Pricing complaints can surface in different forms, yet ultimately underline an underlying problem with the introduction of, or hike in pricing of in-game assets to the discomfort of players. Earlier this week, in one of such complaints, a popular Twitch streamer raised his voice against giant gaming company, Ubisoft, over the pricing model of their last game, Star Wars: Outlaws, and its continued pattern in their next game, Assassin Creed Shadows. According to the streamer, the adoption of such pricing methods with “pay-gated” content should not be normalised in the gaming industry, and expects Ubisoft to “do better”.
This introduces the need for adopting customer-centric strategies toward pricing, to ensure that they know what to expect, what they are paying for, and do get fair access to gaming items and assets. Therefore, in this article, we shall discuss the process of respecting customer opinion in pricing policies to maintain a transparent understanding for all players and the community.
Pricing transparency plays a crucial role, especially in the gaming industry, offering significant benefits for both players and businesses. One of the primary advantages is the enhancement of players' trust and confidence. When gaming companies provide clear and understandable pricing, they foster a sense of trust and reliability among players, minimising the chances of them feeling exploited. This transparency leads to stronger, more enduring player relationships and loyalty, which are vital for the long-term success of gaming projects.
Transparent pricing also contributes significantly to informed decision-making and market efficiency. By enabling players to understand and compare prices accurately, they can understand the true costs of products or services, ensuring they receive the best value for their money. The ability to make well-informed decisions promotes more competitive markets, compelling companies to continually improve their games to stay competitive. Additionally, in markets where pricing is clear and accessible, both consumers and businesses can quickly identify fair prices, eliminating extreme price discrepancies, and promoting fair competition. This leads to a more efficient allocation of resources, beneficial when building a player economy.
Regulatory compliance is another critical aspect of pricing transparency. Many industries are subject to regulations designed to protect consumers from unfair practices. Adhering to these regulations allows businesses to avoid legal issues and penalties, fostering a more secure and fair marketplace. Compliance not only ensures the protection of consumers but also enhances the integrity and reputation of the business. Furthermore, transparent pricing reduces uncertainties for consumers, as hidden fees and complex pricing structures can create frustration and uncertainty. Therefore, to develop clear and straightforward pricing, it is crucial to involve the views and opinions of the players to achieve higher customer satisfaction and commitment.
Integrating the customer perspective into game pricing decisions begins with thorough market research to understand customer needs, perceptions, and behaviours. Surveys, focus groups, and gamer interviews reveal what players value most in a game. According to a 2022 PwC survey, 63% of consumers prioritise product quality over price. Understanding these preferences helps businesses tailor pricing strategies to align with what customers are willing to pay for the perceived value they receive. For gamers, this ensures that pricing reflects the true worth of the game in the eyes of the player, without them feeling exploited.
Analysing the competitive gaming landscape is another crucial step. This involves benchmarking asset prices against those of similar games in the market. Although ingame pricing isn’t a big factor to most gamers, indiscriminate pricing can impact player dedication by up to 70%. Players need to have a sense of fair pricing for assets and access that is similar to those in the same gaming niche. And when gaming companies understand how these prices can present unique selling propositions (USPs), they can leverage it to attract players while highlighting the games unique benefits.
Customer segmentation is essential for developing targeted pricing strategies. Not all customers have the same needs or willingness to pay. By segmenting customers based on these factors, businesses can tailor their pricing strategies to different groups. For example, premium segments might pay more for additional features, while price-sensitive segments might respond better to discounts. According to McKinsey, businesses that effectively use customer segmentation see up to a 10% increase in profitability. Continuous monitoring and adjustment based on customer feedback and market changes ensure that pricing strategies remain effective and competitive. Regularly reviewing sales performance, customer satisfaction, and competitive actions allows businesses to stay responsive to customer needs and market dynamics, driving sustained success.
By doing this, gaming companies can be sure to balance value and cost by educating customers on the pricing models, budget cost, revenue use, etc. Thus, promoting collaborative gaming within its community.
The gaming industry employs various pricing models to cater to different consumer preferences and maximise their revenue generation. These models include base game pricing, premium editions, and special in-game asset purchase, each serving a unique approach to value delivery.
This is the traditional pricing model where customers pay a one-time fee to purchase the game. In this model, prices can range from $20 to $60, depending on the game rating. This payment usually provides full access to the game upon purchase, with every basic asset the game character comes with. For example, The Legend of Zelda: Tears of the Kingdom followed this pricing model, setting a standard price of ~$30 for access.
Premium editions are usually higher-priced versions of the game, but with additional content such as exclusive in-game items, early access perks, seasonal passes, etc. Typically, these premium edition games help to create a more interactive environment for the player that surpasses the base gameplay. This usually comes with special player benefits, both in-game and in the gaming community, making it a sought after upgrade. Popular sci-fi game, Cyberpunk 2077, released a deluxe version with extra digital content and special collectors physical merchandise. These special editions appeal to hardcore players who want to enjoy exclusive content from their favourite games.
Also known as microtransactions, in-game purchases allow players to buy virtual items, characters, etc, for game-enhancing features. This model is prevalent in free-to-play games like Fortnite and League of Legends, where the game is free to download, but revenue is generated through the sale of in-game items. This model can be highly lucrative, with reports showing that in 2022, Fortnite generated $5.1 billion in revenue, largely via in-game purchases.
To justify higher-priced editions or additional content, companies must effectively communicate the value these options offer. First, they must clearly differentiate what customers get with premium editions or in-game purchases that wouldn't exist in the base game. Using detailed descriptions, images, and videos, exclusive content offering behind-the-scenes access can be used to showcase the unique storylines, or limited-edition merchandise that can appeal to fans who value exclusivity.
After this, the gaming company must demonstrate commitment to long term value provision. Emphasising the long-term benefits of premium editions, season passes, special missions, additional characters, etc, puts a timeline of planned updates and expansions into the mindset of customers to help them see the continuous value they receive for owning these items.
Utilising influencers and community reviews where gamers can gather to share their experiences with the premium editions and in-game purchases also helps to educate new community members on the positives of these special assets/access. Positive testimonials from respected voices in the gaming community can influence player perception, and highlight the enhanced experience provided by higher-priced options.
And with free-trial periods and limited-time discounts, customers can directly experience premium content. This helps them appreciate the added value and encourages them to opt for the full package.
To effectively manage player complaints about pricing and cost, transparent communication is essential. Gaming companies are to clearly communicate the reasons behind their pricing models, and the value of additional content. Regular updates then help to keep players informed, reducing misunderstandings that may lead to churn.
Responsive customer support also plays a crucial role in addressing player complaints. Players need to be able to voice their concerns with reps well-trained to handle complaints empathetically and efficiently. This helps companies who proactively seek player feedback to improve decisions about future pricing strategies.
Flexibility in pricing strategies also caters to different categories of player base. Adjusting prices or offering promotions based on feedback demonstrates value to player input, influencing long-term patronage. And with ethical monetization practices, gaming companies can balance the disparity between profit-making and maintaining operational continuity.
By adopting these strategies, gaming companies can maintain a positive relationship with their player base and ensure long-term market success.
In conclusion, customers can identify brands that really care about them. And in the gaming industry, where sentiment thrives, players are even more connected to companies with products that they enjoy. Hence, to connect with the player community thus, gaming projects must ensure to prioritise the gamers in most aspects of development, especially at the pricing stage. When gamers feel “at home” with a game, pricing is almost never an issue. However, when they begin to grumble about prices, they are very likely to seek out an alternative. Therefore, as a gaming organisation looking to maintain dominance, adopting the strategies we’ve discussed above, will have an obvious impact on the satisfaction level the players will have with the game.
