great success in an industry that traditionally has seen dramatic failure whenever companies tried to be like the rest and move into the larger mass-appeal markets. Don't be baited by the penny pinchers who could care less if you are able to feed your kids or not. There are plenty of retail sites already out there selling the crap games that thrive in the business model they want to see, they can go to them.

I for one will always support companies like Matrix and AGEOD who want to make the games I enjoy playing. And I hope there are many others like me here silently listening to the whiners who want to shoot themselves in the foot by trying to convince you wargames can appeal to the masses just so they can save a few bucks on a game.

Jim
User avatar
jday305
Posts: 161
Joined: Sun Mar 31, 2013 10:43 am
Location: Northeast Indiana

RE: The Good Health of the Wargaming Niche

Post by jday305 »

I would have to agree with you Mr Burns especially on your opinion of Paradox games. I have ultimately been disappointed with their games I have bought from Steam.
ORIGINAL: Jim D Burns

Man I hope Matrix doesn't cave to these posters screaming for price discounts like we see at sites like Gamers Gate or Steam. All I can say is the products Paradox (the only other real wargame competitor left out there) puts out are pure crap compared to most Matrix releases and there is one over-riding reason for it, their crappy business model that requires release deadlines be strictly enforced whether a game is ready or not. If they don't have new product to push 24/7 they will go under pretty fast because of it.

If you decide to try and turn your games into volume products dependant on huge sales numbers to have even a remote chance of breaking even, then you are forced to do the crap Paradox does in releasing buggy unfinished games and then charging users for the patches and game features that should have been part of the core game originally. You always get the feeling Paradox is teetering on the edge with their business model, and you never see them support a game once its finished its pre-planned support schedule of what, 3 patches max? HOI3 is a perfect example of an unfinished piece of crap they will never fix due to the fact they can't afford to as its already had its sales run and they need to move on to new product to keep the cash spigot open.

I have stopped buying Paradox games for the most part because of their business practices and would stop supporting Matrix if they were to follow suit. Wargaming has never been a mass appeal genre and never will be. Once you go down the road of Paradox you'll be forced to start having meetings about how to chop up games and release what you have now and finish the rest later just to keep the light bill paid. And releasing patches years after release will become just as impossible for you as it is for Paradox now.

Stick to what works, you've had great success in an industry that traditionally has seen dramatic failure whenever companies tried to be like the rest and move into the larger mass-appeal markets. Don't be baited by the penny pinchers who could care less if you are able to feed your kids or not. There are plenty of retail sites already out there selling the crap games that thrive in the business model they want to see, they can go to them.

I for one will always support companies like Matrix and AGEOD who want to make the games I enjoy playing. And I hope there are many others like me here silently listening to the whiners who want to shoot themselves in the foot by trying to convince you wargames can appeal to the masses just so they can save a few bucks on a game.

Jim
RebelYell

"Those who don't know history are destined to repeat it."
“All that is necessary for the triumph of evil is for good men to do nothing.”
Edmund Burke
Alchenar
Posts: 359
Joined: Mon Aug 02, 2010 11:17 am

RE: The Good Health of the Wargaming Niche

Post by Alchenar »

I like how this '13 years of data and experience' line keeps getting trotted out despite the fact that it apparently doesn't include basic analytics like 'how long on average do our users spend playing a game?'
User avatar
wodin
Posts: 10709
Joined: Sun Apr 20, 2003 3:13 am
Location: England
Contact:

RE: The Good Health of the Wargaming Niche

Post by wodin »

Jim no one wants Steam like sales\reductions where they charge silly amounts for newish games..we are talking about games well past their shelf life.

Why do those who stick by Slitherine resort to name calling when myself and Tim Stone are trying to make a change that we think will benefit everyone...does that make us whiners or because we want to save some money and want things cheap? So far removed from where I'm coming from anyway...
User avatar
Jim D Burns
Posts: 3989
Joined: Mon Feb 25, 2002 6:00 pm
Location: Salida, CA.

RE: The Good Health of the Wargaming Niche

Post by Jim D Burns »

ORIGINAL: wodin

Jim no one wants Steam like sales\reductions where they charge silly amounts for newish games..we are talking about games well past their shelf life.

Why do those who stick by Slitherine resort to name calling when myself and Tim Stone are trying to make a change that we think will benefit everyone...does that make us whiners or because we want to save some money and want things cheap? So far removed from where I'm coming from anyway...

Complaining about prices is not constructive criticism when the company already laid out their reasons (something 99% of other companies would never do) for sticking with their business model, I can't think of anything else to call it except whining if you are not then ready to let it go.

They obviously still generate an acceptable revenue stream from their older titles which is what allows them to continue to support those titles many many years after release. I guarantee if they resorted to discounting their games 2 or 3 years after a title is released, the ability to support those same titles for more than a couple years max would vanish overnight, Paradox being the best example of this fact. Paradox has stated time and again there is no budget for more than 2 or 3 patches for a given game, if it isn't fixed by then it won't be getting fixed. Because of their business model they have to move on to a new product line.

The people at Matrix and their developers have families and mortgages just like the rest of us. I seriously doubt 100,000 sales of game X at $5.00 per game would keep a development house and the production team at Matrix in business for more than a year or two max. Not to mention the fact I seriously doubt they could sell 100,000 units of any of their titles even if they were severely discounted, Distant Worlds being a possible exception due to its crossover appeal.

Once a game has gone through a severe discount period, there are very few people left who would be willing to buy the game for a higher price again years later as we see now occurring with PON. Those who paid 1.50 for PON basically put the money in the pockets of the discounters and gave nothing to the men who did the actual work to bring that game into being. While I understand the urge to pay such a cheap price for a game, you did take food out of the mouths of those men and their families by not supporting them and buying it from their site at their listed price.

And because you enjoyed getting something for nothing from those men you now want to convince Matrix and all the other developers here that you should also be allowed to take food from them as well. If wargaming was mainstream like most other genre's out there I'd be the first one screaming for price breaks because they'd sell enough units to make discounting a viable business model. But years of experience in this hobby first with board games and now with PC games has taught me that anyone who tries to make wargaming work using a mainstream business model will fail in very short order.

Talonsoft is a perfect example. They were arguably the most successful early PC wargame publisher out there. Then they had one non-traditional wargame title (FPS title can't recall the name) sell hundreds of thousands if not millions of units and they tried to bring their business up to support the staff and warehousing such a success needed. They were out of business within a year or two having to sell out to Take 2 because there simply wasn't enough interest in the rest of their games (almost all were traditional wargames) to allow them to stay in the black.

They did try and move into games they were not experienced at developing, but they simply couldn't succeed in time to stay afloat. If memory serves they tried to develop some vampire FPS game and a RTS title, but their customer base revolted on them when they were told by Talonsoft that PC wargames were going to be different from now on. Translation: They couldn't keep the success going with traditional wargames.

Had Talonsoft been successful at crossing over to mainstream titles and were it still in business today, I doubt there'd be any more wargames on their roster of games offered. Wargames will never sell enough units to support a discount business model unless you shift your games quality to something that appeals more to the masses.

Paradox used to be a quality production house for wargaming, now they simply pump out garbage and come up with ways to sell the same garbage to their customers over and over. If they stuck with their titles long enough to get them working as intended I wouldn't be so negative on them, but the fact games like HOI3 will never be finished because they can't generate enough cash to support the work needed to fix it tells me their business model is not worth supporting no matter how cheap they decide to sell their garbage.

Even if Matrix has a bad release, I know from experience they will stick with it till they get it right. To me that's worth the higher price point any day of the week.

Jim
vonRocko
Posts: 1451
Joined: Tue Nov 04, 2008 12:05 pm

RE: The Good Health of the Wargaming Niche

Post by vonRocko »

ORIGINAL: wodin

Jim no one wants Steam like sales\reductions where they charge silly amounts for newish games..we are talking about games well past their shelf life.

Why do those who stick by Slitherine resort to name calling when myself and Tim Stone are trying to make a change that we think will benefit everyone...does that make us whiners or because we want to save some money and want things cheap? So far removed from where I'm coming from anyway...
I agree Wodin, you're one of the few who can see the trees despite the forest. I can't believe the comprehension skills of some posters. Heck some of them think this is all about PON!
User avatar
IainMcNeil
Posts: 2784
Joined: Tue Oct 26, 2004 10:01 am
Location: London
Contact:

RE: The Good Health of the Wargaming Niche

Post by IainMcNeil »

There is no bad feeling towards anyone who bought PoN at $1.50. I really don;t want people to feel guilty or that they cheated anyone out of anything. I think it was a bad business decision to sell at that price but it is the person setting the price who any angst should be directed at, not the customer buying it.

ORIGINAL: Vasquez

Wargaming is indeed a niche. The success of Panzer Corps means nothing since it is more or less a mainstream startegygame.

I am a supporter of the idea to lower the Prices of older titles of course. But would that get more blood into the genre? I doubt it. As someone mentioned take older SSG titles as example. They have fixed resolutions and they arent loooking very good on nowadays widescreen TFTs. Same goes for a lot older Matrix Games (Crown of Glory etc). I fear those games would scare more people away instead of broading the audience. Lowering the prices of those games would help us (wargaming geeks) but not the genre as a whole.

Two more interesting examples:

1. One year ago a retail gaming store (in germany) announced their cessation of Business. They had offered a half dozen boxed Version of Battles in Italy (German retail Version) for 1 (one) Euro each. 
One months later they had not sold one of them. So I bought them all and made a giveaway on my gaming site. We have some wargamers over there yes, but the majority are shooter fans (since 7idGaming is focused on e-sports and we are hosting servers for ArmaII and such games). Anyway. In short: No one wanted Battles in Italy. Neither for 1 Euro nor for free.

2. Some weeks ago a friend gave me five gamersgate keys for a almost brand new wargame. So I announced a contest again. The only requirement was to like the developers Facebook site. My article had 280 hits but only three guys were interested enough to like the page for a free copy.

The price alone does not turn average Jon Doe into a wargamer. 

This is fundamentally our point and matches exactly with the data we have. Price is not the issue here as some would have you believe. There is very little price elasticity in the demand curve beyond a certain point. We pick prices on a game by game basis that put it in the best position on that demand curve.

When I say we have 13 years of data - I don't mean we look at data from 13 years ago. I assumed that would be clear but just to clarify and avoid any confusion - I mean we look at the trends over 13 years and use them to predict the current and future trends.

The perception that old games are past their shelf life is misguided. We have games approaching ten years old that still generate revenues in the five to ten thousand dollars a month range. Sure, that's not all of them, and there are some older games that might benefit from a price drop but the assumption that these older strategy games do not sell is fundamentally flawed. What you see in other genres does not apply here for various reasons I wont go in to. I don't really know what more I can say. I'd like to convince you we are right, but it looks like I can't as you don't seem to believe anything we say. :)

The sad thing is it is we who are accused of not believing our fans! Oh the irony.... :)
Iain McNeil
Director
Matrix Games
User avatar
wodin
Posts: 10709
Joined: Sun Apr 20, 2003 3:13 am
Location: England
Contact:

RE: The Good Health of the Wargaming Niche

Post by wodin »

Well fair enough. I know I've upset some people over this issue...however the core motive behind it all was to benefit everyone..I will now accept that Tim and myself and any others who thought similar (and I'm not on about silly Steam pricing here either)are wrong in our assumptions. Obviously those old games stills ell well and are a very good source of income for those developers going by what Pip has said and Iain. If thats the case I have no argument.

DBeves
Posts: 401
Joined: Mon Jul 29, 2002 5:11 am

RE: The Good Health of the Wargaming Niche

Post by DBeves »

ORIGINAL: Alchenar

I like how this '13 years of data and experience' line keeps getting trotted out despite the fact that it apparently doesn't include basic analytics like 'how long on average do our users spend playing a game?'

And who else in the industry has that data ?

Mmmm... steam ... why ? Because they track your activity and it gets reported back when you are online via a proprietary system linked to their DRM - you like that ? Next you will be suggesting an always online DRM system so matrix can know what day of the week you play it on as well.
DBeves
Posts: 401
Joined: Mon Jul 29, 2002 5:11 am

RE: The Good Health of the Wargaming Niche

Post by DBeves »

ORIGINAL: vonRocko

ORIGINAL: wodin

Jim no one wants Steam like sales\reductions where they charge silly amounts for newish games..we are talking about games well past their shelf life.

Why do those who stick by Slitherine resort to name calling when myself and Tim Stone are trying to make a change that we think will benefit everyone...does that make us whiners or because we want to save some money and want things cheap? So far removed from where I'm coming from anyway...
I agree Wodin, you're one of the few who can see the trees despite the forest. I can't believe the comprehension skills of some posters. Heck some of them think this is all about PON!
see the trees despite the forest. I can't believe the comprehension skills of some posters. Heck some of them think this is all about PON!

Our comprehension skills ? LOL thats rich - you are the ones who are told again and again the facts - based on hard data from an actual games company - doing actual business in in actual market place, and the one we are discussing to boot - and yet you are the ones who cant comprehend that your assumptions based purely on what you think would happen - not about PON on its own - are entirely incorrect.
Tomn
Posts: 148
Joined: Mon Apr 22, 2013 11:10 am

RE: The Good Health of the Wargaming Niche

Post by Tomn »

ORIGINAL: Jim D Burns
Complaining about prices is not constructive criticism when the company already laid out their reasons (something 99% of other companies would never do) for sticking with their business model, I can't think of anything else to call it except whining if you are not then ready to let it go.

They obviously still generate an acceptable revenue stream from their older titles which is what allows them to continue to support those titles many many years after release. I guarantee if they resorted to discounting their games 2 or 3 years after a title is released, the ability to support those same titles for more than a couple years max would vanish overnight, Paradox being the best example of this fact. Paradox has stated time and again there is no budget for more than 2 or 3 patches for a given game, if it isn't fixed by then it won't be getting fixed. Because of their business model they have to move on to a new product line.

The people at Matrix and their developers have families and mortgages just like the rest of us. I seriously doubt 100,000 sales of game X at $5.00 per game would keep a development house and the production team at Matrix in business for more than a year or two max. Not to mention the fact I seriously doubt they could sell 100,000 units of any of their titles even if they were severely discounted, Distant Worlds being a possible exception due to its crossover appeal.

Once a game has gone through a severe discount period, there are very few people left who would be willing to buy the game for a higher price again years later as we see now occurring with PON. Those who paid 1.50 for PON basically put the money in the pockets of the discounters and gave nothing to the men who did the actual work to bring that game into being. While I understand the urge to pay such a cheap price for a game, you did take food out of the mouths of those men and their families by not supporting them and buying it from their site at their listed price.

And because you enjoyed getting something for nothing from those men you now want to convince Matrix and all the other developers here that you should also be allowed to take food from them as well. If wargaming was mainstream like most other genre's out there I'd be the first one screaming for price breaks because they'd sell enough units to make discounting a viable business model. But years of experience in this hobby first with board games and now with PC games has taught me that anyone who tries to make wargaming work using a mainstream business model will fail in very short order.

Talonsoft is a perfect example. They were arguably the most successful early PC wargame publisher out there. Then they had one non-traditional wargame title (FPS title can't recall the name) sell hundreds of thousands if not millions of units and they tried to bring their business up to support the staff and warehousing such a success needed. They were out of business within a year or two having to sell out to Take 2 because there simply wasn't enough interest in the rest of their games (almost all were traditional wargames) to allow them to stay in the black.

They did try and move into games they were not experienced at developing, but they simply couldn't succeed in time to stay afloat. If memory serves they tried to develop some vampire FPS game and a RTS title, but their customer base revolted on them when they were told by Talonsoft that PC wargames were going to be different from now on. Translation: They couldn't keep the success going with traditional wargames.

Had Talonsoft been successful at crossing over to mainstream titles and were it still in business today, I doubt there'd be any more wargames on their roster of games offered. Wargames will never sell enough units to support a discount business model unless you shift your games quality to something that appeals more to the masses.

Paradox used to be a quality production house for wargaming, now they simply pump out garbage and come up with ways to sell the same garbage to their customers over and over. If they stuck with their titles long enough to get them working as intended I wouldn't be so negative on them, but the fact games like HOI3 will never be finished because they can't generate enough cash to support the work needed to fix it tells me their business model is not worth supporting no matter how cheap they decide to sell their garbage.

Even if Matrix has a bad release, I know from experience they will stick with it till they get it right. To me that's worth the higher price point any day of the week.

Jim

I don’t think I can agree with you on this, for the simple reason that I do not believe it is wise to accept anyone’s word, my own included mark you, as the Voice of God bearing ineffable truth. All people are fallible, and in the absence of a Truthrock that glows gently in the presence of objective truth, the only way to resolve any disagreement in opinions is through debate and discussion. So long as we are polite about the matter, and explain our positions as clearly and as well as we can, what harm can there be in expressing our opinion that Matrix Games may have overlooked potential profit?

For that is the key point at stake here. Those of us arguing for lower prices are hardly trying to “steal money out of the mouth of developer,” and I am not at all certain that there is any benefit in accusing us of such. Rather, we genuinely believe that lower prices, particularly with older games, would bring in MORE money for Matrix Games and their developers – that such lower prices would be a net benefit not only for the customer, but for Matrix Games as well (for details of why we think this is so, please refer to my earlier posts. I apologize for their length!) Certainly they are experienced publishers – certainly they have garnered a commendable success in their projects – certainly they do have some idea what they are doing. But does that truly preclude the possibility that some of the fans might have good ideas and good arguments behind those ideas which Matrix Games, which is only human, might have overlooked themselves? And even if we should be complete Neanderthals incapable of stringing two concepts together, cannot Matrix Games simply ignore us and leave it at that? I see then no harm whatsoever in polite discussion about the matter.

So much, then, for our right to speak our piece. As to specific arguments, I think I must object to two particular prongs of your offensive. Firstly, you have a particular amount of vitriol for Paradox Interactive, and seem to believe that they don’t ever patch and are doing badly. This is more than a little surprising to me given that they’re pretty much the biggest name in grand strategy and that they possess quite a good reputation for being willing to stick with their games for rather a long time – longer, certainly, than any more mainstream publisher you might care to name. I’m completely baffled as to where this claim of “two-three patches then BUST” comes from. In fact, with their newest modular DLC system (visible in CK2 onwards), one can’t even argue that you need to buy their expansions to fix their games – their DLC/expansions unlock new features within the game, but patches will always be free and constantly coming even for those who only ever bought the base game. This doesn’t REALLY seem to fit the image you paint of an addict on the verge of starvation constantly stumbling towards their next fix. And while you may not care for the direction their games are going in, it seems hard to argue that they’re doing quite well for themselves. May I ask you to provide citations to back up these claims of bad patching and poor financial stability?

Moving on, then, you bring up Talonsoft as an example of a company that went bust trying to become mainstream. Now, I wasn’t particularly aware of who Talonsoft was, and had to look it up – I was pleasantly surprised to find that I did in fact recognize one of their games, and easily the most famous one on the list – Jagged Alliance 2, a tactical turn-based squad game that’s still considered one of the great classics by gamers across the world. None of the other games on their list comes anywhere close in terms of recognizability – I presume, then, that this was the “FPS” you were talking about? Not exactly, I would think, the sort of thing that denotes them diverging wildly from their roots, but perhaps you have a differing perspective on the matter.

But regardless, we move on as you tell their story about their attempt to branch out which collapsed swiftly, and cite this as evidence that wargames cannot be sustained using standard pricing tactics. While this is certainly a useful cautionary tale, I think I must point something out – Jagged Alliance 2 was released in 1999, Talonsoft was acquired by Take-Two in 2000, and it went out of business in 2005. In terms of the gaming industry, this was a VERY long time ago, in the days when “digital download” was a thing that a few homemade shareware developers did and retail stores were the only places you could get your games from. The advent of major one-stop-shopping distributors such as Steam and Gamersgate changes the old retail dynamics dramatically. For more details, I refer you again to my previous posts in this thread, but in short, Steam provides enormous visibility. The main problem that niche games of all kinds have always suffered from is finding their customers and selling to them, but Steam sidesteps this issues that making practically anyone with a PC game aware of anything that comes to their front page, making it much, much more likely that anyone with a potential interest in the niche will find what they didn’t know they’d loved all along. It is for this reason that Steam et al. are considered responsible for the recent boom in indie niche game development, and why so many niche developers are so willing to sign on with Steam.

In the old dynamics of 1999, when customers could only see what they can find by browsing on the shelves and where wargames were customarily shoved into less prominent spots, it was unlikely that wargames could succeed by trying to compete in price. But now in the age of mass visibility, unlimited storefronts, and digital pretty-much-everything, is it not possible that these old dynamics no longer apply, and that wargames can make an excellent profit even at a lower price because they’re capable of finding many new eager wargaming fans from major distribution outlets? That is the great question. Are the lessons of Talonsoft, then, so relevant to the year of 2013?
Tomn
Posts: 148
Joined: Mon Apr 22, 2013 11:10 am

RE: The Good Health of the Wargaming Niche

Post by Tomn »

ORIGINAL: Iain McNeil

There is no bad feeling towards anyone who bought PoN at $1.50. I really don;t want people to feel guilty or that they cheated anyone out of anything. I think it was a bad business decision to sell at that price but it is the person setting the price who any angst should be directed at, not the customer buying it.

This is fundamentally our point and matches exactly with the data we have. Price is not the issue here as some would have you believe. There is very little price elasticity in the demand curve beyond a certain point. We pick prices on a game by game basis that put it in the best position on that demand curve.

When I say we have 13 years of data - I don't mean we look at data from 13 years ago. I assumed that would be clear but just to clarify and avoid any confusion - I mean we look at the trends over 13 years and use them to predict the current and future trends.

The perception that old games are past their shelf life is misguided. We have games approaching ten years old that still generate revenues in the five to ten thousand dollars a month range. Sure, that's not all of them, and there are some older games that might benefit from a price drop but the assumption that these older strategy games do not sell is fundamentally flawed. What you see in other genres does not apply here for various reasons I wont go in to. I don't really know what more I can say. I'd like to convince you we are right, but it looks like I can't as you don't seem to believe anything we say. :)

The sad thing is it is we who are accused of not believing our fans! Oh the irony.... :)

Hi, Iain. I hope I'm not being a bother, but I do have some questions which I think are worth asking. For the benefit of others reading, I hope you realize that I intend no offense with these questions, but instead genuinely want to have a discussion on the subject.

Now, then, I certainly understand that you're attempting to observe trends in data, but I do have to ask - where is the data coming from? Because if they're coming primarily from your own customers, your own sales and your own business, and if you've been operating using a somewhat unusual business model which hasn't altered that greatly over the years, it seems that this could obscure the potential for greater success using other strategies. To use an analogy, a farmer who consistently uses 2-field rotation could say "My data and my experiences of farming trends over the past fourteen years shows that 2-field rotation is the best way of gaining maximum food out of the ground I possess," and while 2-field rotation certainly isn't a bad system and is capable of feeding the farmer, 4-field rotation would be even more productive - but his data would not show otherwise in the absence of having tried it out. Much the same might apply here, and indeed, has applied here - were you not greatly surprised by the success of tablets? Did your pre-existing data predict that success before you attempted it? If it did not, doesn't that suggest that your data is incomplete and may not have been adapted properly to account for new market realities? If the data is in fact incomplete, wouldn't that suggest that it might well be possible to lower prices and still make a greater profit?

I do not insist, of course, that you are absolutely and certainly wrong, and that I know this because I'm the customer, dangit, and I'm always right. I do ask, however, that you make greater consideration for the possibility of error in this regard than you are currently appearing to, and to approach your latest experiments in these matters with a touch less hesitation than currently affects you, as I think my reasoning for doing so is fairly sound. If you think it unsound, however, do let me know if you have the time to do so, and I shall strive to correct it.

Have a nice day!
User avatar
IainMcNeil
Posts: 2784
Joined: Tue Oct 26, 2004 10:01 am
Location: London
Contact:

RE: The Good Health of the Wargaming Niche

Post by IainMcNeil »

We have sales data from Steam, Gamers Gate, Impulse, Matrix, Slitherine, Ageod, iTunes, Google Play, PSN store, Amazon and a host of other digital outlets that combined together are insignificant. We also directly publish to retail around the world. Then we have our partners and their experiences. Then we have our staff's experiences at other companies before joining.


Iain McNeil
Director
Matrix Games
thewood1
Posts: 10056
Joined: Sun Nov 27, 2005 6:24 pm
Location: Boston

RE: The Good Health of the Wargaming Niche

Post by thewood1 »

Something I might have missed...

Has matrix ever talked about product mix in their announcements on revenue? Revenue growth is almost meaningless without some discussion of how much of that is garnered through existing products and new products. This is where the pricing discussion is important here. Beyond the newer forms of distribution, this is basic product management 101. If you have new products coming out steadily, you go to your catalog and lower the price of older products that aren't selling. If you have a product that is selling less than 100 units a year, the only recourse you have as a product manager is to lower the price or re-invest in it. You could also sunset it. If you don't do this, that product is just chewing up costs. Because you still have to support it, maintain space for it, manage the contract, market it, etc. That takes time and money.

This is not about trying to get a cheaper game. This is about advice to Matrix on easily increasing revenue on their older product, at almost no risk. If after a lowering of the price, little activity happens on the product, sunset it. This is not some wild out of the blue idea. It is standard product management in SW companies good and bad. If all those old products are flying off the shelf at list price, the point moot. If the contracts with developers are structured around minimum discounting or a veto by the developer, than Matrix is screwed.
dutchman55555
Posts: 139
Joined: Sun Apr 21, 2013 12:29 am

RE: The Good Health of the Wargaming Niche

Post by dutchman55555 »

ORIGINAL: Tomn

I do not insist, of course, that you are absolutely and certainly wrong, and that I know this because I'm the customer, dangit, and I'm always right. I do ask, however, that you make greater consideration for the possibility of error in this regard than you are currently appearing to, and to approach your latest experiments in these matters with a touch less hesitation than currently affects you, as I think my reasoning for doing so is fairly sound. If you think it unsound, however, do let me know if you have the time to do so, and I shall strive to correct it.

Have a nice day!

I think why I have so much concern is that Matrix can be recognized as a lynch pin for PC wargaming today. And what they choose to do (or not do) affects the hobby just as much as it affect the company. Higher prices encourage fewer sales, to fewer people. Rationally this means that at best we can hope for a stagnation in the number of players; at worst this means a gradual decline through attrition. I think what's most infuriating here are the apologists who will grasp at any straw to defend Matrix with their dying breath. I'm sure next we'll hear that a shrinking wargamer population is a good thing, as it frees up online resources or encourages more iPad development or some such thing. Anything to avoid that cold, hard look at reality.
Tomn
Posts: 148
Joined: Mon Apr 22, 2013 11:10 am

RE: The Good Health of the Wargaming Niche

Post by Tomn »

ORIGINAL: Iain McNeil

We have sales data from Steam, Gamers Gate, Impulse, Matrix, Slitherine, Ageod, iTunes, Google Play, PSN store, Amazon and a host of other digital outlets that combined together are insignificant. We also directly publish to retail around the world. Then we have our partners and their experiences. Then we have our staff's experiences at other companies before joining.

Thank you very much for your response. I realize it's hardly standard practice for staff members to discuss details of their business with their customers (or potential customers), and I do appreciate you taking the time to do so. If you don't mind, however, I do have a few follow-up questions.

Now, I apologize for a certain level of ignorance here, but when you say you have sales data for all these outlets, do you mean general sales data to do with the various games (from other companies) trying to be sold, or do you mean sales data for your own games on these different platforms? Because what I was suggesting is that if you embrace a certain sales doctrine and look only at the data produced by using that sales doctrine, you may not be seeing the possibility of greater success and profits using alternative doctrines. Of course, I realize other companies are hardly going to give away such information to anyone who asks, but have you looked closely into seeing what has worked for others and figuring out what is worth adapting for your own models and experimenting with?

Leaving that aside, however, I'd like to reiterate this question, since it may have been lost in the issue of where the data comes from - Did your existing data predict your success in tablets? If they did not, doesn't that suggest the possibility of error in your data and therefore in your assumptions regarding price points? Not to say that you should immediately go out and have a "EVERYTHING IS ONE DOLLAR FOR THE NEXT TWO WEEKS" sale, but would it be worth revisiting the basis behind those assumptions, perhaps focusing more efforts on other experiments to see whether those assumptions still hold true?

Thank you again the taking the time to try and engage with the public.
User avatar
wworld7
Posts: 1726
Joined: Tue Feb 25, 2003 2:57 am
Location: The Nutmeg State

RE: The Good Health of the Wargaming Niche

Post by wworld7 »

ORIGINAL: grogmaster

Why do I get the idea that Matrix Games distrusts customers input and shoots down any advice consumers give, with a strong aroma of arrogance?

Oh, this is too easy...
Flipper
Post Reply

Return to “General Discussion”