Quoted from Tyler_Durden:That's what I'm saying, if every model "on location" is a stripped down version, is that a preferable unit to get people to want to buy a better one, which mind you, they don't even know exists?
You mean like most businesses? Ever gone to a car dealership? Yes, every model has exactly the same options - no choice! Typically you have several trim lines and in many cases can order a mix of option packages. I guess the auto manufacturers never figured out the one model/package suits them all and would maximize profits (I think Former Communist countries tried this approach and it didn’t work very well).
Think about what you just wrote. Different models for different class of buyers works very well and will maximize profits.
But here is the big plus for Stern. With their LE model - they never have to worry about a BOMB because they have recouped their costs even if they never sell many Pro’s. That Limited title causes people to buy before they see/play. So even if a title doesn’t do as well as expected they never lose money (just do not make much). They never have complete busts like CSI, 24 and even IronMan initially. They nearly went bankrupt because of their losses when a title underperformed. The LE model has completely solved that for them. Now they still have to put out fun games but they could tolerate several underperforming games in a row now and not miss a beat. This was not the case in2008/2009.
We may not all like the side-effects of the model (higher prices, unfulfilled demand, etc.) but from a business perspective it is a top notch approach. Stern did not invent it they just modelled it after something that works in many many industries.