The Business Rationale Behind Videogame Pre-Order Perks

Videogame production companies focus heavily upon pre-order sales as these provide the best path to generating revenue, income which is then re-invested to make even more profit. Production studios spend a lot of time and effort trying to come up with appealing pre-purchase packages because the quicker income is generated, the quicker it can be re-invested, but perhaps as important, pre-sales are sold at the full retail price point unlike delayed sales which are often sold at a discounted rate. Video game production companies spend an immense amount of time developing demonstrations for conventions (e.g. E3, Comic Con, Blizzcon etc.) because this is considered the best opportunity to attract gamers and have them purchase on the spot. These demonstrations are often over the top and include features which won’t be in the final version set for release (e.g. advanced graphical shading features), akin to a bait and switch technique in which the best face is presented with the actual product which is less polished actually being delivered. This deception is intentional as it helps generate revenue which helps fuel the production of future gaming titles and franchises