Original Post — Direct link
5 months ago - /u/kovarex - Direct link

Originally posted by narrill

For it to be a reasonable argument to me personally one would need to explain why the devs nowadays deserve to be compensated less for the game than they did when it launched in 2018.

100% disagree, and frankly this take is baffling to me. Every game ever released is affected by inflation, but Wube are the only devs I've ever seen react to that by increasing the price of their existing product. Most devs just create and sell new content, which I don't think anyone has a problem with.

What is baffling you? I personally prefer fewer quality games supported for a long time rather than small sh*tty releases over and over. Also, games are getting cheaper and cheaper every year due to inflation, which is not a good thing. Again, as a consumer I perfer less more expensive games compared to a lot of cheap games, or more likely to microtransaction driven games, which are automatically corrected for inflaction.

This is why I believe that someone should make a first step and work towards this being the norm. When I pay rent, I get a letter every year that my rent was increased by X % due to inflation, and basically everything is getting more expensive, why would game devs should stay behind?

5 months ago - /u/kovarex - Direct link

Originally posted by narrill

What's baffling to me is the idea that you guys should be exempt from the very predictable blowback from increasing the price of your game for no other reason than to keep with inflation while:

I'm sorry, but this is something lots of people would see as greedy, and they're welcome to that opinion.

It's also baffling to me that most of the comments are defending you as pro-consumer while you're in here trying to paint "rent goes up every year, we should be able to do that too" as a noble cause, as if people are totally cool with getting gouged by their landlord every year.

I don't even have a problem with the price increase, but come on. In no universe are a few bad reviews because of this unreasonable.

Based on the way you comment, I believe you are confused about the inflation.

We didn't increase the real price, we just adjusted for inflation, the price in real value was kept more or less the same. As inflation is still strong, I believe that in some time increase from 35 to 40 dollars will be necesary, again not our fault.

We are not in any way responsible for the fact that the goverments are printing a lot of money and decreasing the value of the existing money by that. If you have problem with that, talk to your goverment and try to change it. If your country, whatever it is, didn't have any inflation, the price could be kept the same in that country, and rents and price of everything wouldn't have to go up. Inflation is basically a multiplier to all prices, and it is a norm that it is automatically included in long term contracts.

I don't see any reason why games should automatically get cheaper with time, and even if someone decides to make their game cheaper, I don't understand why should it be by any means be controlled by the rate of inflation. These two things should become separated.

So ... talking about greed seems very confused to me.

5 months ago - /u/kovarex - Direct link

Originally posted by narrill

No, I'm not confused about what inflation is. That's a fairly condescending suggestion.

Increasing game prices to match inflation simply isn't done, not even by reasonably priced, high-quality games with no microtransactions and free ongoing updates, and you're saying you feel you should be entitled to do it despite your studio not having any need to.

I don't know what you call that if not greedy. And Valve already adjusts their regional pricing recommendations every year based on consumer price indices and purchasing power, so you ended up hitting a bunch of regions twice for the same inflation.

I don't see any reason why games should automatically get cheaper with time

I do: you paid for the labor to make the game when inflation was lower, and distributing it to new consumers costs you next to nothing. So why should the price track with inflation?

If you'd waited until Space Age's release, which will actually add content to the base game, no one would have batted an eye.

Regardless, trying to initiate this separation when your own studio admits it has no financial need to adjust for inflation is going to be seen as greedy by some people. I don't get what's hard to grasp about that.

I believe that in some time increase from 35 to 40 dollars will be necesary, again not our fault.

This is a wild thing to announce in some random comment thread with some random redditor, jesus christ.

"Increasing game prices to match inflation simply isn't done."

And what? Do you think that only things that are done already should be done? You should learn to stop using this kind of argument, because it is invalid. Regarding the adjustment, I think that everyone should do it because it makes sense, I hope that other game studios will follow.

"you paid for the labor to make the game when inflation was lower, and distributing it to new consumers costs you next to nothing. So why should the price track with inflation?"

There are 4 errors in this statement, let me explain:

1) The cost of labor has very little to do with cost of the product. You have the investment cost, the risk of the investment (the bigger risk the bigger rewards often), and also the the demand for the product.

2) The labor wasn't done, the game is being worked on. Which, by your logic, should mean it gets more and more expensive every year, even without the inflation.

3) The money put into the game earlier was in the earlier value of money, so if someone pays for it now, it needs to be corelated against the value of the money earlier, otherwise they would get it cheaper without any reason for it. So your argument just supports adjusting inflation not deny it. In other words, if they paid earlier, the money could be invested and it would be more in nominal value compared to now.

4) The price of distributing to new consumers doesn't have anything to do with it. The price of distributing was the same before and after.

"Is going to be seen as greedy by some people" greedy is very subjective term, but they are generally incorrect in this assesment.

"This is a wild thing to announce in some random comment thread with some random redditor, jesus christ."

Nothing new was announced, we made it pretty clear we want to adjust for inflation.

P.S. The main reason of money and the capitalistic system is, that entities which makes product/services which are demanded and regarded good get eventually more resources to be able to provide more of the good stuff. So it doesn't really matter how much labor is put in it or how much actual cost it had. The extra money provide the opportunjity to provide more good products in the future and/or the possibility to try more risky products with the cussion of being able to survive some of the risky products not being successful.

Since the game industry is very risky, you need to earn several times more the cost of the develpoment to come even with the successful product, because in the long run, it needs to finance the other tries which are not successful until you hit something good again.

I hope these points gave you a possibility to see things in a new perspective, have a nice day.

5 months ago - /u/kovarex - Direct link

Originally posted by narrill

I have no idea how you can say "greedy" is a subjective term, acknowledge that you're adopting a less consumer-friendly pricing strategy than everyone else for no other reason than that you feel you can, and then turn around and say people are "generally incorrect" for seeing that pricing strategy as greedy.

Beyond that, a lot of what you're saying is simply wrong.

You have the investment cost, the risk of the investment (the bigger risk the bigger rewards often)

Factorio was crowdfunded, and you sold early access through almost the entire development process. Compared to the vast majority of game projects your investment and risk were both extremely low.

The labor wasn't done, the game is being worked on.

The vast majority of your work since 1.1 (which as I've pointed out was two full years before the price increase) has gone toward Space Age, which is a new product you plan to sell. So no, the only work you were doing on the product whose price you increased was minor bug fixes and optimizations, which is expected for any game of this caliber.

Again, if you'd waited until Space Age was released to increase the price I don't think anyone would have cared.

The main reason of money and the capitalistic system is, that entities which makes product/services which are demanded and regarded good get eventually more resources to be able to provide more of the good stuff. So it doesn't really matter how much labor is put in it or how much actual cost it had.

I don't know why you would think appealing to capitalism is a good rebuttal to people who think what you're doing is greedy. Capitalism is inherently greedy, and is seen that way by the average consumer. Especially now, when the world is hot on the heels of simultaneous periods of record inflation and record corporate profits.

"I'm increasing the price of our product because I think I can get away with it" is exactly the kind of thing people see as greedy.

Since the game industry is very risky, you need to earn several times more the cost of the develpoment to come even with the successful product, because in the long run, it needs to finance the other tries which are not successful until you hit something good again.

Again, this doesn't apply in your case because players were funding Factorio through nearly its entire development. And has your team even worked on any other projects? You can't argue that you need to increase prices to make up for failed projects when your first and only project was wildly successful for nearly a decade before you thought of increasing the price.

Nothing new was announced, we made it pretty clear we want to adjust for inflation.

When you raised the price to $30 you said "This is the final Factorio price update, unless something unforeseen happens," and when you increased the price to $35 you justified that by saying the levels of inflation at the time were "unforeseen." So yes, if the price is going to be regularly updated to match inflation going forward, that is new information.

I hope these points gave you a possibility to see things in a new perspective

Respectfully, I hope you eventually learn that getting in condescending arguments with your players on social media is not a good way to get them to see things in a new perspective. Although I'm sure you already know that.

"Acknowledge that you're adopting a less consumer-friendly pricing strategy than everyone else"

Are you trolling? I would say we are more consumer friendly than about 99.9% of other companies.

"Factorio was crowdfunded, and you sold early access through almost the entire development process. Compared to the vast majority of game projects your investment and risk were both extremely low."

Wrong. After we put more than year of work working 14 hours a day 7 days a week for free. This, lets say a million dollars worth invested. It is many times more than the money we got in the campaign and could go all into nothing. So the risk was already there. And after the campaign, we invested all of the money to keep going while barely getting along for another year at least, so even more risk, extremly big risk, when you think about how many games are released, and how many don't make anything.

"The vast majority of your work since 1.1 (which as I've pointed out was two full years before the price increase) has gone toward Space Age"

Wrong.

"Again, if you'd waited until Space Age was released to increase the price I don't think anyone would have cared."

Wrong.

"Capitalism is inherently greedy, and is seen that way by the average consumer"

Wrong.

"Especially now, when the world is hot on the heels of simultaneous periods of record inflation and record corporate profits."

Wrong. (Not fault of capitalist, but governments printing money)

"I'm increasing the price of our product because I think I can get away with it"

Wrong.

"Again, this doesn't apply in your case because players were funding Factorio through nearly its entire development."

Wrong

"You can't argue that you need to increase prices to make up for failed projects when your first and only project was wildly successful for nearly a decade before you thought of increasing the price."

Wrong, I can, as long as you acknowledge thinking about future is ok.

"Although I'm sure you already know that and are only doing this to justify your behavior to yourself."

Wrong

It really looks, like your whole worldview is somehow build on incorrect assumptions. So the problem is not in the logic you apply, obviously, if these things were correct, your conclusions would be understandable, but the assumptions are just wrong.

5 months ago - /u/kovarex - Direct link

Originally posted by narrill

Are you trolling? I would say we are more consumer friendly than about 99.9% of other companies.

But your pricing model isn't. The entire rest of the industry allows their games to depreciate with inflation, and you're saying you won't do that. That is a less consumer-friendly pricing strategy.

And you're deluding yourself if you think you're the only consumer friendly studio out there, especially among projects of this caliber. I can think of several other projects off the top of my head that have no microtransactions, have put out years of large, free updates, and have never increased their prices. Two of which are your largest competitors, Satisfactory and Dyson Sphere Program.

After we put more than year of work working 14 hours a day 7 days a week for free.

It wasn't "for free," it was for the product you were planning to sell, which you did end up selling many years before it was even finished.

Most studios do not work for a year and then sell their unfinished game in early access. They work until the game is done and sell the finished version, which typically takes far longer than a year.

And I don't have a problem with early access, to be clear. I think it's a smart strategy for smaller studios working on more niche projects. But it is still objectively the case that doing this massively reduces your risk compared to most projects.

"The vast majority of your work since 1.1 (which as I've pointed out was two full years before the price increase) has gone toward Space Age"

Wrong.

1.1 was the only major update you released for free before the price increase. That's not arguable. You also did work to port the game to Switch, but this was for a new product and was not given to players for free, and while you did later port the controller support back to the base game, it didn't happen until several months after the price increase.

Outside of that all the updates were bug fixes, optimization, and modding API support, all of which are expected for a game of this caliber and generally not enough to warrant a price increase based on project scope.

Wrong. (Not fault of capitalist, but governments printing money)

This is not correct, and unless you can cite something supporting this belief I have no reason to think it's based on anything but your own desire for it to be true.

Here is an article from the Economic Policy Institute stating that rises in corporate profits, not monetary policy, was disproportionately responsible for the rises in inflation.

Here's a similar article from Fortune.

I can find more, if you want.

"I'm increasing the price of our product because I think I can get away with it"

You literally just argued that demand for your product justifies your decision to increase the price with inflation when no one else in the industry does, because pricing is based on demand and not on the cost of production.

"Again, this doesn't apply in your case because players were funding Factorio through nearly its entire development."

Wrong

You just now said you operated on investment for roughly a year, and for the following year you were just barely able to make back your costs through sales. That means my statement is correct. You were self-funded for a year, player funded and breaking even for a year, and then were making a profit for the following, what, four years of early access?

That means the game was player-funded for nearly its entire development. It was only that first year that you were actually taking on risk.

Wrong, I can, as long as you acknowledge thinking about future is ok.

No. Your project had been a financial success for many years by the time you decided to increase the price to match inflation, there was no longer any risk of failure at that point.

If you're saying you increased the price to put money away for the next project, which might fail, all I can say is that if any other studio on the planet told players they were raising prices on their existing products for the sole purpose of funding future projects, they'd get rightly crucified.

It really looks, like your whole worldview is somehow build on incorrect assumptions.

It looks to me like your worldview is built on wishful thinking and isn't founded in reality at all. It really should not have to be explained to you why pioneering inflationary game pricing might make people upset.

Let me focus on the most fact based thing to debunk, because somehow I smell this motivates you towards all of this:

Just search "money printing in the us during pandemic". So they apparently printed 27% extra money. And soon after that, there was a surge inflation, what a conicidence.

Yes, I understand there is a big motivation to blame the corporations, and coin terms like greedflation, to somehow achieve that so many people get confused and blame anyone but the real villain.

5 months ago - /u/kovarex - Direct link

Originally posted by narrill

Except that corporate profit margins surged during the pandemic, not nominal profits. That means profits became larger than they should have been proportional to revenue, which doesn't happen with inflation caused purely by an increase in the supply of money.

The articles I linked, which you clearly didn't read, explain this.

Also, no, that has nothing to do with anything I'm saying. You're the only one with a vested interest in pushing a "capitalists did nothing wrong, it was all the government's fault" narrative. You're the one that brought this up.


Edit: I can't anymore with this, this is such a waste of time.

Yes, I know the articles stated that profits went higher, and if the wages didn't go up appropriatelly, than yes, people working for these corporations had wages effectivelly shrinked. But it is a different subject, which doesn't actually explain that corporate greed would cause inflation. It would just affect that these corporations take advantage of it to improve margins.

Getting tired, that is a good sign. We are revealing the errors in the assimuptions you have. These assumptions are creating your worldview, and you are getting tired, because your brain defensive mechanism is kicking on, trying to avoid changing the worldview as much as possible.

“It's easier to fool people than to convince them that they have been fooled.”

So, if I demanipulate a single person it would be worth it.






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