THQ Explores a Lower Price Point Model
THQ’s next game will be smaller with a lower price point as the publisher questions the current $60 price model.
THQ’s CEO Brian Farrell has come out to say THQ is exploring different retail price models in order to remain competitive in a market where customers expect lower prices. THQ is looking below to go below $60 at a time when games like Angry Birds for the iPhone ($1) and Dead Rising 2: Case Zero ($5) dominate the sales charts.
THQ’s next release (MX vs ATV) will have a reduced MSRP with smaller production values to match the price reduction:
“In the past, we’ve seen that we bring the game out at $59.99 and it does reasonably well – around 1m, or 1.5m units. When we lower the price to a mass market price the thing really jumps. So what we’re doing this time is we’re coming out initially with a smaller game at a lower price point – the $29 to $39 range.”
By bringing a product at a smaller price point, THQ will rely on a bit of the ‘microtransaction and DLC model’:
“Gamers will then have the option to download extra content to the tune of around $100 if they so wish.” THQ will need to make sure this DLC is exceptional. We do not want to see $5 extra cars or character skins. I think that’s the future of gaming, whether it’s this model or a take on the free-to-play model. It’s where our industry is going and this is a very, very interesting experiment with one of our key brands.”
It’s great that THQ is trying to break the $60 standard, when a lot of games aren’t worth that money. Even if the DLC is extra paid garbage gamers benefit because it’s their choice.
