Marketing Case Study

Awesome Bits Games: Managing a Controversial Pricing Scheme

Resources

Author: Eric Dolansky

Online Pub Date: January 02, 2019 | Original Pub. Date: 2019

Subject: Consumer Behavior, Direct Marketing, Pricing

Level: | Type: Experience case | Length: 4216

Copyright: © Eric Dolansky 2019

Organization: fictional/disguised | Organization size: Small

Region: Northern America | State:

Industry: Creative, arts and entertainment activities| Publishing activities

Originally Published in:

Publisher: SAGE Publications: SAGE Business Cases Originals

DOI: http://dx.doi.org/10.4135/9781526476128 | Online ISBN: 9781526476128

© Eric Dolansky 2019

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes. 2021 SAGE Publications Ltd. All Rights Reserved.

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This content may only be distributed for use within University of South Florida. http://dx.doi.org/10.4135/9781526476128

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Page 2 of 6 Awesome Bits Games: Managing a Controversial Pricing Scheme

Resources Exhibit 1: Past ABG Kickstarter Projects

Year Game Kickstarter Funding Goal (USD)

Basic Pledge Level (USD)

Highest Pledge Level a (USD)

Money Raised (USD)

Number of Backers

2012 Mages of Wallcadon 5,000 25 116,938 2,955

2012 Deathlands 20,000 75 3,000 781,597 5,258

2012 Ancient Warriors 20,000 45 3,020 909,537 3,459

2012 Mutiny Battle: War for Ivory

20,000 80 5,000 951,254 4,278

2013 Manicsport 20,000 90 3,000 356,752 1,427

2013 Deathlands: The Second Chapter

25,000 50 2,000 2,225,018 8,844

2013 Battlebolts 25,000 90 500 582,316 2,464

2013 Emperor’s Ire 50,000 50 200 718,152 3,756

2014 Palace Challenge 50,000 90 410 774,222 4,885

2014 Deathlands: The Third Chapter

100,000 90 150 2,849,064 12,011

2014 Ale & Blood 50,000 90 100 739,513 4,417

2014 Deaconplace Attack 25,000 45 50 242,832 3,367

2014 Blood, Sweat and Tears

25,000 45 50 66,703 1,139

2014 The Specter of Fog 25,000 45 50 101,351 1,770

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2015 Surrounded: Children of the Void

50,000 85 90 567,350 4,744

2015 Valhalla Calls 50,000 70 75 905,682 9,825

2015 Deadly Sins: The Outsiders

100,000 90 100 1,464,489 10,136

2015 Palace Challenge: Hellscape

100,000 90 100 1,710,714 9,991

2015 Deathlands: Pestilence

125,000 100 150 4,078,954 20,913

2016 Deaconplace Attack: Murderswamp

30,000 55 60 383,407 4,398

2016 Ale & Blood: Dawn 80,000 90 100 917,864 5,794

2016 Palace Challenge: Dungeons

60,000 60 65 1,010,959 10,862

2016 Giant Abyss 200,000 110 120 3,560,643 22,361

2017 The Specter of Fog: Mammon’s Rise

70,000 100 120 1,174,130 7,892

2017 Jester’s Crown: The Miniatures Game

300,000 150 1,690,466 9,040

2017 Eastern Empire 300,000 100 4,228,060 31,262

2017 Deathlands: Emerald Isle

300,000 120 5,004,614 27,236

2018 Loathing 200,000 120 1,469,489 10,227

2018 Deathlands: In Space! 250,000 100 150 3,352,208 18,486

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2018 Palace Challenge: Flight

30,000 65 316,018 5,272

2018 Undead Rising b 200,000 100 310 1,256,370 9,561

Note: Bold type indicates a sequel or expansion project rather than an original game.

a If blank, there was only one pledge level.

b Campaign ongoing at the time of the case, four hours into a two week campaign.

Exhibit 2: Sample Comments About the Undead Rising Project, Posted on Kickstarter

“Disappointed. Kickstarter exclusives suck.”

“Greed has replaced quality and customer service. Nope nope nope no way.”

“I’ve probably backed a dozen Kickstarter projects in the past three months, but I wouldn’t back these greedy jerks if they priced it at ten cents. These idiots need to be stopped before everyone thinks it’s great to do business this way. Disgusting!”

“I’ve had enough! Crappy Kickstarter project. Beware!”

“ABG’s eagerness to take advantage of customers is simply too much. It’s unethical and unacceptable.”

“I cannot support a game publisher using such awful business practices. Game looks good; terrible way of running it. It’s a ripoff and a crime. Fail.”

“I believe I have to express myself over how ABG has been doing its Kickstarters lately. Price gouging, early bird pricing (after saying they wouldn’t do that) is a terrible thing to do to loyal fans. Even though they’ve been successful for years, ABG doesn’t listen to its fans. Kickstarter exclusives and the backlash for their ‘Loathing’ game should have taught them a lesson.”

“I’ve never commented here before, and hope I won’t have to again. I’m doing it because of ABG’s cash grab garbage on Kickstarter. There needs to be a protest and boycott to make them stop, but that won’t happen because gamers need their plastic.”

“Even though the giant statue is cool I can’t see it being worth the money. I hope that everyone shelling out all that money enjoys the game.”

“I don’t want the piece, personally, but I want the final chapter. I hope you find a way to decouple the content from the plastic.”

“If there are economies of scale, why do the later pledges cost more? Making more of them should lower the price for everyone.”

“Cash grab central, but it’s working so I guess we’re all idiots. Almost $1 million already, so ABG is being able to give us less and charge more.”

“What’s the deal, ABG? I just got an e-mail saying your project launched and the big piece is sold out already?”

“If I wasn’t a zombie fan I’d have run from this project already. I still may …”

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Page 5 of 6 Awesome Bits Games: Managing a Controversial Pricing Scheme

“I had high hopes for this and it’s a huge let down. If you’re going to force money from us with a big finale locked in an inaccessible pledge level, why should we care?”

http://dx.doi.org/10.4135/9781526476128

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