Yea, founder packs are really expensive for us, but since they’re global, I understand why their prices need to be equalized, otherwise people would bypass steam to pay less than they should and that could ruin the game’s economy for NA/EU servers.
But after launch it would be really amazing if they could regionalize prices for South America so we all have a fair experience and can support the game too.
Not that I am against applying regional pricing for SA if it’s region locked, I just have a question for those who are strong advocates.
If one particular region gets preferred pricing, are you guys also with the quality of service also being a fraction of what other regions receive?
Frankly, it’s hard to imagine cost on AGS being a fraction of what it would be for NA/EU in terms of servicing the game, and it’s an ongoing cost, unlike package games which is a simple one time purchase deal.
Again, I don’t have problem with region-locked regional pricing, but curious what you guys think about other side of the equation that never seems to get considered.
But why would SA get a fraction of the quality of service?
I’m assuming that if the service is being offered on SA, it means infrastructure (probably the major cost) will also be hosted in SA. To ilustrate, let’s take electricity for example, the service would be priced based on SA, where the server is being hosted anyways.
Now going back to your issue, I can make the same argument if prices aren’t regionalized. With prices being so high for SA, it’s pretty natural to assume that AGS would probably not profit from the region as mush as they would from NA/EU, causing them to not deliver the same quality of service.
Think of it this way, if a skin costs 15 USD (85 BRL) very few SA players will be able to buy it, so Amazon will be making close to no profit on SA servers anyway. But, if they regionalize the price for SA to something like 6 USD (33 BRL) a lot more players would then be able buy that same skin, resulting in a lot more money for Amazon in the end.
It is better if you sell something thousands of times for 1$ then if you sell it once for $100, it’s not like Amazon will lose any money by making the prices fair for SA, since they already paid Smilegate for that content anyway.
Latin America is the 4th biggest gaming market in the world, with Brazil being the 10th country worldwide, so we have a lot of paying players willing to support the game, but if things are too expensive people won’t be spending on them.
Considering AGS is a US based internationally operated company, and the core development team that will handle the service related issues will also be mostly US based resources, outside of some local CS elements, in terms of labor cost involved, there shouldn’t be a huge difference between running NA/EU server versus SA. It will be less to a degree, but definitely not 1/3~1/4.
Considering the infrastructure cost, it will probably be hosted through AWS in SA. Electricity and whatever infrastructure related cost, will probably be less compared to EU/NA but that’s also hard to imagine to be 1/3~1/4 or even less cost.
The argument that not regionalizing prices will decrease revenue is always a double edged sword. If you are selling items at 1/5 price, you need to sell 5x in terms of individual item sale. Considering microtransaction F2P models have very lopsided revenue structure, there’s no guarantee that making items more approachable will generate more revenue as a whole when 80-90% of revenue comes from 10% of the audience in the first place on average F2P games.
People with money will spend money anyway regardless of price. If the price gets reduced, it just means people with the means will spend less money to obtain the same end result, and you are sacrificing top side revenue with low side revenue. Again, there’s no data that proves that this type of practice always resulting in higher revenue overall.
In all honesty, I think everyone would have been much happier if local company picked up publishing rights instead like they did in RU where they will base all cost and monetization to fit the country the company is based in. It would have avoided all this unnecessary headache because on one side, equalized pricing does not feel fair to SA region with less GDP, but on the flip side, it’s also not fair for EU/NA to carry the extra burden while other region gets preferred pricing. That’s without taking into account rampant RMT and economic damage it would cause if RP is practiced without region access restriction.
I know the country I live in enough to assure you that fair prices makes us spent A LOT MORE on things, best example I can give you is Twitch.com (owned by Amazon). A sub used to cost the same for US and SA (5 USD) and we hardly ever subbed to anyone (aside from Twitch prime free sub, which is region priced at less than 2 USD for us), then a few months back Amazon decided to cut the price of Twitch subs for Brazil, they went from 5 USD to 1.40 USD and as a result most Brazilian streamers more than tripled their sub count, I had never spent a single dollar on Twitch before this and now I’m subbed on 6+ channels, simply because it isn’t stupid overpriced for us anymore.
I can afford to buy 85 BRL skins without any problems, but the price is so high based on our economy that I won’t even consider buying it. Now, if they cost like 33 BRL I would happily buy a bunch of them, resulting in me spending way more than 85 BRL at the end of the month.
SA servers and people working here to keep them up are paid based on SA economy, not NA, so the cost for maintaining those will be in line with our economy.
Regardless of regional prices for SA NA/EU prices will be the same, how could making the price fair for a completely different region make NA/EU “carry the extra burden” if nothing will change for them regardless? I don’t get why you guys have to be upset when people that are poorer than you are offered fair chances at things.
Idk about AGS specifically, but Amazon has offices in Sao Paulo, Brazil (where the server will most likely be located), with brazilian employees, being payed brazilian currency (really well payed btw, but not as nearly as well as a US employee). So I’d say labor cost will most likely be proportional to that.
Talking about AWS specifically. I’m not any cloud computing expert or anything, I do know AWS does not offer regionalized prices (come on Amazon), but why would they need AWS? Afaik, if you have a “physical” local server at your disposal that you will use to host something, why would you need AWS? Unless they don’t have professionals that can take care of setup and configuration etc (which I hardly doubt), and would need those pre-config services from AWS.
This is the part I completely disagree with you. I’m not any Dubai oil prince, but I live a pretty comfortable life, and I can buy any of the founder’s packs if I want to. But I won’t cause prices are blown out of proportion. I can grab the money I would spend to get 1 Platinum Pack and pre-order Elden Ring (probably the most antecipated AAA title of 2022) not once, but twice, and I would still have money left.
As a final note on the topic, the fact that Lost Ark is F2P might play a big part in this, but for New World they did regionalize the price.
Amazon does not equal Amazon Games.
Also, they will be centralizing work required for all regions, outside of areas that require local manpower. It’s not individual server requiring whole separate team to work on them as if they’re separate games. In other words, outside of local labor costs, which will be minimum and most likely limited to CS, all the labor costs will be centralized, distributed 3 ways with 1 region who will be more than likely making much lower revenue compared to others.
Because AWS is owned by Amazon and going out to purchase and running physical local servers wouldn’t make sense from their perspective. There wouldn’t be any incentive for them to not use their own service offering that is already set up and does not require additional hardware or manpower.
NW is a packaged game and frankly they needed the number of copies sold as high as possible to try to bring a W after years of failure, which definitely incentivize regional pricing.
Also what you’re describing for your situation is an example of how making price cheaper ends up prompting more people to make a purchase, which does not automatically equal more total revenue or profit, which was the point I was making.
Again, I just think it would have benefited everyone if people who kept pushing for AGS to pick up OCE or SA rights and focused on contacting their local companies, because you guys are still demanding for more and appear to be not too happy despite your demands being met. However this ends, it’s hard to imagine everyone coming out happily ever after.
I still can’t see how regionalizing prices for SA would hurt anyone in any way, expect for selfish people living in 1st world countries that are elitists and can’t be happy for someone else being treated fairly.
You’re creating a bit of an oxymoron here. You’re talking about regional pricing being “fair” solely from relative GDP perspective. From another perspective, it’s anything but fair because objective view of “fair” would be paying the same amount for same product from same company. In other words, trying to justify regional pricing as “fair” isn’t a sound argument to make. This is even more so the case when the cost is shared for the product which is the situation we are in.
This is precisely why it would have been much better if local company purchased publishing rights instead of piggybacking off of AGS as that would have alleviated all these types of headache.
Please, explain to me what’s the difference between a local company buying the rights to publish the game on SA and Amazon doing the same thing? Both companies would be paying the same price for the publishing rights, so why the hell do you think that any other company should be offering regional prices for SA but no Amazon?
The way i see here is that you consider SA as an inferior region, you’re just mad that Amazon heard our voices and got the publishing rights for us too. We’re not “piggybacking” off anyone, Amazon paid for publishing rights for SA, same as any other company would do, maybe even LESS since they already had a deal for NA/EU, so your point makes no sense at all and every time you try to defend your argument it looks more and more that you just can’t accept that it’s fair for SA to have regional prices because we’re at least 5 times poorer than NA/EU.
because “publisher rights” are in this case usually a cut. So all it does is shrinking 200m Brazil to 20m of NA paying customers. Small, but ok.
But the operating costs include salaries. And there’s the difference. You want to pay 1/10th for consuming a workforce of the people who pays 10x more then you for a living. Becuase 1000 customers paying 1/10th of maintenance support would still generate 1:1 maintenance and support issues NA customers do.
Local company would not have this problem. First, they would be naturally isolated. Not interfering with other regions. Like RU is now. Second, you would pay cheap labor force, wouldn’t you.
Running an MMO doesn’t have nearly 0 marginal costs like the single player games do. But in this case I believe it’s more technical problem then anything. Trying to split homogeneous environment proved problematic already.
Amazon is already spending that money regardless of SA since they have to do it for NA/EU anyway. The only “extra” they would have to spend is using local servers (paying local money for it) and hiring a few people to run customer service for SA (again, paying local people local salaries to do it) so I still can’t see why you think Amazon would be spending any more money than a local company would, imo they would spend a lot less since most of the expensive stuff is already done for NA/EU anyway and all they need to do is buy a few local servers for SA and the game will be ready to go.
SA won’t be getting extra voice overs, not even translated subs, we will be literally playing the exact same game as NA/EU but with our local servers, making it really cheap for Amazon.
maintenance, operational costs… I’ve never mentioned one-off costs. But that was strictly about what Helleios was talking about and you asked.
I personally think it’s simply not worth it for them to do. The reality of F2P is 80% of income comes from 20% of players and it’s a nesting rule. That itself eliminate all those “minimum wage” guys purchasing platinum editions and such. They don’t matter. All that really matters are few guy who simply have enough money even in Brazil. That’s how it is. And you don’t want to give them even more resources if they can already afford a lot. Or solve all those technical issues with geoblocking that are all easily bypassable in the end.
I’m not here to oppose your arguments or efford just to partly explain how things really are.
The standard “sell it cheaper so more poor guys can purchase more stuff” doesn’t really apply in these waters. It only works in situation where price is finite. Here it isn’t.
You’re missing my point here, even though operacional costs should be the same (or even lower) to Amazon than it would be to any other locar company, since it’s the exact same product.
My point is that even for people with enough money, if the price is ridiculously high for our economy they just won’t sell anything, regardless if people can or can’t afford it. I’m not sure about how things work in NA/EU since you all can afford to spend tons of money in games, but here in SA if a skin is super expensive people will be angry and even if we can afford it we won’t be supporting that. Just imagine a single skin costing 100 USD, I’m sure a lot of people could afford that in NA, but most players just won’t support a game that is charging that much for a single skin.
Regional prices are a thing for a reason, and it works for everything else, games, products, even New world (made by Amazon) has regional prices for the game itself and for the in game cash too.
The price of the founder’s package can be expensive. But quite possibly the price of the cashshop is cheap the same as in the New World cash shop (for someone who lives in Argentina). Since amazon is the publisher, let’s hope it is that way and that only the price of the founders packs will be expensive.