"Where does he get those wonderful toys?," The Joker once asked about Batman.
Do game companies see collector's editions as a profitable product, or as a marketing/PR technique, or both? "Game companies definitely see collector editions and collectable items as both an incredible marketing PR tool and as a revenue generator," Buller replied. "The idea of exclusivity really creates hype and excitement for their games, as well as promoting and rewarding brand loyalty." Besides collector's editions, why else do game companies create special items based on their games? "Gaming companies come to us to create awesome swag because it truly is a part of the gaming world. There's something about us gamers that love swag," said Buller. "When I visit my gaming clients I see it on everyone's desk, in their cube, they're wearing it - hats, shirts, hoodies, backpacks, shorts, socks, flip flops and probably, if you looked, their underwear."
When items are only available in limited editions, it can, in Buller's words, "create an insane secondary market on eBay." That may not take long to happen. "I've seen swag that our client gave away at Comic-Con being sold for $300 on eBay that day," Buller noted. That has led to fans chasing down items just for the collectible value. "We know there is a growing trend for gaming fans to attend events with the intention to acquire as much free swag and exclusive retail merchandise as possible and then sell it on eBay and to their friends. I've managed retail merchandise booths at events for our gaming clients where individuals will commonly buy over $2000 of exclusive merchandise for just that reason. The demand is really that high."
That demand can, in turn, affect the production of items. "I've seen the value of items going on eBay directly affect production quantities of many items we've produced for our clients," Buller said. "If our clients see a high selling price on eBay for their swag they definitely ramp up production for their next events."
“Collector's Editions have always been an important part of game sales and an important part for packaged goods across all media,” said analyst Jesse Divnich of EEDAR. “Their percentage of sales can range from 5% to 15% of unit sales. They tend to range higher on niche titles with a large fan base and lower for mainstream titles that reach a broader audience.”
Divnich doesn't see a problem with the higher prices on collector's editions. “The margins on special editions are much higher, but that doesn't come at the cost of gouging the consumer, it comes at the benefit,” said Divnich. “It may cost a publisher $2 to make an action figure, and they may sell it at a $10 premium, but to the consumer buying it, they view it as well worth the money. There will always be a market for those few that want a little extra with their game. This market will never disappear.”
Source: GamesIndustry International
