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The Difference Between “Shipped” And “Sold” Is Less Relevant Than You Think

It's pretty common to see arguments and articles in which the point of conflict is whether sales data of a certain game indicate actual sales or shippings.
The difference is actually less relevant than many think.

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ATi_Elite3081d ago (Edited 3081d ago )

Shipped = shipped to stores like Worse-Buy, Target, Game Stop, etc

sold = actual sales to consumers like you and me!

Now for the business aspect of all this....
Shipped = Publisher has now already gotten paid for every game shipped (The store has to buy the game then turn around and sell it for a profit). So those Pre-order numbers are very important to a Publisher cause it can drive a store to buy more copies thus making the Publisher more cash Day 1.

Sold = when the game sales out BAM! order more from the Publisher..Cha-ching! The Store is making money and the Publisher is making money cause obviously the product is good and the public wants it so keep it on the selves.

Unfortunately you have games that have huge shipped numbers but no one wants them so then the Store winds up discounting them and selling them for what ever they paid for them $30 $25 (breaking even) or even worse $10 (taking a loss) just to get rid of them.

So this is why you have so few new i.P.s but fifty million sequels of the same game cause Store Execs who order games do not know a good game from a bad game they only recognize game titles that have sold well.

Hence that's why "SOME" exclusive PC titles go to the consoles cause they Do well on the PC (where Store execs are not needed) but a demand and name recognition is created thus this falls in line with the business model of console/retail sales and Battlefield 3 would be the perfect example of this.

CaptainMarvelQ83081d ago (Edited 3081d ago )

Bubbles+
Thanks for summarizing.That means that the money is already in their hands,from what i understand;when a game 'flops' it means that the publisher has possibly already gotten it's revenue through shipping the game,but they don't make a sequel because not many people bought it=Store didn't get the money=the store won't buy the next sequel because they don't trust they would be able to sell it to people.

that's what i got,correct me if im wrong

KwietStorm3081d ago

Just one question. Why worse-buy?

ATi_Elite3081d ago (Edited 3081d ago )

@ CaptainMarvelQ8

Yep that's pretty much it. and it can slightly be the reason for Heavenly Sword not having a sequel by now. The game was great but sat on selves collecting dust for a while CAUSE the PS3 was $600

@KwietStorm

"Worse Buy"
I just do not like that store and the people that work there know ZERO! I'm a PC Geek and I'm shocked as to how little the "Worse Buy" employees know about the products they sale. I seriously think they hire people on there looks instead of brains their brains. Also they are ripping people off buy charging them $100 to remove bloatware from new PC's! That's Bullshite and really taking advantage of computer illiterate consumers!

This video is so true of Worse Buy!

gamingdroid3081d ago (Edited 3081d ago )

I got a best buy at worse buy the other day, as I picked up Borderlands GOTY for a mere $10 new!

I find walking into GameStop far worse, usually there is a kid that looks like he works at walmart with an attitude, the store smells like someones dirty @ss basement, gutted games are considered new, I get pestered with pre-orders/trade-in and the prices are high!

I will choose Best Buy any day over GameStop, but prefer Target, Walmart, Costco and so on any day.

f7897903081d ago

Heavenly sword could have sold more copies if they would have dropped the price. I never saw it in stores for less than $60. Annoying.

I need to go on ebay and buy it.

tiffac3080d ago

+1 Bubble vote for you sir ATi your explanation is truly Elite. Too bad fanboys will never understand it like what the article is trying to explain.

tarbis3080d ago

+1 for you sir for taking your precious time to even explain something that is self-explanatory.

+ Show (1) more replyLast reply 3080d ago
bozebo3081d ago

Or they could use digital distribution.

fluffydelusions3081d ago

They tried that with PSP go. Didn't work so well.

CaptainMarvelQ83081d ago (Edited 3081d ago )

Steam did

Abriael3081d ago

@captainMarvelQ8 but Valve doesn't sell *only* on steam

radphil3081d ago (Edited 3081d ago )

@CaptainMarvelQ8

They also sell a HUGE variety of games, including from their competitors, and have constant deals.

SuperLupe3081d ago (Edited 3081d ago )

It was only a excuse started by a certain camp who were boggled that the outside world buys as many 360's as PS3's.

Any normal person knows that it doesnt matter whether that be for hardware or software.

kneon3081d ago

It's a very lame argument comparing shipped to sold in most cases. Usually the products in question are only going to sit on the shelf for days or weeks, retailers don't normally sit on months of consoles for example.

So you can think of shipped units as a reasonable prediction of sold units in a few weeks.

Pedobear Rocks3081d ago (Edited 3081d ago )

You do know that MS spent the first year of Xbox 360's life channel stuffing so that they could pronounce sales to try and put distance between them selves and Sony before the PS3 launch right? Go back and look at year two shipped for Xbox...they barely shipped anything for 9mos as they had channel stuffed so hard the year before and investors caught them out.

http://www.google.com/searc...

http://informationarbitrage...

kneon3081d ago

Yes I'm aware of Microsoft's channel stuffing history, and they've done it with more than just Xboxes, but that's what it is, history. It's not happening anymore.

But even if you do stuff the sales channels it will all even out later, you can't keep doing it forever.

insomnium23081d ago

LOL that was a blast from the past pedobear. You rock!

tiffac3080d ago

Good article too bad fanboys will never try to understand it. lol!