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Pricing Trends in Video Games Game Supply Academy, February, 2009.

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Presentation on theme: "Pricing Trends in Video Games Game Supply Academy, February, 2009."— Presentation transcript:

1 Pricing Trends in Video Games Game Supply Academy, February, 2009

2 EEDAR About 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)

3 Games Database EEDAR Games Database More than 3 Years In Development Track up to 15,000 Attributes per Title Over 5,000 Titles Analyzed, 5 million+ data points Game Data is Hand Collected by EEDAR Strict Adherence to Objective Analysis Stringent Quality Control Measures Third Party Data Integration (Review Scores, Marketing Spends, Sales Data, etc.)

4 Pricing: Historical Perspective Year 1 to Year 6 Change: 6 th Generation: -19% Year 1 to Year 4 Change: 6 th Generation: -16% PS3/Xbox 360: +6%

5 Games Database Pricing: Current Generation Year 1 to Year 4 Change: 6 th Generation: -16% 7 th Generation: -8% Year 1 to Year 6 Change: 6 th Generation: -19%

6 Games Database Pricing: 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%

7 Games Database Pricing: Core + Casual Consumer Pricing

8 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 6 th and 7 th 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 7 th 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

9 Product Roadmap Thanks for listening! Electronic Entertainment Design and Research Greg Short Executive Chairman gshort@eedar.com 1.877.88.EEDAR x 102 www.eedar.com Questions? Please email me: gshort@eedar.com Presentation available at www.eedar.com/gamesupply09


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