View Single Post
Old 12-07-2007, 04:10 AM   #115
HarryT
eBook Enthusiast
HarryT ought to be getting tired of karma fortunes by now.HarryT ought to be getting tired of karma fortunes by now.HarryT ought to be getting tired of karma fortunes by now.HarryT ought to be getting tired of karma fortunes by now.HarryT ought to be getting tired of karma fortunes by now.HarryT ought to be getting tired of karma fortunes by now.HarryT ought to be getting tired of karma fortunes by now.HarryT ought to be getting tired of karma fortunes by now.HarryT ought to be getting tired of karma fortunes by now.HarryT ought to be getting tired of karma fortunes by now.HarryT ought to be getting tired of karma fortunes by now.
 
HarryT's Avatar
 
Posts: 85,557
Karma: 93980341
Join Date: Nov 2006
Location: UK
Device: Kindle Oasis 2, iPad Pro 10.5", iPhone 6
Quote:
Originally Posted by mrkai View Post
Video Games: Video Games seem to be the yardstick of price/cost/value that they use to measure. A "Triple A" software title (ok, this is confusing; they mean A++, not Minor League. I know. I KNOW.) on the Most Powerful Hardware Evar!!! costs $40-$60Million USD to make and sells for $40-$60.

By their reasoning, nothing that costs less than this to make should cost more than the price of a game. I've seen, read and heard this MANY MANY times.
They have not considered simple economies of scale.

If you spend $10m developing a video game, and you sell 1 million copies of it, you'll break even selling it for $10 a copy (ignoring distribution costs, etc).

If you spend $10m developing a CAD package, and you know that you're only going to sell 1000 copies of it, you need to sell it for $10k a copy to break even. You couldn't sell it for $10, because there aren't a million people in the world who'd want it. It's doubtful that selling it for $1k rather than $10k would get you 10x more sales.

The point is that software aimed at professionals - CAD packages, video editing suites, PhotoShop-type applications, etc - are generally bought for their functionality rather than their price. If I'm a graphic designer charging clients $1000 a day, it's irrelevent to me whether PhotoShop costs $100 or $1000 - it's a tool I need to do my job and I'll buy it whatever it costs.
HarryT is offline   Reply With Quote