Comments on: The Commercialization of Home http://www.hsmagazine.net/2011/10/the-commercialization-of-home/ The PlayStation Home Magazine Fri, 13 Feb 2015 21:20:50 +0000 hourly 1 http://wordpress.org/?v=4.1.2 By: NorseGamer http://www.hsmagazine.net/2011/10/the-commercialization-of-home/#comment-46383 Wed, 26 Oct 2011 10:00:31 +0000 http://www.hsmagazine.net/?p=16439#comment-46383 Totally agree. The one thing I keep thinking about, which can’t really enter into this equation yet, is the Hub. We can’t yet talk about the Hub beyond what’s already been officially disclosed, but I think I’m safe in saying that there’s *a lot* of free content for the community to enjoy, which undoubtedly cost a fortune to develop. If the price tag for this is putting up with experiments in higher-priced commodities, that’s a trade-off I’ll gladly accept.

Any time the loyal customer base collectively complains about something, I like to look at whether or not it’s a tangible or intangible complaint. If it’s tangible, such as the five examples listed in the tail end of the article, then I agree that it’s hard to fault them. Where it gets tricky is with intangibles, because perception and reality can be two totally different universes. This is where some really strategic PR presence can pay off.

When it comes to commercialization in Home, my personal take on it is that it’s a shame Home had to give away the house for so long to get its feet underneath it, because now it’s built up an expectation within the community as to what the general parameters are for various types of commodities. Changing those parameters can be a real challenge, because people are apt to forget the awesome bargains and all the freebies and focus in on rising average prices for stuff they want to purchase.

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By: HearItWow http://www.hsmagazine.net/2011/10/the-commercialization-of-home/#comment-46323 Wed, 26 Oct 2011 03:48:31 +0000 http://www.hsmagazine.net/?p=16439#comment-46323 Ultimately it comes down to a question of value. I know a couple of people who buy everything that comes out, literally, everything, because it’s part of what makes Home worthwhile to them. They love all of the new content, decorating personal spaces, etc.

(Side note: You do not have the patience to wait for these people to get out of their wardrobes. Log out and play a game for an hour and come back. They won’t realize you’ve been gone).

Then there are those, like myself, who buy judiciously. Diamond suit for $15? Not gonna happen. Scariachi Band for $1.99? I’ll take two. That’s a steal. Scribble Shooter? Love the game, worth the money to me. Same with the Mech Jet.

These are the sort of reasonable customers that the Home managers would do well to cultivate. I can think of a couple of people on my Friends List who don’t have much disposable income at all, but they’ll still go out and buy the things they really like. The only danger here is making more content than they can afford. We can be stirred to anger when something really falls outside of our vision of the pricing model, such as the Lockwood handbags.

Then you have the crowd that shouts “That’s greed! Why does it cost so much?” I’m convinced that the reality for most of these ki-- er, people, is that they want the items and lack the means to afford them. They’re aspirational, but they don’t buy anything. anyway, so the price isn’t really an issue. The passion they have for the items is reflected in the vitriol they spew against the developers. They’re the ones that scream at the accidental Mech Jet discount. They wouldn’t have bought it at $2.99, either, but that detail gives them some supposed leverage to rail against the managers.

There is a small subset of this group that falls under the judicious category, actual buyers who feel genuinely ripped off when something doesn’t perform as expected. Scribble Shooter brought this crowd out in droves, and it’s hard to argue with their position. At that price, a game had best behave in expected ways. That blunder raised suspicion among this group of buyers, and they’re keeping their money on the sidelines unless they’re 100% confident in a purchase. I don’t blame them at all for feeling this way.

The last identifiable group is the freebie hunters, who log in to grab whatever rewards they can get. They might spend $20 a year on a personal space. They won’t complain about prices, because they don’t buy much to begin with. Anything they do buy is something they completely love. This is the group that most likely keeps The Green Ticket and personal spaces atop the sales charts for months on end.

The vast majority of pricing complaints, as I see it, come from those who are not loyal customers to begin with. There are times, however, when something stirs up the loyal customers, and those are the cases where I would hope management takes notice.

There are psychological barriers in place. Each of us will look at a thing and form a mental evaluation of its worth. Successful developers, and that includes the Sony team, will find a way to price toward the high end of our expectations and discover success in doing so. They’ll also throw out the occasional mad bargain, like the Scariachi Band or the Spiked Demon, that nudges us toward a higher-priced item in the future, because we want to reward them for the great deals they’ve given us in the past.

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By: deuce_for2 http://www.hsmagazine.net/2011/10/the-commercialization-of-home/#comment-45319 Sun, 23 Oct 2011 05:00:55 +0000 http://www.hsmagazine.net/?p=16439#comment-45319 Wow! What a great article. BTW, what I know of the numbers you estimated, you are in the ballpark. Amazing for someone with no access to real numbers. Your general business knowledge has humbled me.

Something else to ponder -- How many people complaining would actually buy the items that they complain about if they were changed to match their criterion? My understanding is that a large percentage of the forum posters have never bought anything. I have heard rumours that the people in the forums who do buy are some of the best customers, but those who buy less tend to not buy at all.

Another question is -- How many of the complainers are uner 18? If they get an allowance and Home starts to inflate prices, Home may be losing some customers. I wish we had some stats on the users so we could put their comments in context.

There are all sorts of psychological behaviors being poked at here. I have read about tests where people were paid for a task they would be inclined to do for free. When the monetary incentive was taken away, they were less likely to do something than they were before being paid. Hence, what I refer to as the Reward Effect. Now it is hard to make a game in Home that does not have Rewards built in.

The one thing all makers of online gaming agree is that complaining is a constant that you have to accept. The worst thing to happen is that people stop complaining. The opposite of love is not hate it is indifference. As long as they keep complaining, at least we know that they still care.

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By: tbaby http://www.hsmagazine.net/2011/10/the-commercialization-of-home/#comment-44909 Fri, 21 Oct 2011 20:53:33 +0000 http://www.hsmagazine.net/?p=16439#comment-44909 Nice article Norse. Your on point about this too! :D

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By: cthulu93 http://www.hsmagazine.net/2011/10/the-commercialization-of-home/#comment-44875 Fri, 21 Oct 2011 18:23:25 +0000 http://www.hsmagazine.net/?p=16439#comment-44875 TYVM.

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By: keara22hi http://www.hsmagazine.net/2011/10/the-commercialization-of-home/#comment-44728 Fri, 21 Oct 2011 08:15:19 +0000 http://www.hsmagazine.net/?p=16439#comment-44728 Unfortunately, the people who spend time on the Forum whining about prices or accusing everyone of being greedy s.o.b.s who are trying to clean them out will probably never read this article.

The only way you would get them to come to HSM is if you promised to publish daily lists of every freebie and ‘prize’ and trophy you can get for nothing in Home. Even when a lot of things are free and others cost very little, there will be those who complain that the freebies aren’t good enough and that 49 cents for a shirt is highway robbery.

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By: NorseGamer http://www.hsmagazine.net/2011/10/the-commercialization-of-home/#comment-44721 Fri, 21 Oct 2011 07:26:06 +0000 http://www.hsmagazine.net/?p=16439#comment-44721 “I believe Sony would be better off not trying to do things in half-measures; this ‘games now and hope for the rest later’ idea seems odd to me. Why not blow the socks off everyone and give us the best of all worlds? I’m greedy, I guess, but I don’t really want to choose between gaming and social aspects. I WANT THEM ALL. The exclusion of one or the other makes Home half the virtual world (and cash making machine) it could be.

“I would not fault them for being too greedy — I would fault them for not being greedy enough. There is huge growth potential for entertainment(of which games make up a part) on Home. The biggest slam against Home by most people is that there is nothing to do — and games may alleviate some of that feeling, but there is room for much, much more entertainment for a price.”

Bam. That’s it in a nutshell. Awesome response, Cthulu.

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By: Jersquall http://www.hsmagazine.net/2011/10/the-commercialization-of-home/#comment-44596 Thu, 20 Oct 2011 21:00:18 +0000 http://www.hsmagazine.net/?p=16439#comment-44596 Norseling, Great read. I feel like you nailed it down in a great many ways. I feel like this business about selling and capturing the buyers interest were all expressed in your article. article hell.. it’s a book. lol

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By: cthulu93 http://www.hsmagazine.net/2011/10/the-commercialization-of-home/#comment-44518 Thu, 20 Oct 2011 13:18:45 +0000 http://www.hsmagazine.net/?p=16439#comment-44518 I agree with you for the most part but where I start to disagree is when we are told that games are the only way to the financial promised land for Sony.Concerts could quite easily be monetized if a cover charge were used to gain entry(probably best used with popular big name bands),and they would be great places to place ads and insert new clothing items(on the avatars that are singing)for sale.They could even make it so that the clothes items could only be bought at the concert location which would be a great way to track just how much cash is being made this way.New avatar actions could also make large sums of cash as well,as just about every couple I know on Home would pay quite well for these.Furthermore there is a place for disgruntled Home users to go and it’s called disc-based games,IF Home is to become all about games then there is not much difference from going to a disc-based games lobby,chatting with friends for awhile,then playing a 1st rate game.There might be small price and quality differences but the basic idea is the same.I believe Sony would be better off not trying to do things in half-measures,this “games now” and hope for the rest later idea seems odd to me.Why not blow the socks off everyone and give us the best of all worlds?I’m greedy I guess but I don’t really want to choose between gaming and social aspects,I WANT THEM ALL.The exclusion of 1 or the other makes Home half the virtual world(and cash making machine) it could be.I don’t fault Sony for trying to make more cash with games,I fault them for leaving a pile of cash on the table by not adding more social aspects(Indeed if that’s what’s happening because I’ve heard very little about what’s coming other than games).I would not fault them for being too greedy,I would fault them for not being greedy enough.There is huge growth potential for entertainment(of which games make up a part) on Home.The biggest slam against Home by most ppl is that there is nothing to do and games may alleviate some of that feeling but there is room for much,much more entertainment for a price.

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By: Burbie52 http://www.hsmagazine.net/2011/10/the-commercialization-of-home/#comment-44517 Thu, 20 Oct 2011 13:18:30 +0000 http://www.hsmagazine.net/?p=16439#comment-44517 That was a wonderful way to lay this subject out so everyone can understand the reality of Home and its commercialism. I will never understand how people could ever think it wasn’t created to sell things. Though at first, when it was a new thing in closed beta, I am sure it wasn’t so blatant.
But with growth comes change and with change comes complaining I guess, it is human nature. I believe it was Abraham Lincoln who said,”You can please some of the people some of the time, but not all of the people all of the time.” And that’s the truth.
Sony has some issues to deal with when it comes to certain areas, but who doesn’t? Business or not we are all human beings and as such we will never be perfect. So get used to that idea and let them do the best they can to rectify the problems as the come up. If you have a problem let it be known, then be patient because, like it or not, I am sure you aren’t the only problem they have to deal with.
Great read Norse!

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By: keara22hi http://www.hsmagazine.net/2011/10/the-commercialization-of-home/#comment-44447 Thu, 20 Oct 2011 07:37:34 +0000 http://www.hsmagazine.net/?p=16439#comment-44447 The bottom line is: there is always a bottom line.

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