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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