58 minutes ago, Mgard78 said:

Kinda makes you wonder now what their excuse will be for the high prices...

They won't see it like that... it must be priced right if they sold so many!

1 hour ago, Mgard78 said:

Kinda makes you wonder now what their excuse will be for the high prices...

If PMDG sold that many copies of the 737-700, maybe they should have raised the price higher than $69.99.  Aside from possibly requiring additional support staff, there really isn't a marginal cost to sell an additional unit of the 737-700 for PMDG. The total revenue graph for PMDG would look like this (the bottom graph that is a curved inverted parabola): 

The point for PMDG is to find the price that maximizes their total revenue.  If $69.99 was a point somewhere on the left half of the parabola, then PMDG actually could have raised prices even more, to maximize their total revenue. 

Edited September 12, 20223 yr by abrams_tank

1 hour ago, Mgard78 said:

Kinda makes you wonder now what their excuse will be for the high prices...

I think the quality is the excuse. I don't hear anyone arguing that the planes aren't any good.

15 minutes ago, jpe828 said:

They won't see it like that... it must be priced right if they sold so many!

Bingo. And they actually do now have an entry level offering now, which is new for them. I really like having the 700 and 800 and I'm curious to see where the Max will fall on the menu. I want it, but I'll wait and see. Not sure I could justify too much given I already own 2 737 variants. I've got limits, and I'm pretty darn happy overall with the Fenix completing my lineup. If they hadn't shown up, I might have gotten stuck without an Airbus again. 

I'm glad they're back on the up side, and I'm looking forward to trying something new like the 777 down the road.

The PMDG 737-700 (and the others as well i guess) is in my opinion a really, really good addon aircraft. I am more an Airbus guy (i fly the Fenix as well), but making the same flight with a Fenix and with a 737, its for me personally more fun with the 737 because it feels more like flying. The fenix feels like you are flying a spacecraft on rails. The fly-by-wife simulation somehow "decouples" me from the feeling for the aircraft.

Maybe this is the flybywire system at all, maybe its the flight model, i dont know. The only thing i am missing a little bit is the EFB in the 737 which is very comfortable.

I hope, PMDG continues to bring good aircraft, i also hope they will reach the current state-of-the-art with EFBs like other companies do.

Just on the downloads on fs.to, on the Transavia - 13'253 downloads = £927,710 ($1,079,627) and that's just the ones who wanted the Transavia livery, there will be plenty out there that are happy with liveries that came with it, so I would probably double those figures.

12 minutes ago, garlicbread11 said:

Just on the downloads on fs.to, on the Transavia - 13'253 downloads = £927,710 ($1,079,627) and that's just the ones who wanted the Transavia livery, there will be plenty out there that are happy with liveries that came with it, so I would probably double those figures.

Dont forget about VAT.

When I pay 70€ for the 737-800, 14€ is VAT and 56€ are for the retailer and the developer.

 

But I agree with you overall, PMDG still made a Million or two for sure...

Edited September 12, 20223 yr by Konterhalbe

I was happy at this news, although not surprised to say the least.

It is also my "go to" aircraft at the moment, not sure I flew it this much even in P3D, so much to say I will probably buy the 900 as well just for the sake of it.

It is stable and most of all trustworthy in the air and more importantly for me a great performer in VR, and like many others patiently waiting for this EFB which I am looking forward to.

The 777 & 747 are almost 100% sure of being a great sucess for PMDG also.

Good on them, Price a product right and to a good standard, there's your reward. I wonder how many devs that have gone for the bottom of the table in features and price are now starting to worry they got their predictions wrong. as it seems more and more new customers are actually going for the more complex aircraft.

4 hours ago, abrams_tank said:

The point for PMDG is to find the price that maximizes their total revenue.  If $69.99 was a point somewhere on the left half of the parabola, then PMDG actually could have raised prices even more, to maximize their total revenue. 

Right, but how do we (or they, for that matter) know that $69.99 isn't on the right half of the parabola?

Hard to prove a counterfactual (well, impossible actually!). But hopefully PMDG at least considers the possibility that they could have further increased their total revenue with a lower price.

4 hours ago, abrams_tank said:

If PMDG sold that many copies of the 737-700, maybe they should have raised the price higher than $69.99.  Aside from possibly requiring additional support staff, there really isn't a marginal cost to sell an additional unit of the 737-700 for PMDG. The total revenue graph for PMDG would look like this (the bottom graph that is a curved inverted parabola): 

The point for PMDG is to find the price that maximizes their total revenue.  If $69.99 was a point somewhere on the left half of the parabola, then PMDG actually could have raised prices even more, to maximize their total revenue. 

Right, so what a lack of vision selling their p3d stuff at $100+ eh..? Smh...

5 hours ago, jpe828 said:

They won't see it like that... it must be priced right if they sold so many!

I mainly meant the high(er) prices of their p3d offerings, some for almost double the current amount...

2 hours ago, garlicbread11 said:

Just on the downloads on fs.to, on the Transavia - 13'253 downloads = £927,710 ($1,079,627) and that's just the ones who wanted the Transavia livery, there will be plenty out there that are happy with liveries that came with it, so I would probably double those figures.

I don't think that they have maximized their revenue. I haven't bought a PMDG 737 (for msfs) yet (and not sure if I will because of the pricing model). But with that high price you excluse potential customers who were willing to pay or can only pay 50 USD (like Fenix) or 80-100 USD for a combination of two aircraft.

If they would have sold the product for 50 USD they would have needed 5200 customers more to get to the revenue that they have now (based on the example above). The interesting question is: Are there 5200 people outside who are willing or can afford only to pay 50 USD? Or are there even more people? Based on the varity on MSFS customers (over a million I guess, don't know the numbers) I would assume that there are still potential customers. So if they would sell their product to additional 5200 People on a price tag of 50 USD they would have even exceeded their revenue of 910000 USD. Of course these numbers are just figurative. PMDG certainly made their calculations and obviously came to the conclusion that there are no more willing customers paying...

They argued that the new pricing model will be more fair, because people will only get the aircraft model they want, but this is not true since they put the BBJ etc into the package and are of course charging for it. So it's basically the same as before only with the exclusion that you don't have to decide of you want to buy 737-8, 737-8BBJ, 737,8Cargo etc you just pay it even if you don't want them.

I am wondering about a question regarding P3D pricing (since it came up above): They always said (other devs included) they have to charge more for P3D because of licensing): who got the extra money? The developers or did Lockheed Martin charge the devs extra money so they can offer their products on the P3D plattform?

 Anyway this has been discussed a lot, I am happy for them (even though I think they have shot on their own knee, since with a different approach they would have not only more customers but probably even more happy customers).

9 minutes ago, 737_800 said:

I don't think that they have maximized their revenue. I haven't bought a PMDG 737 (for msfs) yet (and not sure if I will because of the pricing model). But with that high price you excluse potential customers who were willing to pay or can only pay 50 USD (like Fenix) or 80-100 USD for a combination of two aircraft.

If they would have sold the product for 50 USD they would have needed 5200 customers more to get to the revenue that they have now (based on the example above). The interesting question is: Are there 5200 people outside who are willing or can afford only to pay 50 USD? Or are there even more people? Based on the varity on MSFS customers (over a million I guess, don't know the numbers) I would assume that there are still potential customers. So if they would sell their product to additional 5200 People on a price tag of 50 USD they would have even exceeded their revenue of 910000 USD. Of course these numbers are just figurative. PMDG certainly made their calculations and obviously came to the conclusion that there are no more willing customers paying...

They argued that the new pricing model will be more fair, because people will only get the aircraft model they want, but this is not true since they put the BBJ etc into the package and are of course charging for it. So it's basically the same as before only with the exclusion that you don't have to decide of you want to buy 737-8, 737-8BBJ, 737,8Cargo etc you just pay it even if you don't want them.

I am wondering about a question regarding P3D pricing (since it came up above): They always said (other devs included) they have to charge more for P3D because of licensing): who got the extra money? The developers or did Lockheed Martin charge the devs extra money so they can offer their products on the P3D plattform?

 Anyway this has been discussed a lot, I am happy for them (even though I think they have shot on their own knee, since with a different approach they would have not only more customers but probably even more happy customers).

https://pmdg.com/pmdg-737-600-for-microsoft-flight-simulator/ 

Probably the cheapest PMDG ever on the market an at only $35 makes it also cheaper than those stated. All functionality of the other NG's in the series but at a very reasonable cost. 

Edited September 12, 20223 yr by garlicbread11

8 minutes ago, garlicbread11 said:

https://pmdg.com/pmdg-737-600-for-microsoft-flight-simulator/ 

Probably the cheapest PMDG ever on the market an at only $35 makes it also cheaper than those stated. All functionality of the other NG's in the series.

Who flies the -600 except few airlines? That's the reason why it's so cheap. Anyway I am not going into a discussion again, I wish PMDG all the best and good revenues, I just hope they will consider some other variables into their pricing model in the future so they can get even more revenue.

21 minutes ago, 737_800 said:

If they would have sold the product for 50 USD they would have needed 5200 customers more to get to the revenue that they have now (based on the example above). The interesting question is: Are there 5200 people outside who are willing or can afford only to pay 50 USD? Or are there even more people?

FYi, the 737-700 did sell at $52.50 USD during PMDG's 25th anniversary celebration, about a month ago.