What a rip off

[JBaymore]

I have no idea how well the payware market is doing but but remember game companys can sell ther products for say 50$ each instead of 200 because they sell a lot of copies. Payware dosen't have that kind of market and dosen't sell as much so to make a profit prices are higher.  

Bingo!  I feel that payware scenery and aircraft are actually a bargain in most cases in relation to the effort that it takes to develop them (example PMDG 747).....if the quality is there.

best,

...................john

[Alphajet_Enthusiast]

To expand on what John just said (which I believe is absolutely true):

Payware products are most likely price inelastic. That is, the quantity demanded of them changes very little following big changes in price.
This is due mainly to addiction I would think. For example, payware junkies like Ashar. Even if the price of payware was increased by 50% he would still buy nearly as many add-ons.
However, if the price of payware is halved the quantity demanded of Payware products would not double as one might expect. It might increase by a quarter, because the market is so small for payware products and the number of addicted payware junkies is limited. Many people strongly believe in only freeware.



Look at this Market diagram I drew in photoshop. Demand is inelastic. As you can see, the large change in price from P1 to P2 causes a rather small change in demand from D1 to D2.
Because the total revenue is depicted by this formula:
TR = Quantity demanded X Price per unit
The area under the coloured lines represent the total revenue payware companies earn.

So, as we can see at a higher price (the red line) the area under the line (total revenue) is much larger than for a low price (blue line).

Payware companies are earning for themselves as large a revenue as possible at high prices. We discussed recently how this is an efficient way of allocating payware products.

An important concept:
Demand at a given price measures people's willingness to buy a product at that price.
So from this we conclude: people who buy the payware at high prices value it more than people who do not, hence it is a fair and efficient method of distribution which ensures that people who value the product enough will have it and people who dont will not.

However, this is of course a big generalisation, as economics thrives on generalisations.

Rest assured then, that obviously there is a price at which demand is no longer inelastic and demand would plummet beyond that price. So rest assured, the price will not keep rising forever.

Thats my economics revision for today...  ::)

[SilverFox441]

Let's compare payware to watches....strange, but an enlightening comparison.

If you really wanted you could go out and buy a Rolex...for a price that would get you a Timex watch every single day for several years.

You would buy the Rolex based on whether or not the price was more important than the style, class and exclusivity afforded by the Rolex.

The exact same functions with payware add-ons. You will base a purchasing decision based on whether the price or the subject, fidelity to prototype and exclusivity is more important.

In either case...those complaining about the high price are generally unheard, but do serve as a good indication of whether the price is too low.

[SaVas]

Let's compare payware to watches....strange, but an enlightening comparison.

If you really wanted you could go out and buy a Rolex...for a price that would get you a Timex watch every single day for several years.

You would buy the Rolex based on whether or not the price was more important than the style, class and exclusivity afforded by the Rolex.

The exact same functions with payware add-ons. You will base a purchasing decision based on whether the price or the subject, fidelity to prototype and exclusivity is more important.

In either case...those complaining about the high price are generally unheard, but do serve as a good indication of whether the price is too low.

You forgot to mention the every 3 year service that costs $250 to 400, and the autowinder box which for a decent one is about $800, however if you do take care of a Rolex it will be a hand me down for generations, and they do keep impecable time. That and while I wouldnt buy one personally, I have yet to turn down a high tier watch as a gift.

The 14k/ss Submariner is a gorgeous watch (just have to watch out for ogling eyes lol)

[Felix/FFDS]

Consider also the constantly changing flightsim market - that which was fantastic payware a year ago, is suddenly out of touch because of a new tool, even a new sim version.

Note that Alphasim, for example, released a number of payware products as freeware.  Granted, they were for previous flightsim versions, but, they'd run their course.

*In general* a payware company has to get a quick return - within 3-6 months.  After that, the prices start tumbling.

If it's a shelf (boxed) product, the company has to start buying back unsold stock, etc. etc.

It's not as simple as demand x price, but that's part of the equation.

[C]

The texture stuff is mostly by PSS...that has me mad too..

To be fair, PSS are just capitalising on the people in the market that must have everything straight or very soon after it comes out. Wait a few months and most of their products are published (boxed) by Just Flight...

[JBaymore]

[quote]Thats my economics revision for today...

[Gary R.]

Just my 2 cents here.  My copy of COF cost $34 at the time.  When it came out it was $48-$54 depending where you buy, $48 at Walmart initially ($29.97  now) Anyway, I would have no problem at all paying nearly double the initial release price for the sim IF all the included aircraft were of PMDG, Flight1, Feelthere etc. quality, detail, and systems implementation.  All airliners with complete functiona overheads, avionics, FMC's etc.  All GA aircraft with exact duplication of realworld GPS (think realityxp here).  Yes, let them indeed make it all as real as it gets for REAL and charge an according price and my debit card would still clear leather.  Just my 2 cents.

[FS_Pilot]

I agree, If they followed their own advertising slogan and made thenm "AS REAL AS IT GETS" then i would also be happy to pay more that way we wouldn't have to fork out for so many add-ons to make it more realistiic. If they contracted a few of these companies that supply add-ons then they would have a superior product they could sell for more money which people would be happy to pay,. also the add-on companies would also make more, better for all & It would actually end up costing us less in the long run.
FS_Pilot

[eno]

I agree, If they followed their own advertising slogan and made thenm "AS REAL AS IT GETS" then i would also be happy to pay more that way we wouldn't have to fork out for so many add-ons to make it more realistiic. If they contracted a few of these companies that supply add-ons then they would have a superior product they could sell for more money which people would be happy to pay,. also the add-on companies would also make more, better for all & It would actually end up costing us less in the long run.
FS_Pilot

If every aircraft in FS was up to the quality of PMDG then its likely that only the very well off would be able to afford it.
A. Because the initial unit price would be in the 100's ($/

[FS_Pilot]

Eno, you contradict your own remarks

The current version of FS IS as real as it gets for the CURRENT crop of machines

Then you also say

If every aircraft in FS was up to the quality of PMDG then its likely that only the very well off would be able to afford it.  

Which is it? The PMDG are "As REAL AS IT GETS" or The Microsoft default Aircraft are"As REAL AS IT GETS". Which is it, make up your mind. Judging by your signature it appears to me you are biased towards payware. If i was a payware vendor selling a few hundred packages a year i would jump at the chance if the price was right to have my aircraft as part of the Microsoft FS package distributed worldwide. Everyone wins.

[eno]

FS_Pilot you obviously didn't get the point of my thread.

If the payware manufacturers had their products incorporated into FS it would either mean that the product would need to be diluted to a point where the majority of computers would be able to run it or, the sim would have a price for the consumer that most of us wouldn't be able to afford or be able to afford the computers to run it on.

As FS stands, it runs reasonably on most peoples computers it doesn't cost too much and the aircraft included are reasonable replications of the real thing, within the constraints of the sim.

It's a fantastic base for both free and payware developers to improve on.

And yes your observation is right I do have a bias toward payware ...... I go out and earn the money to pay for it and apart from the occasional beer it's the only luxury I allow myself.

[FS_Pilot]

I do agree that a lot of computers would not run an advanced version of FS but there should be two versions Standard & Pro. The standard for the average person who just wants to fly a toy around and make a few rough landings. Then there is the person who wants to fly it like a real pilot with all the bells and whistles. These people who cannot afford to go to an airline for some real FLIGHT SIMULATOR TIME but want it to be as close to the real thing without the enormous price tag. I for one would want that to be in one complete package with one price tag even if that price tag was 200% more than the standard version. his way i would know how much to save instead of having to save for one thing then realise i need another somewhere down the line. I still believe there would still be an ongoing need for further payware as not all aircraft makes and models will be catered for. Even the FS model at this moment in time needs a lot of work to allow for certain additions to be workable but if the developers work as one this is very achivable. The FS Model has the ability to be as functonable as a million dollar simulator within the boundries that PC Hardware is presently capable of.

I still believe that MS and payware designers could get together to make an excellent top notch complete pro version of FS.

I have said my 2 cents worth and will now step off my soap box.

[Gunny04]

Why would it be hard to run? Most payware I've had (Scenery) Has made my comp run better, Now My comp has ran FS Fairly well with paywar (since the day I bought it and it aint no luxury) so why wouldnt all payware quality run? my 6200 I got for 39.99 grouped with this 1 and half year old comp gets 15-40FPS in most places when it works on max settings...... I dont think it would cause Major issues really with technology, However this is just my humble opinion! Cheers, Gunny

EDIT: Planes are the same but they tax it a little, until I got a new graphics card thats not exactly up to date!

[eno]

The reasoning behind my statements... you might want to read
THIS POST and the thread.