I wonder how bad all the @Riot's want to tell us off.

First Riot Post
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Haha same YOLO

Senior Member

02-18-2014

Quote:
Originally Posted by WizardCrab View Post
It didn't. All I'm saying is that we could have gotten every advantage of your points A) B) and C) by releasing at full price and then discounting later. Plus the added bonus of release sales at full price.
Fair, you "lose money" but you sell far more by selling it at a discounted price. Given the number I quoted before, we can ballpark it as at least a 200% increase in sales over that time period, which means that you make up more money than you lose. IF it wasn't PROFITABLE (which is the key word here), you wouldn't do it.


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Hippopotamus G

Member

02-18-2014

After carefully all of these posts. I've come to a grand conclusion!

Wizardcrab = Ghostcrawler.

eCommerce life > Game Design.

ask Morello, he'll agree.


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Coldmanj

Senior Member

02-18-2014

I tip my hat to you Wizardcrab for fielding so many responses. Just reading some of these posts gets me irritated at how narrow minded they are at times.

I think I finally understand how some Rioters feel with regard to the forums.


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WizardCrab

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02-18-2014
24 of 63 Riot Posts

Quote:
Originally Posted by Letkhar View Post
Yeah, skimming only works in a competitive market where market price is lowered shortly after release as a result of competition. The market for Riot Skins is a monopoly, (Riot is the only provider and you can't sell skins that you've bought) and legendary skins never go on sale again after their initial release. Prices for those skins will never go down unless you autonomously choose to do so later. So really you're just price discriminating based on the structure of the market you're operating within.

Nice try, though. Unfortunately some people on this forum have gone to college, too.
Skimming works ideally when you have a highly differentiated good. You can't skim with a "me too" product i.e. one with a lot of competition. In a certain sense we do have a monopoly, and price discriminating is a more accurate term for the optimal strategy we could employ, which we don't do. It just further shows money that we're leaving on the table here.


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Scorchas

Senior Member

02-18-2014

Quote:
Originally Posted by DeathByGrenade View Post
I know they won't be able to acknowledge this thread as professionals, however if I were them I would wonder every day if it's worth it by the types of posts that happen in GD.

I'm ashamed of the community some days, others, really proud with all the fan art and dedication to the game and characters they've created.

Just saying, well done @Riot staff idk how you do it.
Yes I too often wonder why more incompetent people don't project their failure onto the rest of us and blame their critics for their own self-created problems.

guess what? Every online community has trolls and losers, if you cannot handle it then stop taking the paycheck and give the job to someone with a thick enough skin to filter out the losers and to be able to actually handle legitimate criticism in whatever form it comes without turning into a melodramatic diva about how hard your life must be having to look at things all day. Boo hoo.


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Letkhar

Senior Member

02-18-2014

Quote:
Originally Posted by Gareus View Post
A simplified version of Crab's post, he is basically saying that they are willingly losing profit due to discounting new product during release. Its like if Sony released a console and discounted it for the first week of release. Yes, the discount can drum up some excitement and interest, yet it also comes with the risk of losing profit/not maximizing profit.
The difference is Sony actually has competitors, so they want to maximize efficiency off of the excitement of a new product before market competition drives the price down. You can't buy Riot skins from anyone but Riot, so really penetration pricing was the way to go.

This isn't that hard. It's like Econ 156.


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Blaine Tog

Senior Member

02-18-2014

Quote:
Originally Posted by WizardCrab View Post
Case in point: for what unearthly monetary reason would we ever sell Ultimate skins at a discount on release.
To make up for the lower price by selling higher volume, and use the threat of an imminent price increase to create a false scarcity. In other worse, the number of people who would be willing to pay 1600 RP for a skin is very likely more than double the number of people willing to pay 3200 for one, and people who would normally not be interested in paying even 1600 might decide to spring for it if they feel like they have a chance at a deal by buying now. If you know the price is going up significantly and have been told it won't ever go down again, you might be more inclined to put up your money now. While it's possible you might've gotten those sales like a year in the future if you'd discounted the skin later, that's a years less time you would've had those people's money and it's entirely possible they might've decided they didn't want the skin after all by then. By holding a skin's one and only sale out of the gate, you put pressure on people to give you their money now even if they don't necessarily want the skin just because changing their mind later would be prohibitively expensive.

I don't agree with the claim that Riot's greedy, but there are very sound financial tactics behind pricing Ultimate skins the way you guys have priced them so far. Are you telling us you guys actually lost money on PFE, when everything's said and done? I was under the impression it was one of your greatest individual successes.


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MetalGearTeemu

Senior Member

02-18-2014

Quote:
Originally Posted by Coldmanj View Post
I tip my hat to you Wizardcrab for fielding so many responses. Just reading some of these posts gets me irritated at how narrow minded they are at times.

I think I finally understand how some Rioters feel with regard to the forums.
Well done. You are the ideal customer.

Not think about what that makes you to them in the grand scheme of things. Sales is always to be questioned. Because 99% of sales is bull****, with just enough truth to keep your ass off the grill.


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Morello

Lead Designer

02-18-2014
25 of 63 Riot Posts

Quote:
Originally Posted by Spitsonkittens View Post
I'm still confused about the whole "Do we want more stable servers, or a new map?" thing. I thought Riot was constantly stressing these were different departments and not affecting the others. Did the map artists go to the server room or what?
Yes, but the idea of 2 players per game instead of ten players per game means the map takes up more server room, because each game has 8 less players (due to 1v1 vs 5v5). This is a natural side effect and cost of making the mode live (and not the only consideration, but an example).


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WizardCrab

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02-18-2014
26 of 63 Riot Posts

Quote:
Originally Posted by Coldmanj View Post
This brings up a good point though Wizardcrab that I think many newer players dont consider fair. New players that see skins like SGU and PFE would love to get them but see the price and decide not to, then they get an ally or opponent with the skin and they comment them on it only to hear "yeah I got it when it came out on sale" end up feeling cheated. They never even had the chance to purchase the skin when it was on sale. That is where some frustration might come up for some people.
I could see that. I'll have to think on this, although we don't have any plans to (or even any conversations about) putting ultimate skins on sale after the release sale.