Are we all being screwed?

[Peench]

Now that gaming has become the huge business that it is, has it gotten to the point where the game is not the end goal, but simply making the most money as possible off gamers is? Sure businesses are out to make money (at least most of them are), but does that mean they have to take short cuts, overcharge for things, or price fix to make more money?

I've been loosely following the unfolding story of alleged price fixing by Sharp and Hitachi in relation to the LCD displays on Nintendo DS's. Here's the story (to avoid the lame popups on this UK times article)

The Nintendo DS, the handheld games console adored by millions across the globe, has become the focus of a price-fixing investigation targeting two of Japan’s largest electronics companies.

The headquarters of Sharp and Hitachi were searched yesterday by investigators from the Japan Fair Trade Commission (JFTC) as the monopolies watchdog tightens its grip on a corporate Japan riddled with unfair business practices.

The raids are thought to be a direct result of Japan’s recently enacted “whistle-blower law”, a significant legal change pushed through by the JFTC that grants amnesty to the first corporation within a price-fixing cartel to own up.

The raids on Sharp and Hitachi are understood to relate to an investigation into the pricing of the liquid crystal screens on the Nintendo DS — the machine that has sold about 65 million units since its launch.

When the DS was released in 2004, Sharp met 100 per cent of supply. A year later, as Nintendo struggled to meet soaring worldwide demand, Hitachi joined as a supplier of LCD panels.

It is at that point that the alleged price-fixing began, according to sources close to the investigation.

Sharp and Hitachi are thought to have reached an agreement that panel prices would remain stable, despite obvious competition between the two suppliers and the overall downward pressure on LCD panel prices.

It is not the first time that Sharp and Hitachi have been scrutinised by monopolies watchdogs in Japan, the US and the EU.

The two companies were part of an international investigation of LCD panel price-fixing in late 2006 that focused on screens used in televisions and PCs.

The alleged cartel at the heart of that investigation involved companies from Japan, South Korea and Taiwan.

The Japanese Government continues to tighten its anti-monopoly laws, and has recently proposed even more draconian reforms to drive out the “sickness” of collusive behavior between corporations.

The JFTC, which only recently was granted the weapons of arrest and fines in its battle with the cartels, is expected to be given even broader powers to fine and prosecute.

In a recent interview with The Times, Kazuhiko Takeshima, the chairman of the JFTC, said that consumers should expect to find their interests “actively protected” by the regulator — suggesting that mobile phones, food and other consumer goods would become the focus of future investigations.

Both Sharp and Hitachi confirmed that they had received visits from JFTC investigators, but declined to comment any further.

Source

So what's the deal? I mean granted these two companies are not directly making games or gaming devices, but does that mean that other gaming companies aren't doing similar things? Is there really a shortage of components with which to make a Wii? Or has Nintendo simply not ramped up production? Or what about the Xbox 360? Were there really too many short cuts taken to rush it to market? Is that why so many of them are dying now? Or the PS3. Why are there so many models? Is Sony simply blowing out old stock of stuff by putting it into a new model every few months?

I don't know the answers to these questions but I'm starting to wonder if the gaming world will continue to be tarnished by these "big business" practices.

So what do you think? Will a general mentality of screw-the-gamers continue as the gaming industry continues to grow?

[Thornes70]

Dude - let me answer your question with a question: do drug companies make all that cash by providing a cure to the disease, or a solution for the symptoms?

Common side effects include swollen thumbs, limbs falling off, and eventual death in a lonely, lonely room...

[Crippler]

I had to vote YES. But it was a hard yes. I think, as the industry gets bigger and bigger, I'm more inclined to think that we are getting shafted in ways. The most obvious is console game prices vs PC games. Why do we pay more for, in most case, less content? To me it's was just BS marketing of the idea of 'next gen' to up prices. Higher res textures and thus art and time. pfft. PC games have had high res art for YRS before this gen of consoles. Then the Marketplace on Live comes to mind. IMO, it's just a way to nickel and dime console gamers for content that PC gamers get out-of-the-box or for content that should have been there in the first place. I also have no doubt that Nintendo keeps inventory low to help keep demand up thus helping justifying the Wii's retail price longer. Come on. It's the simplest console yet they can't make them? Please. It will be interesting to see if Nintendo's name plays into this DS screen shit. I doubt it will though.

[MadBryan]

and ingame advertising is at an all time high. While I don't expect that to make a game free it should have been enough to keep the prices at last gens $49.99

[ZoomZoom71]

I suppose as long as people keep buying games at $59.99 (and higher), they'll keep selling them for that much. Same goes for the consoles. If ya don't like the price, don't buy it.

[supafreak]

Originally Posted by ZoomZoom71

I suppose as long as people keep buying games at $59.99 (and higher), they'll keep selling them for that much. Same goes for the consoles. If ya don't like the price, don't buy it.

It took me a while to realize that it is just best to rent most games and to buy the few must have games.

[Crippler]

Originally Posted by ZoomZoom71

I suppose as long as people keep buying games at $59.99 (and higher), they'll keep selling them for that much. Same goes for the consoles. If ya don't like the price, don't buy it.

That would be like not buying gas because I don't like the price. It's Catch 22. So, that leaves me with the option of not gaming, ever.

[ZoomZoom71]

Crip, I understand exactly what you are saying. While the "need" for games isn't quite on par with the "need" for gas, your point is taken. I wish I understood economics and the whole "supply and demand" concept to a greater depth, but I don't. By and large, these businesses are doing what their shareholders want them to do: increase their value. As long as they're creating (and pricing) a product that consumers will buy, the shareholders will be happy with the return on their investment.

I personally believe that I'm getting a good return on my entertainment "investment", based on how often I buy games, and how often I play those games. I'd never get the quality of entertainment I am getting from the games I've bought by going anywhere out in town for an evening. Would I love the price to be lower? Yeah, of course, who wouldn't?

[dmiller68]

Cheated is a pretty strong word. I think that console gamers are cheated because our price is jacked. I keep looking at the ads and go why do I console game vs. PC game? Price fixing doesn't surprise me as it has been going on for a long time in the electronics industry.

It is going to be an interesting time in Japan with the new law. Now you will have workers who are consumers turn in there bosses for the hope of better pricing.

[TheEman28]

Gamers are not the only one being cheated. Look at the price of gas, milk, stamps...etc. Supply and demand may be one thing, but video games fall into a different category. As long as they are popular it's another way for companies to make some cash.

[Peench]

Tell me about it! Good point Eman. I filled up with gas this weekend at a station by my home. It was $3.74 per gallon. The station by my office, on the other hand, was $3.54. Not sure why the difference, but dang!

[TheEman28]

Sorry Peench! That does got to hurt. I thought I was getting bent over by paying $3.18 here in the Chicago Suburbs. I feel for ya man!

[lovekeiiy]

I voted cheated, but it's not an absolute cheated. This is not the first time the populous has paid almost $60 per game. Way back in the day, Atari games were over $50, and back then because of the money being made, a lot of companies were putting out crap in a little plastic box; see Atari 2600 ET, Superman, Empire Strikes Back, and so on.

What we are seeing is the market changing right now. Although I may not like spending $60 a game, I will if it is a good game. If it's good, I figure I'll spending anywhere from 30 to 60 hours on the game. Not a bad deal considering alternative such as movies--theater or rent--sporting events, clubs, and so forth.

Where I really feel gamers get cheated is on the DLC on consoles. There is a lot of content console gamers have to pay for whereas the PC version gets free. If it was only a couple bucks, no big deal. But $10 is ridiculous. PC gamers get bent over in the constant having to upgrade their machines to be able to play the newest games.

I'm a little more lienent about the in game advertising since most of the time it doesn't take away from the gaming experience. And I just figure it gives the game developers some working capital to make the game. It's not like the big games are cheap to make anymore.

And yes, the point of making games is about making as much money as possible. Unless the game is free and designed to be free to begin with, then in that case, it's about making the best game experience possible and the love of making a game. Granted, I do feel most of the game companies try to make the best game they can for the gamers, but they still out to make money.

[R1Raven05]

Today's prices just kill me, take diesel fuel for instance, diesel is a by product of making gasoline. But yet they charge way more currently for diesel than gas, by my house currently diesel fuel is $3.85 per gallon, it costs me about $97.00 to fill it the other day, that is just ridiculous. Should I sell my truck and buy something smaller that is better on gas and better for the environment, maybe but that just isn't who I am. I have always liked big trucks and diesel is just to easy to add tremendous horsepower to for much less money than a gas vehicle.

[AlphaQ GehaD]

Posted by Thornes

Dude - let me answer your question with a question: do drug companies make all that cash by providing a cure to the disease, or a solution for the symptoms?

OOOOOOO,OOOO, *RAISES HAND*

They provide solutions for the symptoms, and make money by often times getting you hooked on the medicine, and including GREAT side effects that make you want to use more medicine.

But it aint only the Drug Companies fault im pretty sure the Doctors get paid a lil extra something to insure that he keeps you uncured so you keep having to go in to get more prescription.

Thats how it is for many cases...like a person who takes medicine for Gout, Instead of the doctor just explaining what types of sodium he should not take or reduce and what salts he should take they give him medicine and say whenever you do get it take this.

For the videogames its a mixture, some are just making money and taking all the shorts like movie/videogame releases, Madden, etc...

Some are doing it for the Gamers but also to build up REP.

[Thornes70]

Dingdingding! Give that man a prize! L