Archive for the ‘Apple’ Category

Casual Gaming - The end of the $60 PC game?

You hear it from XBox 360 and Sony PlayStation fans all the time. “If you’re spending $60 for a game that’s not on a high-end XBox 360, PS3, PSP, or insert-high-end-console-name-here, you’re being ripped off.” This group feels that the idea of gaming on a PC is crazy. They’ll argue that no computer comes with game pads or joysticks and you’ll have to buy those too. They’ll say that PC’s cost twice as much as a console — or even more! The idea of using a mouse and keyboard for an FPS (First Person Shooter) is like asking them to play on the console with one hand tied behind their back. But what’s the real argument against PC gaming here? Will the casual gaming market be the end of the $60 PC game? My answer is no. I’d pay $60 for a PC game. I’d pay because of the specs, the convenience, and the price would only depend on the games lasting value and quality.

SPECS

PC’s can easily be higher-end systems than consoles. The drawback is that you just pay for it up front or as you go by upgrading your video card and adding in more hard drive space and RAM. The good news is that a good PC has historically still had more options in their games than the console counterparts. For example, you can run UT3 on a PS3 or XBOX 360, but it’ll run at the native resolution of 720p. A PC version of the game gives you the controls to run at a much higher resolution if you have the hardware to support it. You’ll also get access to user-created levels or complete mods on the PC without dealing with the censoring of that content on a console.

CONVENIENCE

However, I can respect the “console gaming > pc gaming” sentiment and I sit happily on the fence between both worlds. It’s become harder and harder to justify the hundreds of dollars you can easily pour into building a good gaming PC vs. the prices of consoles for somewhat similar performance and features. The game selection and ease of use of the consoles has always been their appeal and it’s just gotten better. The PC world (and especially the Apple world) have been unable to match the consoles in the ease of use for gaming department.

For quite a while now, there’s been a new market evolving in both the console and PC worlds. It’s a market where you can just download smaller titles at much lower prices. They typically have a little less flare, but pack in just as much fun. In the PC world, these are casual games that don’t require any high-end systems. Most people at least have a low end PC. A PC of some sort is almost required for daily living in today’s day and age, whether it’s a necessary evil to the user or something they love. These casual games will usually work the same on the low end $500 laptops as they would on the $5000 gaming PC. There’s even a market for completely free titles where you just pay for additional upgrades in game rather than paying for the gaming experience up front. These casual games that cost less than 10 bucks are perfect for people that don’t want to build a high-end gaming rig or just want some new experiences. Facebook and other web-based games have become successful with this market as well. Since everyone has a computer, the convenience of these titles and the ease of paying for them and downloading instantly means there’s no reason not to try it out.

PRICE

Overall though, I don’t understand how you can complain about a games price if you’re willing to buy a 2 hour movie on DVD or Blu-ray at $10-$30 that you may only watch once or twice. It seems like getting 10+ hours of game play should be worth paying a premium for depending on the production quality and enjoyability of those hours of game play. I’d pay $60 for a PC game. I’d pay $60 for a console game. I am ecstatic that there are companies also making games for under ten bucks, but games cost a lot to make and you’re probably not going to get the same quality or lasting power with a $10 game vs. a $60 game. This is why the free and cheap games are really just a new segment and not a replacement for games with those higher prices and higher production costs. The price I’d be willing to pay only depends on the experience that’s being offered and the quality of that experience.

I paid $80 for Street Fighter 2 the day it was released on the Super NES. It was the most expensive title ever and there was a lot of debate surrounding the price point. The price quickly dropped, but the few of us that rushed out to get the game despite the price got to enjoy playing many more hours and saved some quarters from playing in the arcades. The debate over the pricing or games and gaming on PC’s vs. consoles will not end any time soon, but hopefully the markets won’t just take the development of these for granted either.

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Apple undercuts Palm
Apple iPhone 3GS

Apple iPhone 3GS

The Palm Pre was just released on Saturday at $199. Reports seem to be consistently saying that Palm was successful in selling the quantities that they wanted over the weekend. The Palm Pre looks like a great device with lots of potential for techy consumers that want some thing new and something non-Apple, Blackberry, etc.

The biggest question for Palm is whether they’ll be able to continue selling their device. Today at the big Apple Keynote for the WWDC, Apple made this question even bigger. Apple has officially announced a new device, the Apple iPhone 3GS with a superior camera and a few great new features at $199 for 16GB and $299 for 32GB. What’s more potentially disastrous for Palm is that they also announced that the old iPhone 3G 8GB will continue to be sold and is now priced at $99. That price is the same as several phones that are nowhere near as good as the iPhone and $100 less than the Palm Pre.

These two announcements quickly took over the “Trending Topics” on Twitter.com and flooded all the tech blogs quickly. The biggest question for Palm will be if they can regain the hype online around their phone and whether they’ll do anything to counteract this challenge or if they feel their phone speaks for itself at it’s current price and with it’s current marketing. I don’t know any non-tech friends that know a thing about the Palm Pre and I’m concerned that they haven’t made it desired enough. I think the competition is great and I don’t think Apple’s news will kill Palm (or others for that matter), but it does present even more challenges for other phone manufacturers as Apple continues to add to their feature sets.

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The Power of Convenience
Nintendo Power Strategy Guide - Super Mario Bros. 3

Nintendo Power Strategy Guide - Super Mario Bros. 3

As a result of being born in 1979, I’ve had the pleasure of seeing many of the ups and downs of video games over the last 30 years. I was in Jr. High School during the early 90s and was always thinking about how I’d get rich. Spending less of my lunch money and saving just wasn’t going to cut it. I remember having a subscription to Nintendo Power and receiving the special Nintendo Power Strategy Guides as part of the subscription. These guides sold in retail stores for $10-$15 if I remember correctly. As a result, I remember reading them and then showing them off at school and selling them. It was like free money to me and I could usually get around the same price as retail for them.

I knew how to market this stuff to the kids at school and would even have kids in bidding wars on occasion. My money was in their pockets and I just had to figure out how to get it. Was I popular? Not at all. I often think that if Facebook, Twitter and MySpace had existed when I was in grades K-12, things may have been different, but I had enough close friends that being the most popular kid in school never really concerned me. When I wasn’t rollerblading or playing football or basketball with my friends, my free time growing up was spent in front of a computer monitor. I started a BBS in Jr. High and I learned quickly that I was great at talking my way around the net in the days of IRC.

The tools have evolved now and the computer is no longer just something geeks use. Now companies are just using these new tools as ways to reach their audience and make more sales. The process is still the same. Resale and consignment is still a huge business and companies like Amazon and eBay have proven that they can deliver. It seems that making buying easier for the consumer is a key business strategy as well. Amazon and Apple have devices on the market that connect you right to their stores so you can purchase items on the go. The eBay Apple iPhone app allows you to be in a bidding war while you’re relaxing at the beach.

Making it convenient for people to buy your product is the key thing that 7-11 and other convenience stores learned long ago. It’s what online companies have learned and it’s what I learned in Jr. High. A good balance of being in the right place at the right time, having a product with good margins and as little inventory as possible is what makes the perfect resale company. Being a middle man of sales like eBay is also a good solution. Everyone has something to sell and eBay helps facilitate that connection to a wide audience. How will your company combine the power of resale and convenience?

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