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Subject: Re: Will the CM6K result, will this force chess programs down even more

Author: Dann Corbit

Date: 16:32:05 03/30/99

Go up one level in this thread


On March 30, 1999 at 18:51:07, Micheal Cummings wrote:
>Plain fact is that Mindscape already rules the chess market in regard to other
>programs. And if the other companies want to make more money, they are going to
>have to do better than just aiming their product at people who play chess allot,
>and analyse their games.
I think you are clearly in the right here.  They own the market.

>You have to know that most of the people who would buy chessmaster would only
>ever put it on and play against the computer, they use none of the other
>features. I know 5 people who have CM6K as their only chess program. They are
>not serious buffs to chess, but none of the have ever even heard of any of the
>other top programs.
Probably a lot of truth in that also.

>You talk about keeping prices up to keep the quality up, well thats no good if
>youare not selling enough programs to cover your cost in the first place. and if
>people know they can get a strong engine for 1/3 the price, then no one will but
>the more expensive ones (not the mass market)
Let's suppose that it costs you $40 per CD total costs (advertizing, R&D,
development, tech-support, etc.).  If you sell them for $50 you will have to
sell more than 6 times as many as if you sell them for $100 to make the same
amount of money.  Probably closer to 8 or 9 times as many copies.  That's
because while the gross profit is exactly 6 times as much, you now have an
increased burden for your support lines.  Will cutting the price in half
actually sell 8 times as many CD's?  This is a very difficult business decision.

>Ed from Rebel realised this and cut his price in half. He can see the way the
>market is. And since he will not allow the SSDF to rate his program, I think he
>is even in a worse position.
An interesting remark.  Cutting the cost of the program may not drive sales the
way that Ed would like.  And a rating of computer verses computer that has a
different program a few points higher will drive a buy decision.  Is that the
only reason that people buy chess programs?  So that they can beat a different
chess program 5% more often?

>The catalog I get from my chess dealer when it advertises chess programs always
>give the SSDF rating and position or where in came in some chess tournament. And
>even though I know the programs, if I do not see something that impresses me, I
>will really not give it a fair go.
>
>Chess programs especially Haircs7 are a rip off in my view, even though it seems
>to be a strong program. I am not going to pay nearly 4 times more than what I
>bought CM6K for, and twice what I got Rebel 10 for, to get that program.
A bargain to me.  But I need the EPD processing capabilities of Hiarcs.

>IF the companies want to keep their prices up, then I think you will see less
>quailty work, because they will not sell enough programs, they will have to cut
>their R&D and staff. And they will instead of bring an update out every year,
>will start turning into three years. And eventually they will just die, where as
>the makers who know how to market and sell their product will survive.
As you can see from my discussion above, cutting the price will not increase
money input into a company unless sales skyrocket.  The money these companies
make is what they use to make our programs better (hopefully)!



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