Understanding the pricing and minimums of the Rex pack: whales, dolphins and market segmentation

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So a lot of people are unhappy with the pricing and the $200 availability minimum on the Rex pack. This is understandable, nobody wants to be locked out from anything. But some folks are simply writing this off as greed, as them not caring about low spenders, etc. They are completely missing the point, and since I do have some business experience (and a degree in it as well) I figured I'll try to explain what is happening here for those who want to take a break from ranting for some reading.
Disclaimer: I probably won't buy any of these packs.
Market Segmentation
We have all discussed the terms "whale", "dolphin", "P2P", "F2P" etc. These refer to different ways that the market for the game is segmented based on purchasing patterns and tendencies. There are also other types of market segmentation, such as geography (where you live), platform (Apple vs. Google) etc. but the most important one is that based on spending.
The Rex pack is actually a brilliant bit of marketing once you understand what it is designed for. It is directly targeted at one market segment, and indirectly targets a second segment as well.
Primary Target: Established Whales Who Have Bought Many Chromiums
This pack is designed to appeal to those who have bought so many chromium packs that diminishing returns make buying more to get a single character cost-prohibitive.
It's one thing to spend $3,000 on chromiums to start the game when you have almost nothing and you know that even if you don't like everything you get, you will unlock a lot of characters and some are certain to be ones you will be pleased with. But if you've already done this, as many whales have, you're faced with the prospect of spending thousands of dollars on chromiums just to try to get one character, spending that will yield 99% shards and characters you already have and don't need. That is a bad deal, so most whales refused to try to get Rex.
This pack allows people who do not need shards for other characters but want Rex to "focus-fire" on Rex and get him for a reasonable cost (for a whale).
Secondary Target: Risk-Averse Dolphins Who Don't Buy Chromiums
There are many people in the game who spend money but do not use it on chromium packs. The two main reasons are because they (correctly) feel that buying chromiums is a waste if you don't buy a lot of them, or because they dislike the randomness factor (or both). This pack gives these people an option to get a new character that otherwise could only be obtained via chrome packs, without having to do the whole "roulette wheel" thing they hate. Yes there's some randomness, but basically if you put $100 into crystals and buy 20 of these packs, you are very likely to get a usable Rex out of it. As opposed to possibly thousands of dollars to get him the other way.
Why the $200 Minimum?
The minimum is there because of the groups being targeted, who are all people who have likely spent more than that anyway.
Why not let F2Pers and low spenders buy it? Because it devalues Rex as a premium character. Remember that this is the only chromium-exclusive character that has been added to the game since launch, and he just came out. Making him available for 5 bucks to non-spenders would immediately mean there was again no new chromium-exclusive. (Arguably, this is still true anyway. I can get Rex now if I want, and I've never bought a chrome pack. But it would be worse if anyone could just get him for a fiver.)
Who Should be Upset?
IMO, the only group with a right to be unhappy are whales who spent a fortune on chromium packs after Rex was announced, only to now find they could have gotten him for far less. They did get shards to work towards GG I guess, but that's a LOT of money.
F2Pers who are upset were, I think, making unwarranted assumptions about how this thing would work.
What About F2P and Low Spenders?
IMO, CG/EA still needs to put out a low-cost pack to appeal to low spenders and entice F2Pers to spend a little on the game. This is not that pack. We are still waiting and I hope it comes soon.
Quit 7/14/16. Best of luck to all of you.

Replies

  • Plasmaj
    297 posts Member
    edited February 2016
    Options
    Yes, as a mostly f2p, I see no reason for me to be upset. For people who have been unwilling to spend $200 or more on this game, I don't understand why they would want to buy this pack. We don't know the odds of getting a full character. How many packs would they need to buy to make him viable? Would they be happy if they just unlocked him at 4 stars without being able to star him up? Or would they keep buying this pack until he was 7 stars, in which case they may have to spend $200 anyway.
  • Options
    Very nice post. Thanks OP!
  • Options
    Qeltar wrote: »
    ...
    What About F2P and Low Spenders?
    IMO, CG/EA still needs to put out a low-cost pack to appeal to low spenders and entice F2Pers to spend a little on the game. This is not that pack. We are still waiting and I hope it comes soon.

    +1

    I'd like to add as an f2p player who's played since December, I'd certainly spend something on this game, they just haven't reached out to my market segment yet.
  • Options
    Very well said thank you
  • Options
    Sometimes I wonder if games like these are just part of a collaboration between an economics phd student and some cs undergrads. "Price Discrimination in Star Wars Galaxy of Heroes: an analysis of market segmentation and pricing in online gaming" etc etc
  • Options
    My 1 and only issue with the pack is the ability materials, not the shards or the credits. Make a similar pack for low spenders with either a trash toons shards (Asaji for example) or even no shards at all and I'd still happily pay $5 for it.
  • Options
    Very well written post. Probably lost on most I see post on here, but it is a sound business plan in my mind. People fail to realize this game is only three months old, trends, strategy is still developing.
  • Options
    Agreed. Slightly different tune from your initial posts on this in the other thread (or maybe I misunderstood you) but this one is spot on.

    I also agree that a new f2p pack should exist. I think it should include 1 purple ability mat, but I have no idea how to handle the shards/characters. On one end, you don't want to start giving people f2p'ers easy ways to get 7*'s. Why would they ever buy chromium's if they can just wait for these packs? But it would also be a kick in the junk to offer only shards up to the point of say.. a 5*. Because everyone wants to move their characters above that at some point.

    Anyway, hopefully this is a start of something good. Thanks for the post!
  • Stevespear426
    436 posts Member
    edited February 2016
    Options
    Nail on the head. I'm going to pass on Rex because he doesn't just doesn't interest me. However if they rotate the right characters in. I'll be buying them for sure.
  • Options
    If you can't afford 200 dollars, you have bigger problems in life. I don't mean that as a knock. I mean that as in how did you get yourself in this financial situation and how can you improve it so you can enjoy the finer things (SWGOH!) in life.
  • DeNiro
    48 posts Member
    edited February 2016
    Options
    This is not a game anymore, it's a gambling machine, they crossed the line one more time.
    200$ as a minimum, just for one character (a premium character) in a mobile game who doesn't have a real multiplayer, deep content, and... a chat! It's tremendous, it's unreal .
    I can't imagine people spending a lot of money into this gam... gambling machine!


    Star Wars: Casino of Heroes
    By EA
    English mistakes will appear very regularly in my sentences!
  • Options
    The reason F2P and tuna are probably angry (I'm not) is that there are still no packs available for them to buy.

    People want affordable packs with decent heroes in them, lately that hasn't been happening.

    Personally, I couldn't care less. I won't be spending more money until changes are made for the better.
    My name is cosmicturtle333, aka CT-333, aka Threes.
  • Options
    DeNiro wrote: »
    This is not a game anymore, it's a gambling machine, they crossed the line one more time.
    200$ as a minimum, just for one character (a premium character) in a mobile game who doesn't have a real multiplayer, deep content, and... a chat! It's tremendous, it's unreal .

    Don't buy it then. I think they should offer as many packs as they want. It's their game and let the user base decided if it's good or not.
  • Options
    How does letting everyone buy these packs keep whales from buying them? You're talking "risk averse spenders"...but this is the kind of pack those players want and have been waiting for. It offers the specific content they want, not a random chance of dozens of other possibilities. But they can't buy it...because?
  • Options
    Plasmaj wrote: »
    Yes, as a mostly f2p, I see no reason for me to be upset. For people who have been unwilling to spend $200 or more on this game, I don't understand why they would want to buy this pack. We don't know the odds of getting a full character. How many packs would they need to buy to make him viable? Would they be happy if they just unlocked him at 4 stars without being able to star him up? Or would they keep buying this pack until he was 7 stars, in which case they may have to spend $200 anyway.

    OP is totally right, so are you my friend. Your thoughts are exactly what were mine when I saw people whining they couldn't see the pack because they had spent less than 200$. Best explanation is : they whine because they can, and they found a new pretext to do.

    As a near F2P who cannot see the aurodium in the shop, I applaud this pack which seems well designed for the two segments OP pointed out. And believe it or not, we really need that the whales keep spending to fund this game.
  • Options
    The reason many people are snubbed is because what I imagine the larger market to be in general, the F2P/Dolphins, are made acutely aware of how under-valued they are by brazenly being shown the limits to their appreciation. If two different packs had been offered, one for spenders under $200 as an 'incentive pack', as well as this Rex pack, everyone would be copacetic.
  • Options
    If you can't afford 200 dollars, you have bigger problems in life. I don't mean that as a knock. I mean that as in how did you get yourself in this financial situation and how can you improve it so you can enjoy the finer things (SWGOH!) in life.

    This is such an unbelievably arrogant, condescending comment it makes me want to hurl.
  • Options
    Barrok wrote: »
    DeNiro wrote: »
    This is not a game anymore, it's a gambling machine, they crossed the line one more time.
    200$ as a minimum, just for one character (a premium character) in a mobile game who doesn't have a real multiplayer, deep content, and... a chat! It's tremendous, it's unreal .

    Don't buy it then. I think they should offer as many packs as they want. It's their game and let the user base decided if it's good or not.

    This is not the point, I'm just scared.
    This can be the future of games industry and it's beggining in this mobile game... a Star Wars mobile game, step by step.
    They are not including low spenders, making low cost packs and things like that, since his launch.
    English mistakes will appear very regularly in my sentences!
  • Telaan
    3454 posts Member
    edited February 2016
    Options
    DarthCyren wrote: »
    The reason many people are snubbed is because what I imagine the larger market to be in general, the F2P/Dolphins, are made acutely aware of how under-valued they are by brazenly being shown the limits to their appreciation. If two different packs had been offered, one for spenders under $200 as an 'incentive pack', as well as this Rex pack, everyone would be copacetic.

    If you haven't even spent $200 you're not a dolphin. I'm a dolphin and very happy to see this pack. I have no intention of buying simply because I have no desire to get Rex, Fives, or pLOL Koon. But should a toon roll around in the future that I do want, I'd happily pump money into it.
  • Options
    DeNiro wrote: »
    Barrok wrote: »
    DeNiro wrote: »
    This is not a game anymore, it's a gambling machine, they crossed the line one more time.
    200$ as a minimum, just for one character (a premium character) in a mobile game who doesn't have a real multiplayer, deep content, and... a chat! It's tremendous, it's unreal .

    Don't buy it then. I think they should offer as many packs as they want. It's their game and let the user base decided if it's good or not.

    This is not the point, I'm just scared.
    This can be the future of games industry and it's beggining in this mobile game... a Star Wars mobile game, step by step.
    They are not including low spenders, making low cost packs and things like that, since his launch.

    Don't take this the wrong way (not trying to be rude) but this has been happening in mobile games FOREVER. This is how they survive. They have to sell you stupid crap to make you feel you need it so you spend money. You got "season passes" in desktop games, and these ludicrous gambling-style "packs" to get your characters in mobile games. I don't see this going anywhere (which is frustrating), so you kind of have to either go F2P and play a handful of games, or you pick 1 game and spend more than you should :P
  • Options
    Lol people will complain about anything. People these days feel they are entitled. It's not enough that you can play a great game for FREE. But people feel the need to complain about absolutely everything.
  • Qeltar
    4326 posts Member
    edited February 2016
    Options
    If you can't afford 200 dollars, you have bigger problems in life. I don't mean that as a knock. I mean that as in how did you get yourself in this financial situation and how can you improve it so you can enjoy the finer things (SWGOH!) in life.
    Many people can enjoy the finer things in life because they don't spend $200 on one character in a videogame. Do you know how many people who are heavily in debt still spend a fortune on games like these? Do you realize that spending a fortune on characters in a phone game can itself be a sign of "bigger problems in life"?
    I could buy 1,000 chromium packs right now if I wanted to. I don't want to. I'd rather do almost anything else with that money, including donating it to charity.
    Careful where you throw those stones.
    DarthCyren wrote: »
    The reason many people are snubbed is because what I imagine the larger market to be in general, the F2P/Dolphins, are made acutely aware of how under-valued they are by brazenly being shown the limits to their appreciation. If two different packs had been offered, one for spenders under $200 as an 'incentive pack', as well as this Rex pack, everyone would be copacetic.
    This would have been a great idea. Maybe it could have had Royal Guard shards in it or something.
    I've been urging CG for a long time to make something for low spenders, but unfortunately I have no more control over what they do than any of you.
    Barrok wrote: »
    Don't take this the wrong way (not trying to be rude) but this has been happening in mobile games FOREVER. This is how they survive.

    This is not about survival: many games survive just fine charging a fraction of what SWGOH does.
    This is about getting very, very rich. But they're quite happy to have people confuse the two.
    Quit 7/14/16. Best of luck to all of you.
  • Options
    Whales won't be upset because they are whales, they have a lot of money remember?
    They don't whine about price, they whine about lack of content, bugs, etc.
    Ally Code: 859-197-534
  • Options
    How does letting everyone buy these packs keep whales from buying them? You're talking "risk averse spenders"...but this is the kind of pack those players want and have been waiting for. It offers the specific content they want, not a random chance of dozens of other possibilities. But they can't buy it...because?
    In no way keep whales from buying them. But it incentivize dolphins who are close to that amount, or doubting if they should spend that amount, to actually cross the line and spend it.
  • Options
    To be fair, there are a lot of single purchase games available too. We've never before been so immersed in games and had them so readily available, right at the tips of our fingers.

    The bottom line is supply and demand. Ask for (and pay for) good single purchase games, and they'll start making them. Well something like that. I know it's not quite THAT easy.
  • Options
    Qeltar wrote: »
    So a lot of people are unhappy with the pricing and the $200 availability minimum on the Rex pack. This is understandable, nobody wants to be locked out from anything. But some folks are simply writing this off as greed, as them not caring about low spenders, etc. They are completely missing the point, and since I do have some business experience (and a degree in it as well) I figured I'll try to explain what is happening here for those who want to take a break from ranting for some reading.
    Disclaimer: I probably won't buy any of these packs.
    Market Segmentation
    We have all discussed the terms "whale", "dolphin", "P2P", "F2P" etc. These refer to different ways that the market for the game is segmented based on purchasing patterns and tendencies. There are also other types of market segmentation, such as geography (where you live), platform (Apple vs. Google) etc. but the most important one is that based on spending.
    The Rex pack is actually a brilliant bit of marketing once you understand what it is designed for. It is directly targeted at one market segment, and indirectly targets a second segment as well.
    Primary Target: Established Whales Who Have Bought Many Chromiums
    This pack is designed to appeal to those who have bought so many chromium packs that diminishing returns make buying more to get a single character cost-prohibitive.
    It's one thing to spend $3,000 on chromiums to start the game when you have almost nothing and you know that even if you don't like everything you get, you will unlock a lot of characters and some are certain to be ones you will be pleased with. But if you've already done this, as many whales have, you're faced with the prospect of spending thousands of dollars on chromiums just to try to get one character, spending that will yield 99% shards and characters you already have and don't need. That is a bad deal, so most whales refused to try to get Rex.
    This pack allows people who do not need shards for other characters but want Rex to "focus-fire" on Rex and get him for a reasonable cost (for a whale).
    Secondary Target: Risk-Averse Dolphins Who Don't Buy Chromiums
    There are many people in the game who spend money but do not use it on chromium packs. The two main reasons are because they (correctly) feel that buying chromiums is a waste if you don't buy a lot of them, or because they dislike the randomness factor (or both). This pack gives these people an option to get a new character that otherwise could only be obtained via chrome packs, without having to do the whole "roulette wheel" thing they hate. Yes there's some randomness, but basically if you put $100 into crystals and buy 20 of these packs, you are very likely to get a usable Rex out of it. As opposed to possibly thousands of dollars to get him the other way.
    Why the $200 Minimum?
    The minimum is there because of the groups being targeted, who are all people who have likely spent more than that anyway.
    Why not let F2Pers and low spenders buy it? Because it devalues Rex as a premium character. Remember that this is the only chromium-exclusive character that has been added to the game since launch, and he just came out. Making him available for 5 bucks to non-spenders would immediately mean there was again no new chromium-exclusive. (Arguably, this is still true anyway. I can get Rex now if I want, and I've never bought a chrome pack. But it would be worse if anyone could just get him for a fiver.)
    Who Should be Upset?
    IMO, the only group with a right to be unhappy are whales who spent a fortune on chromium packs after Rex was announced, only to now find they could have gotten him for far less. They did get shards to work towards GG I guess, but that's a LOT of money.
    F2Pers who are upset were, I think, making unwarranted assumptions about how this thing would work.
    What About F2P and Low Spenders?
    IMO, CG/EA still needs to put out a low-cost pack to appeal to low spenders and entice F2Pers to spend a little on the game. This is not that pack. We are still waiting and I hope it comes soon.

    I have spent $405 on this game, not all at once but combined since last November. Yet I have no option to buy the Rex pack for $5 just an option to buy for 750 crystals.
  • DeNiro
    48 posts Member
    edited February 2016
    Options
    Barrok wrote: »
    DeNiro wrote: »
    Barrok wrote: »
    DeNiro wrote: »
    This is not a game anymore, it's a gambling machine, they crossed the line one more time.
    200$ as a minimum, just for one character (a premium character) in a mobile game who doesn't have a real multiplayer, deep content, and... a chat! It's tremendous, it's unreal .

    Don't buy it then. I think they should offer as many packs as they want. It's their game and let the user base decided if it's good or not.

    This is not the point, I'm just scared.
    This can be the future of games industry and it's beggining in this mobile game... a Star Wars mobile game, step by step.
    They are not including low spenders, making low cost packs and things like that, since his launch.

    Don't take this the wrong way (not trying to be rude) but this has been happening in mobile games FOREVER. This is how they survive. They have to sell you stupid crap to make you feel you need it so you spend money. You got "season passes" in desktop games, and these ludicrous gambling-style "packs" to get your characters in mobile games. I don't see this going anywhere (which is frustrating), so you kind of have to either go F2P and play a handful of games, or you pick 1 game and spend more than you should :P

    Yes, I agree with you but in all mobile games that I've played I never saw huge prices like in this game.
    Season passes in desktop games don't cost more than 50$, I'm tottaly sure. Even in F2P games, with 100$ you will be a god in the game, definitely.
    "...you pick 1 game and spend more than you should" Yes, that happend with me in SWTOR, I spent more, a lot more than I should - -'
    English mistakes will appear very regularly in my sentences!
  • Fher
    188 posts Member
    Options
    So the reason I bought a bunch of chromiums was in hopes to get 7* Aayla or Ima-Gun Di for Yoda event. Coincidentally Rex was also available and I gathered enough shards to 5* Rex, then today I open 15 packs, I get 30 purple materials, which is super awesome, and enough shards to 7* Rex.

    No I'm not mad they did that. I consider myself a minor whale. If I was a mega whale it wouldn't make a difference if they added this pack after it first came out. I don't think Rex was a priority for any whales, considering there are not 5 clones to even consider making a clone squad.
  • Telaan
    3454 posts Member
    Options
    DeNiro wrote: »
    Barrok wrote: »
    DeNiro wrote: »
    Barrok wrote: »
    DeNiro wrote: »
    This is not a game anymore, it's a gambling machine, they crossed the line one more time.
    200$ as a minimum, just for one character (a premium character) in a mobile game who doesn't have a real multiplayer, deep content, and... a chat! It's tremendous, it's unreal .

    Don't buy it then. I think they should offer as many packs as they want. It's their game and let the user base decided if it's good or not.

    This is not the point, I'm just scared.
    This can be the future of games industry and it's beggining in this mobile game... a Star Wars mobile game, step by step.
    They are not including low spenders, making low cost packs and things like that, since his launch.

    Don't take this the wrong way (not trying to be rude) but this has been happening in mobile games FOREVER. This is how they survive. They have to sell you stupid crap to make you feel you need it so you spend money. You got "season passes" in desktop games, and these ludicrous gambling-style "packs" to get your characters in mobile games. I don't see this going anywhere (which is frustrating), so you kind of have to either go F2P and play a handful of games, or you pick 1 game and spend more than you should :P

    Yes, I agree with you but in all mobile games that I've played I never saw huge prices like in this game.
    Season passes in desktop games don't cost more than 50$, I'm tottaly sure. Even in F2P games, with 100$ you will be a god in the game, definitely.
    "...you pick 1 game and spend more than you should" Yes, that happend with me in SWTOR, I spent more, a lot more than I should - -'

    SWtOR is a significantly worse game than this one. It's not relevant to this discussion but I'm always willing to take a shot at that game.
  • DeNiro
    48 posts Member
    edited February 2016
    Options
    Telaan wrote: »
    DeNiro wrote: »
    Barrok wrote: »
    DeNiro wrote: »
    Barrok wrote: »
    DeNiro wrote: »
    This is not a game anymore, it's a gambling machine, they crossed the line one more time.
    200$ as a minimum, just for one character (a premium character) in a mobile game who doesn't have a real multiplayer, deep content, and... a chat! It's tremendous, it's unreal .

    Don't buy it then. I think they should offer as many packs as they want. It's their game and let the user base decided if it's good or not.

    This is not the point, I'm just scared.
    This can be the future of games industry and it's beggining in this mobile game... a Star Wars mobile game, step by step.
    They are not including low spenders, making low cost packs and things like that, since his launch.

    Don't take this the wrong way (not trying to be rude) but this has been happening in mobile games FOREVER. This is how they survive. They have to sell you stupid crap to make you feel you need it so you spend money. You got "season passes" in desktop games, and these ludicrous gambling-style "packs" to get your characters in mobile games. I don't see this going anywhere (which is frustrating), so you kind of have to either go F2P and play a handful of games, or you pick 1 game and spend more than you should :P

    Yes, I agree with you but in all mobile games that I've played I never saw huge prices like in this game.
    Season passes in desktop games don't cost more than 50$, I'm tottaly sure. Even in F2P games, with 100$ you will be a god in the game, definitely.
    "...you pick 1 game and spend more than you should" Yes, that happend with me in SWTOR, I spent more, a lot more than I should - -'

    SWtOR is a significantly worse game than this one. It's not relevant to this discussion but I'm always willing to take a shot at that game.


    SWTOR?? The best 2011 MMORPG online game? And the best (behind Battlefront) StarWars online game ever made?
    Ok, you're being sarcastic...
    I hope so
    English mistakes will appear very regularly in my sentences!
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