The business problem I see as an anal beancounter is that by offering such an extensive new game like PoN for way too cheap is that AGEOD is setting a dangerous precedent. Customers will then expect all their games to come out really cheap afterwards. While AGEOD may sell more units will AGEOD actually profit from this game? Will a bunch of new customers buy PoN very early on while it is still very buggy and then get turned off by all the bugs, thus wiping out those new customer gains as they decide to not buy another AGEOD offering?
I would have been quite happy with less of a discount, like around the $40 or 40 Euro mark. I would also not quibble about paying an extra $5 for a boxed version over a mere download. The problem with cutting the price in half or more is that it will take more than double the sales to make the same net profit. One has to look at the Gross Profit, sales less direct costs of production and sales, to see how much more than double the units sold needs to be sold to reach the same Net Profit.
I'm not too sure how this vastly reduced pricing will work out for AGEOD but I hope it turns out well. At $20 I'll probably order early on just to snag that cheap, cheap pricing before the powers that be wake up to the reality of business. Then I'll shelve it for a year or two before playing after a few patches come out and the game is less buggy and frustrating to play.
I keep thinking of the Borders bookstore chain here in the USA which just filed for bankruptcy, they pretty much discounted themselves into bankruptcy by giving out way too many discount coupons. Now they've cut way back on offering discount coupons as they struggle to get out of bankruptcy and back into profitability. I hope that this greatly reduced pricing experiment doesn't blow up in AGEOD's face, only time will tell.
