RPG Transfer

*Gets out her professional project manager’s hat and puts it on*

Good morning class,

 Today we are going to learn lessons that even long time professional game developers sometimes fail  to learn. Did you all bring your texts? Very good. Please turn to page 20 of the March issue of PCGamer Magazine.  Mr. No Prisoners, No Mercy Webmaster will you read for us?

webmaster: Yes ma’am.  The article is entitled “Serious Business”. It is part of a regular feature entitled “Dev Man Talking.” This month features Mr. David Brevik, Studio Director for Gazillion Entertainment. (I think he’s a smart man Ms. Whitefeather). Anyway the article is about “How do developers strike a balance between profit and artistry – former Diablo Lead Designer shares his wisdom.

Julie: Very good webmaster. Please  read the last sentence for us all.

Webmaster: Yes Ma’am. It says, “In the end, everyone wants their games to succeed.  Finding the balance between our pure artistic game concept and the realities of business will be the only way to create the complete circle of yin and yang.”

*Julie continues*

Okay class, pay attention. Today we are going to learn about price versus demand.  Everyone knows that factors like supply and demand affect the price a developer can attain for a given product.  In the video game industry, the supply of virtual goods is infinite.  The primary determinants of demand will, therefore be price, and of course the quality of the product.  Look at the chart I have put on the board class.   There you will see where Activision/Blizzard has priced their cute Panderan Monk pet.  Remember a month or so ago when every assho…every person and his brother flew into a rage about the price of a monk costing ten dollars? Now if we have done our studying we know that Blizzard sold enough of the Panderan Monks, that by donating 50% of the sales (which by the way some dirtballs have complained about) that they have raised $1.1 Million dollars for the Make-A-Wish foundation. The reason for this is that by pricing the monk at an affordable level of ten dollars the Activision/Blizzard corporation remained in what is called the inelastic portion of their demand curve. And what does that mean Webmaster?

Webmaster: Inelastic demand is when an increase in price causes a smaller percentage decrease in quanitity demanded.

Julie: Very good Mr. Webmaster. Now take a look at the demand curve for the Allods Online Cash shop.  Note the recent and drastic increase in prices that the developer Gpotato has stated is not an error.  Note the level 10 rune that our friend Keen from Keen and Graev’s gaming blog said cost six thousand eight hundred and ninety dollars.  Can you say six THOUSAND class?

Entire class:  SIX THOUSAND DOLLARS

Julie: Very good class, I knew you could. 

Webmaster:  Times are tough teacher, Gpotato must think we have money coming out of our ass!

Julie: Yes, that’s funny that you should put it quite that way Mr. Webmaster. Now lets look at the price demand curve again.  The Allods Online cash  shop is far into what is called the elastic portion of their demand curve. What does that mean Mr. Webmaster?

Webmaster: That’s where an increase in prices causes a greater percentage decrease in the quantity demanded.

Julie: Very good.  And with such dramatic increases in price where have the profits for Allods online gone Mr. Webmaster?

Webmaster: In the toilet with the rest of the crap.

Julie: And?

Webmaster: And unless they wake up, and pull their collective heads out of their bums, unless they have a parent corporation that is floating in cash, like say a drug cartel, they can kiss their game goodbye.

Julie: Very good Mr. Webmaster. Go to the head of the class.