Long, boring post ahead...
Quoted from CaptainNeo:Your numbers are skewed for the fact that Stern machines would still have the Full version around $4400 right now if it wasn't for Jacks $6500 price announcement. So the proper pricing if you feel jacks game is 130% of a Stern. It should be based upon what the normal current Stern price would have been at this point.
You keep saying that like Stern issued a press release announcing that they were raising their prices to better compete with JJP... except that that kind of thing only works with cable TV and cell phone companies!
However, I do believe your premise is flawed. You say Stern would have a "full version" now for $4400 if not for Jack. I'm going to assume by "full" you mean games like BDK, SM, LOTR, and so forth.
But what about the pricing model that Stern already estabilished when they released the stripped-down Iron Man a year before Jack announced his company? A little RGP digging shows the street price of Iron Man to be about $4200 at the time, but I'm going to lowball it at $4000 for this argument.
Using my BOM (Bill of Materials - specifically for the playfield) method, a game like BDK, SM and TSPP has roughly 1/3rd more "stuff" than a stripped game like Iron Man and the other Pros (heck, it's literally 2/3rds more stuff than a Rolling Stones Pro). So, if Stern kept up the same "value-per-dollar" estabilished before JJP, a "full" version of Iron Man would be priced 33% higher at... $5320. Which is - quite interestingly - almost exactly what the "full" Avatar LE was priced at before JJP came around (I see $5200 street price), and then the same for Tron LE a few months after Jack announced. Granted those are LEs, but you didn't have any choice if you wanted the "full" game.
Now, I know these BOM percentages sound entirely arbitrary, but I have actually taken the time to work this out for WOZ and about a half dozen Stern games, and the BOM increases I show are mirrored almost exactly by Stern's price increases.
So, we've estabilished that Stern would very likely charge $5200 for their "full" games even without Jack around. Now, the newer Premiums/LEs do have roughly 25% more "stuff" than those former "full" games, which would place Stern's price for a Premium/LE at... $6500. Until Metallica, that's in the ball park of what they were charging, right? Up to $6900 for an LE, maybe a thousand less for Premium?
How can Jack actually be to blame for Stern not selling the Premiums at $4400 when the "value for dollar" that Stern is currently using was already set into motion long before Jack ever came around? I feel that the real blame falls on the investors who had Stern slash their bill of materials without decreasing their prices. Ever since then, Stern has not re-adjusted their profit margins, and the result of adding those features back and then some is the prices we see today.
While I do believe that Stern took note that people actually bought WOZ at $6500, Jack priced a luxury product at a luxury price. How ironic is it that the luxury product is also now the value leader?
Let's use $6200 as Stern's price for a Premium machine like AC/DC Premium. Using the BOM method, WOZ has roughly 54% more "stuff" than that AC/DC Premium (not counting topper, 150 RGB LED lighting system, 26" LCD, higher quality materials and so forth). Based on that, if Stern were producing WOZ... they would likely price it at $9500. $7000 seems like a bargain, huh? My estimates go beyond $11,000 based on Metallica's new price point.
But then again, since people are still buying at Stern's new prices, perhaps they are just fine after all. Frankly, I'm not at all looking forward to seeing what Star Trek rings up at...