BigPond game service: false economy

Dan Warne
20 June 2006, 9:21 AM


UPDATE |BigPond has corrected a pricing error which affects the content of this story. See the story body text and comments for more information.Internet service provider BigPond is again doing the pony-dance of appearing to create value for subscribers without really creating it, with its new BigPond Games Shop download service.


UPDATE | BigPond has investigated and amended the price of the Tomb Raider game referred to below. Corporate Affairs Manager Craig Middleton writes: "The figure of $89.95 had been supplied to us as RRP. We have double checked and reduced the price to that which Atari promote. As a rule, our prices are RRP for non BigPond members and 20% off for BigPond customers."


Internet service provider BigPond is again doing the pony-dance of "appearing to create value for subscribers without really creating it", with its new BigPond Games Shop download service.The service offers 20 per cent off the price of full, leading-edge commercial game titles, as long as you're a BigPond customer for broadband.The service does let you try out any game in the catalogue for an hour before you have to pay for it, but in terms of pricing, BigPond is selling a false economy.

When I checked the site out, and picked a game at random -- Tomb Raider: Legends -- the '20% off' price for BigPond subscribers was $71.95. At Games Warehouse, it goes for $72.95, and that's with a physical install disk in case something goes wrong with your installation.

But what amazed me was that the price for non-BigPond customers was $89.95 - a full $10 above Atari Australia's published $79.95 RRP for that game.

It's easy to offer a huge discount to your customers when you've inflated the price to begin with.

When I received BigPond's press release announcing the service, it looked quite interesting. It's certainly less lame than BigPond's previous service, "GameNow" (which will continue to run concurrently) which allowed unlimited games to be downloaded and played as long as an ongoing monthly subscription fee was paid.

The trouble with that service was that, as with any all-you-can-eat buffet, the quality of the food wasn't exactly cordon bleu grade. GameNow never had the hottest game titles, so it was never going to appeal to serious gamers.

One would have thought that BigPond would have resolved that problem for BigPond Game Shop. However, its range of games will be no competition for bricks-and-mortar game shops for now.

Hot PC games that one could expect to be in any game store, such as Half Life 2 episode 1, Heroes of Might and Magic 5 and Rise of Legends weren't included in BigPond's Game Shop catalogue.

gameshop350.jpg

BigPond is taking pre-orders for anticipated games like Neverwinter Nights 2, which it says will be available for download the day boxes get put up on store shelves.

On the upside, BigPond Games Shop secures entire game downloads with DRM, so you can copy them to DVD and share them with friends, who also get an hour's free play time.

And BigPond recognises from the outset that people are going to be worried about the DRM failing or their computer crashing and downloaded game being lost.

"Should a customer have a legitimate reason for reinstalling a purchased game, such as upgrading their PC or having a file crash, the site will accommodate a limited number of reloads at no extra charge," said Justin Milne, Group Managing Director of BigPond.


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Derek:

Tel$tra always inflate their prices.

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

emily:

hell yeah they always have some way of making your bills higher

29 February 2008, 8:33 PM (5 years ago)report abuse Send to a friend reply

MisterEd:

"the site will accommodate a limited number of reloads at no extra charge"

So I can download the game, which features an installer locked down with DRM, and if I need to reinstall it at any time I can only do so a limited number of times.

Yay, sounds really good... not.

I would rather buy the game from a shop, which includes a manual and the CD, because I can then reinstall it as many times as I want.

This is just stupid really.

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Craig Middleton (BigPond):

Dan,

Thanks for pointing out the issue with the published price of Tomb Raider: Legends. The figure of $89.95 had been supplied to us as RRP. We have double checked and reduced the price to that which Atari promote. As a rule, our prices are RRP for non BigPond members and 20% off for BigPond customers.

With regards the range of games, the 200+ there at the moment are just for starters. We are adding more as fast as we can encode them. We expect the range to be more than doubled in a few months.

The overwhelming vibe at our launch yesterday was positive. After all, noone else is making BigPond's commitment to investing in innovative products and content for Australian broadband users. Movies, Games and Music are all now downloadable from BigPond. No pony dances Dan, we are just getting on with it.

regards

Craig

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Daniel Kim:

"Hot PC games that one could expect to be in any game store, such as Half Life 2 episode 1"

And why might that be? Could it be that Valve has exclusive online distribution rights through Steam?

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Rolande:

Telstra are wasting there time, their 20% off is a gimmick and noone should fall for it. But then again there were people dumb enough to sign up to bigpond in the first place, so they are probably the ones to fall for it.

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Ray:

Which Goof @ Telstra came up with idea?? - It's the worst I ever heard off

To me it seems like just another Telstra Con Job - Really just ripping off consumer who don't know any better - and that's any young teens.

Any really gamer who think this is a joke. If you were a real gamer won't you want the install CD and manual?? Just Stupid real stupid.... I say sack the guy and the management who approved this wasted time, effort and money.

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Alistair:

I would be surprised if their discount was ever intended to be a legitimate discount or if it was intended to be a marketing exercise.

It'll be interesting to keep an eye on the pricing over the coming weeks/months to see if an article like this might have an impact at all.

Al.

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Steven:

Dan, surely given your position you would understand that online delivery is the future business model for all software providers. Delivering software online rather that via a physical medium is a LOT cheaper (and therefore increases a company's profit). Less and less games now come with a printed manual. Why? Because, amongst other things, it's cheaper to provide a PDF version. Doesn't take a genius to realise that getting rid of the CD and all packaging is the next step. Just look at Valve.

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

boofsayswoof:

Isn't it it illegal to inflate prices and then offer a discount?

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Druss:

I have to admit i like the idea of downloading my games, this is why I purchase a lot through Steam.

Steam don't limit the number of times you can redownload a game though. For this reason alone I wouldn't buy from BP.

Also (i may be wrong here) anyone who downloads from steam recieves a discounted price, a saveing becouse there is no disc or manual to cover. If this is the case then BP is unfairly dealing with non members & is overchargeing if no manual or physical disk provided.

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

nielson:

firstly you have to pay testra for a broadband service (dialup won't work because they time out their users after four hours) which you get 400 MB for 40 bucks when i pay the same with optus and i get 2GB plus another 4GB off peak. rediculous i reckon. telstra are just an absolute rip off, the only thing they got going for them is that they own all the exchanges and phone lines in australia, and that most people go to telstra for internet thinking it to be hassle-free, when they are famous for their downtimes, overloads and other glitches. i know someone who has had so many problems with thier internet that they have spent about 10 hours on the phone with technical 'support' which has a whole heap of people who really don't know what they are doing. Telstra, i wonder why you even bother....

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Dan Warne:

Steven (comment 8) writes: "Dan, surely given your position you would understand that online delivery is the future business model for all software providers."

I sure do Steven -- what I was objecting to in this article was price and range issues.

It wasn't an anti-digital-delivery rant.

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Mark:

Another half baked offering from Bigpond, though no one will be surprised as almost all of Telstra/Bigpond offerings are half baked, you only have to look at the ADSL service they offer and call world class.

Telstra listen, a lot of people are starting to wake up to your nonsense so I suggest you get a wriggle on and catch up with the rest of the developed world.

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Jeremy:

Was it only one game for which the rrp was incorrectly listed? How unlucky was it that you picked that one at random? :-)

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Dan Warne:

Rather unlucky, I would say, Jeremy! Had I not noticed this rather alarming disparity in the price being charged and the RRP, I would probably have been a bit more enthusiastic about the service. I had actually written a story that highlighted the interesting angle that BigPond is essentially applying the shareware model to commercial software distribution, but once I looked at the pricing, that seemed to be the more pressing and relevant angle from the perspective of anyone laying out their hard-earned cash.

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Craig Middleton (BigPond):

Well, now that you know it was an error that was immediately corrected you can be "a bit more enthusiastic about the service" Dan to use your own words! If the 'range and price issues' are based on one supplier error then that's pretty disappointing.

The reader comments above inspired me to check the so-called competitors offering games downloads. One offered a car racing game on CD_ROM for $19.95 or $54 if you wanted to download it. There's great value. I checked a handful of game prices from a competitor's download site and BigPond Games Shop was dollars cheaper in each case.

Our pricing and range will withstand any open-minded scrutiny - I know that our games team is at the very heart of the gaming community and there is no question of their commitment to a quality product.

The range of games will double in the next few months. Noone else other than BigPond is investing in quality download and content services. The fact that a large proportion of our downloads customers are not BigPond members, and therefore get none of the discounts or unmetered content, suggests we are offering a quality service.

Craig Middleton
BigPond

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Dan Warne:

I have updated the article Craig. I will look at doing a followup story on the service.

However, my followup comments make my position clear and I don't imagine many people would read the story without following on to the comments.

I notice you say that your pricing and range will withstand "open-minded" scrutiny.

I can assure you I _didn't_ go into it with a closed mind. As I said in the story (and on the phone to you) I thought the service sounded good and the model was technically interesting.

However before I posted that story I thought I'd better put my "paying customer" boots on and check out the value for money, which is when I hit the snag. One of the reasons I couldn't easily compare games other than Tomb Raider was that I found it quite hard to find titles on BigPond that were being promoted on other online stores.

Admittedly I didn't do an exhaustive analysis of the pricing, but then, nor would a paying customer. It's equally unfair for you to politely have a go at me for forming this view despite BigPond having made a pricing error on one of its flagship game titles.

Perhaps my "pony dance" standfirst was a little abrasive. I'd have thought after all the years that I've been covering BigPond and the relatively good relationship that we've had during that time that you'd have a thicker skin ;-)

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Mark:

I'm all for digital delivery models but I'm not paying basically the same price as the nicely packaged version I get at the shop.

I think the saving's achieved by digital delivery need to cut both ways, not just increase Bigpond's bottom line, so I ain't playing this time.

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Jimmy:

The fact that a large proportion of the customers so far are from other ISPs doesn't really indicate anything, as unmetered content is fairly irrelevant when people already have decent usage amounts provided by their ISPs, instead of their ISP strangling their downloads then make themselves look the good guy by providing all this wonderful content which you have to pay for.

I'm not exactly sure what the point is of having a game a few dollars cheaper than retail either. The only advantage is that you don't need to make a trip to the shop. Not exactly instaneous when you have to download it on strangled ADSL speeds. I'd rather spend a couple bucks more and have the physical original copy and be able to install it at any time, as many times as I want, not as many times some suit in Bigpond thinks is a fair number.

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Derek:

Don't forget you have to pay for electricity as well while you're downloading at "BP Broadband" lightning speed. How sad....hahahahahahaha

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Darth Vader:

Tel$tra - Customer retention and services = Total bollocks

Tiger promotion = only new suckers

Existing customers = constant new crap no-one wants. All they want is more competitve pricing without all the fancy pants rubbish!!

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Jason:

To some people who say it's unfair to discount only those with Bigpond Internet. It's fair. This is a way to say "Thank you for being with us". It's more of a gift. Another good point is that whatever you download anywhere on Bigpond sites don't count towards your usge. It's same as if your a member of some service regonized by a shop you visit, you get a discount. If you are not, then you pay the normal price. Same here on Bigpond.

To some people thinking Telstra is expensive. Wake up. Telstra is not expensive if you look properly with your own eyes and brains. I am only paying $35 for my 512/128 ADSL Unlimited. Never had any down times and has been reliable 100% of the time.

The games are just a start. They will add on more games. I believe Bigpond needs to get a licence from each game makers to have their games hosted and sold through the Game Shop.

A good start, Bigpond. I hope to see some good car racing games on there soon :). Only have one drawback:

Why are you only allowed Credit Card payments? Games seem to be aimed at people who is 10-30 years old. Most of those people wouldn't have a credit card. I'd like to see Direct Debt, game prices billed to Telstra bill.

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

Akash Mehta:

I still personally feel Telstra is expensive. I pay $40 a month for my Internode 512, and while I have a fairly low monthly data cap (8 gb I believe) I have never even used half of my monthly allowance, and anything over 8Gb is merely shaped. The reason? Totally free, unmetered content from Internode's game servers, file mirrors and majorgeek/3dgamers mirrors. Compare that with Telstra and you'll be pleasently surprised. And I couldn't much care for Bigpond's gaming network, as I do not regularly play anything besides UT2k4 which I have purchased from EB anyway.

29 February 2008, 8:28 PM (5 years ago)report abuse Send to a friend reply

GiovanniU (New user):

BigPond is an Australian Internet service provider and is a subsidiary of Telstra. BigPond is Australia's largest ISP, and as a subsidiary of Telstra, has a majority share of internet penetration in Australia, primarily due to Telstra owning most telephone exchanges. Based in Sydney, BigPond is now a nationwide company, providing access to internet services across the country. This would give much recreation for you! People rely on the internet. And when people have no internet, they lose access to a lot of the information they depend on – whether it is their work, their financial information, or an application for an online payday loan. Since so much of daily life now revolves around a computer, it seems like all life has come to a stop if you can't surf the web. This is the reason why so many of us shell out for better internet service, and wireless utilities. It's worth a payday loan to keep one's self from having "no internet".


20 April 2009, 7:19 PM (4 years ago)report abuse Send to a friend reply

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