Recent Post about the Skin Release/Sale Changes
Hi everyone! I recently read a heated argument between Summoner TheUnholySpork and Summoner Shosuko in the comments section on the post about the way new skins will go on sale now, and I took a few minutes and some of my business knowledge to put an answer together to (hopefully) settle the argument. I thought other people might be interested, so I'm copy pasting it here! You can find the whole argument in the comments section on this page: http://na.leagueoflegends.com/en/news/store/sales/were-changing-discounts
Enjoy!
"Um... both of you need to take a breath. I want to take a minute and remind both of you that you could play League of Legends for absolutely free and be at no kind of disadvantage. HOWEVER, Riot needs to make money at some point. Brace yourselves, business analysis incoming.
"Riot is a business, is very savvy, and knows their consumer base extremely well due to the amount of communication with their community. Therefore, they have recognized an opportunity where they could make more money. Knowing that a large percentage of the player population that does buy skins is very likely to buy them at release, they have changed their skin release/sale policy in order to make more money off these players. This is not taking advantage of these people, because, if they choose to buy the skin, they value the skin at the price it is worth. If they do not think that the skin is worth the amount of money it is priced at, however, Riot has given them a secondary chance/incentive to buy, with the skin going on sale a few months later. This gives people who want content the chance to have the content early, albeit for a higher price, yet still gives those who want a deal a chance at that. Riot's change in policy also gives this second kind of people, the deal searchers, a chance to obtain some of the more valuable skins in the game, Legendary and Ultimate skins.
"You both seem to have forgotten that, at its core, Riot is a business, and, even though Riot is a fabulous company with solid values, one of its goals is still to make money. With this new skin release/sale policy, Riot has found a way to easily appeal to both types of consumers that buy skins (those who want content immediately, and those who are willing to wait for a deal), and has found a way to potentially make more money in doing so. Similar to the way new champions are in the store for 7800 IP, owning new (skin) content now comes with a premium, and if you are unwilling to pay the premium, then you can wait to purchase the product until later, when it has "lost value."
"A few more points: @TheUnholySpork - comparing new skins to preorder incentives makes no sense. Not only are they completely different products, but you are also trying to compare two different companies with differing strategies who are also in slightly different markets.
"@Shosuko - while I agree with some of your arguments, especially the one that policies and ideas change over time, the way you've presented your argument is not one with reason but is rather meant to incite anger in your opponent. If you are going to make an argument, it should be done calmly, with many logical arguments and reasoning, in order to inspire a thoughtful and reasonable debate that both parties are able to enjoy as much as one can enjoy a disagreement (which, trust me, can be amusing, as long as both parties agree to be civil).
"Finally, if you do not have a business background, it is not your place to make an argument on what is wholly a business decision. I am not commenting on whether or not either of you do, but, if you do not, make sure you do your homework prior to spitting in another's face.
"So please, both of you: RELAX. It really isn't worth getting this worked up over a new business strategy of Riot's, which arguably puts them in a better position to make profits and is worked out with intention to please each type of buyer in the community.
"See you on Summoner's Rift!"
P.S. - Riot, I'll be anxiously awaiting my job offer from your business department.