Pre-Ordering Games, Consoles, & Books Episode.056

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I’ve never really been a fan of pre-ordering things.  I feel that if you’re going to produce a product make sure you have enough for the demand, but I realize that companies don’t want to waste money by making more product than the consumer’s demand.  Pre-ordering can give them an idea of what kind of demand it is, but those are just for initial sales by people who are aware of the product’s soon-to-be existence.  Theoretically there should always be more people who will buy a product after the initial pre-order phase is complete.

Video games are by far the worst practice of pre-ordering.  I have never in my life seen a video game that sells completely out of stock the first week it is released.  There are always copies available at some store whether it’s at your local brick-&-mortar store or online at Amazon.  One way or another, you can always buy a copy of the video game you want.  Perhaps companies give you incentives to pre-order such as in-game items or extra content.  Generally these pale in comparison and quite often are released as “new content” at a later date such as a Game of the Year Edition.

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Pre-ordering things that could have bugs such as video games or other electronics is really a large gamble.  This is especially true for video game consoles.  Electronics have such a huge volume of executions that it is quite easy to have errors or bugs that pop up.  Companies may run their product through Quality Check, but the product only has so much of a window before the higher-up execs demand the product to be put on the market to start making a profit.  This can lead to rushed products that aren’t quite ready for the consumer.  This is when you find bugs.  Yet when you pre-order, you are giving those execs even more evidence to rush the product out the door: if they have $1,000,000 worth of pre-orders, they won’t see a dime of that until the product ships.  This will cause them to become greedy and encourage their company to continue to rush their product before it’s ready.  When you pre-order, you are essentially acknowledging that you are okay with an incomplete game.  So when you put that game in the console for the first time and it doesn’t boot up right or crashes during the middle, you simply have no room to complain.  It’s actually closer to being more your fault than the company’s.  Granted the company who made a poor quality product should not have released it, but if enough consumers are willing to pay full price for an incomplete product, naturally companies are going to release it.  Some companies value quality over quantity, but the bottom line is that every company exists to make money.  If their reputation is not tarnished from shipping broken games, they will continue to do so.  Generally they will not have a damaged reputation because they can always go back to the financial reports and publicly announce their sales.

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A minor graphic bug

Now the one thing within this blog’s genre categories that pre-ordering might be beneficial are role playing games.  Although it still goes hand-in-hand with the concept of video games in which you should print more than the masses because you are hoping that eventually they will all be bought (or the majority).  Printing books does cost more than producing a physical copy of a game.  That’s a fact.  There isn’t much involved in burning the contents to a disc and printing a label on the top then putting it in a case and shipping it.  This is even truer with PC games that are almost entirely digitally produced now (few hard copies are put on shelves anymore).  So for that thought, pre-ordering (especially for PC games) makes even less sense because there is essentially zero overhead cost on releasing the game.

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Most expensive pre-order ever – This car along with a PS3 and GRID 2 – £125,000

With hard copy books it is another story, however.  Companies prefer not to produce too many copies to where they have a shelf full of books that were never purchased.  If they have to decide, they will most likely want to error on the side of caution and produce fewer than the demand.  Books are done in “print runs” where they will have a certain number of books produced.  Small publishing companies may only have 500 copies whereas larger companies may have 1000s or 10’s of thousands.  When these are all bought, the company then has to either order more copies to be printed or do it themselves if they have the means.  This, however, takes usually more than a month to do, sometimes 8-10 weeks depending on the lead time the printers are looking at.  Some roleplaying game companies have an agreement with a printing company to dish out their books, but that printing company doesn’t just sit around and wait for their order.  They have other companies requesting their service such as schools for textbooks and yearbooks.

Pre-ordering books does tend to make for a better decision if the number of copies is in question.  Basically the rule is the smaller the company, the more reason to pre-order.  Now again, it’s essentially to just make sure you don’t have to wait 6-8 more weeks more for the 2nd printing.  If a company runs out of copies, they are going to print more until they consider the product expired and deem it out of print.  This only occurs when sales have dropped below a percentage per month, which means you have already bought your copy.  Larger companies, Wizards of the Coast for example, produce so many copies that you end up finding the books in odd locations like Wal-Mart.  Pre-ordering really is pointless at that point because the availability will be considerable.

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Now having said all that, companies have a bad habit of not producing enough copies on the first print run and blaming it on the consumers.  This is a give-and-take issue because the pre-orders would help them make a better assessment on the number of issues to produce, but generally when a company runs out of copies quickly, as in the first week or two, that’s really a horrible mistake on their part.  This happens way too often too, and the consumer usually gets the same famous line from all of them: “We were completely overwhelmed by the sheer enthusiasm from fans that we ran out of stock!”  This is one of the worst business moves you can make because it does 2 things.  First, your company stops making money for 6-8+ weeks while you wait for the next batch not only to be printed BUT to be shipped to stores.  Second, you hack off the consumers who were unlucky and didn’t receive a copy and are forced to wait while those who did get a copy are enjoying it.  When a game is released, that is going to be the “hottest” point in sales.  Usually.  Granted there are exceptions where a product doesn’t get noticed by the general consumer for several months (or years…I’m looking at you Game of Thrones).  When you run out of product while there is still a huge demand for it, you run the risk of sales going cold while you wait for the next printing.  Consumers are fickle and have short attention spans.  Our interest burns bright but burns out quickly.  New things come along that clouds are memories of the past.

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So when you are about to jump on a band wagon or you become excited for something that is soon to be released, take a moment to reflect the situation and ask yourself if it’s worth it or necessary.  Are you frustrated with video games having bugs in them when you buy it?  Are you annoyed when you go to your local gaming store and find your game out of stock?  Are you looking at your sales from the last product and realize the demand is great for this new release?  Try to refrain from being too hasty and make smarter purchasing decisions and stop encouraging poor business choices.

Until next time, lie about your dice roll as much as you can get away with.  Thanks for stopping by.

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