PC Games Examiner Interview with Brad Wardell

This is a pretty decent interview. I didn't like Brad's explanation of why games that are digitally distributed cost the same as their retail counterparts, but that's just my own opinion. (Brad is clearly telling the truth, but I think the response was not the whole truth.) 

Truth !!!!!!! What does truth have to do with anything. Its all about making the money. Give me the cash and I`m good to go. So what if I let the gaming community down. Yes, I realize things are heading now in a different direction. I`m tired of hearing half truths and pasting blame. Lets move on. I can not wait for Derek`s version of Elemental. It should be everything we were expecting from Brad`s version that we did not get.

Freebird out.

The controvery around DD pricing isn't so much about the savings on box, DVD, and manual, it's about the overhead needed for a brick and mortar store, inventory holding costs, and many other issues that make up the margin between the typical cost of each product and what it has been sold for.

That is why digital distribution should be substantially less than the classic approach, not so much the box and such.

If a company (Stardock's) way to making money is giving long-term satisfaction from their products, then I hope they make lots of money.

Mistakes happen, if Stardock was say, your typical company, I would probably go through a few weeks of trolling myself and acting like some of the immature folks have been on this forum, I do understand the rage, especially given the high expectation, and especially if said folks never played GalCiv.  That said, that isn't the case, so I've been willing to give SD the slack that was given- and those 1.19 patch notes look like they'd solve a lot of problems.

This is what I meant when I said I don't think the response is "the whole truth". I completely agree with diamondspider. I wasn't trying to complain about Stardock or EWoM's launch issues. That topic's been discussed thoroughly and is completely dead to me.

I agree that isn't the whole truth, but I don't think it should change.  When I was a kid, I bought brand new 8 bit Nintendo games for $50.  Today, 20+ years later, I buy brand new video games for $50, or maybe $60 for consoles.  That seems really strange to me.  Were they super over priced back then, or are we getting one hell of a bargain now? 

What is that acronym he used to explain the high price of digital downloads?

I loved this response.

Well, Google suggests http://en.wikipedia.org/wiki/Cost_of_goods_sold, but you surely knew that already ...

This is what people typically think when they see DD price being the same, however what they don't realize is that if DD prices were sold for less, this is the same as price cutting your own product. Retailers will be forced to discount products to keep up with the lowered price (why would you go out and buy it for 50$, when you can get it conveniently, at home, for less?). Not only does your profits from retail stores drops, but you run the risk of pissing off the retailers, and won't be able to get shelf space later for new products.

This is just the tip of the iceberg, it's a much more complicated issue than it seems, and as someone already pointed out, a full discussion on that wouldn't be possible in an answer to an interview. So while it may not be the "whole truth", I just think that Brad didn't wanted to go into that whole mess rather than anything else.

I'd like to point out this little blurb ( i know he's kidding lets just get that out of the way  )

Adam:

According to Wikipedia, you enjoy beekeeping.  Is that true?  What other hobbies do you have outside of Stardock?

I’m really getting into human cloning. The basement of our building has a number of large “jars” where we grow more developers and other key personnel for future expansion. Sometimes, I go and tap on the glass to see if they smile. J

But yea, I do a lot of beekeeping in the Summer. I just wanted a hobby that didn’t involve computers. I’m also into electronics. But mostly I just like to do stuff with my wife and kids when I’m free.

Jon, Derek, i think your jobs are on the line here 

I make rail signalling simulations here in the UK. You can download them for a paypal fee or I can send a disk.

The one is ostensibly "almost" free (server costs - paypal cash withdraw fee - a few pennies) the other costs me rather a lot.

What difference does this make versus large retail?

Zero inventory waste, zero transport logistic cost, zero premesis rent (an ENORMOUS cost), zero retail staff ANOTHER ENORMOUS COST, zero packaging, zero third party profit requirement (Game etc do expect to make a profit you know)

I also used to work in Electronic Boutique - I know the retail cut on games - I also know the printing cost of written manuals. That's not to mention 4 or 5 retail staff and a retail premses rent of close on $100,000 per year (and that's cheap for city centre).

You should read Activisions game cost breakdown from 2008.

If it's costing you the same to distribute digitally as it does physical - then you are doing something very VERY wrong.

Scritty

The clone stock is of low quality. I am unconcerned for now.

Jon

Are they? How do you know you're not a clone?

I have made sure of it.

You ask such a question, but verily - are we all not but clones?

Jon

"insert major panick"

Frogboy if you happen to come around this thread there is one thing I would like to know.

I've read a post from you before where you mentioned that Steam/Valve and Impulse/Stardock were not that different in size and/or capital. Yet on this interview you define steam as being ahead in capital. I'm curious as to just what this disparity is and how does the digital download world ranks steam, impulse, Gamersgate, D2D, GoG etc.

Also, if you please post your speach at GDC whenever you come around to making it. It would be very interesting material.