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Pricing Trends in Video Games Game Supply Academy, February, 2009
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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)
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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.)
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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%
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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%
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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%
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Games Database Pricing: Core + Casual Consumer Pricing
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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
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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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