Author: Steve Lopez
Date: 05:51:11 03/29/99
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On March 29, 1999 at 00:41:20, Lin Harper wrote: >While we're on the subject, why don't the "professional"(did I spell that >right?) programs appear on the shelves of computer game warehouses, alongside >CM6K and the 'crappy' ones? Are they too snooty? Or is it that their prices will >appear a little out of line in comparison to the other games. Mindscape has the >better business approach to marketing a chess program, and will make a killing >now with these SSDF results! Speaking from personal experience, it's because you have to practically *give away* your software to get it into mass-market. Why do you think Babbages, Software Etc., and the rest debut a program at $50 and eventually knock the price down to $15 or less and *still* make money? Is it because they love you and want you to own the sofware for a mere pittance? No, it's because they pay about $7.50-$10.00 per unit for a program that retails for $50.00, so after a few months they can knock the price down to $15.00 and still turn a profit. Software manufacturers make more money per unit on direct sales (therefore increasing their ability to stay in business and produce new product) than they can by selling through third-party vendors, and this is particularly crucial for producers of specialty software (such as chess programs). Chessmaster isn't the only program sold by Mindscape, just as Power Chess isn't the only Sierra product (besides, Sierra went outside the company for Power Chess' engine anyway). Believe me, *nobody* is becoming wealthy in the chess software business. In fact, I took a pay *cut* to return to ChessBase compared to what I'd been making in non-software-related businesses (there were compensatory factors -- I work at home, I have fewer hours per week, less stress, more time with my kids, etc). But I won't be purchasing a yacht anytime in the near future. By the way, I'm not disagreeing that lowering prices can increase sales. We've been selling Fritz/Junior/Nimzo like there's no tomorrow since the price went down to $49.50. -- Steve Lopez
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