Kotaku
Well, well, well, what have we here? Reader Scott stumbled upong an interesting and official Q&A about Burger King's Xbox Video Game Collection. The thing looks to be directed at Burger King employees and is chock full of msoft misinformation, backhanded insults directed at the PS3 and some interesting mark-up figures. There's also a tidbit in there about BK putting DDR toys in their kids meals.
According to the Q&A, Microsoft will develop three games for Burger King. The games will sell for $3.99 with the purchase of a value meal. Don't get too excited about these branded games, according to the Q&A they will be "delivered in Xbox and Xbox 360 compativle formats on one disc." I'm not sure if this means it's one game that plays on both systems or they managed to cram two small games on one disc.
Even more interesting, at least to me, is that BK will also be running a Dance Dance Revolution promotion at the same time. It sounds like there will be toys of some sort, which just kicks ass. The DDR stuff will be hitting on Dec. 4 and run through the end of the year. It's unclear when the games hit, though the first official documents are suppose to hit store managers this week.
Hit the jump for some HI-larious excerpts from the Q&A. I love the bit about how all consoles to the 360 and that Msoft expects to sell 22.1 million consoles by the end of the year.
Hmm, I wonder if we're going to get another cease and desist?
Why are we selling video games?
BK
Xbox
Video Games have a strong and long-lasting branding effect for BURGER KING
. Customers playing the game interact deeply with the BK
brand and its key icons and discuss the game with friends, colleagues and family. This represents an enormous "advertising value" for BK
in terms of consumer impressions - never before achieved with any SLO in our category.
Why is Microsoft's Xbox
the right partner?
The Xbox 360
is the hottest gaming platform, delivering next generation graphics and game-play unmatched by any competing console.
Microsoft estimates a household penetration rate of 22.1 million (consoles) in the U.S. by Holiday 2006.
BK
Video Games are endorsed and developed by Microsoft's Xbox
, providing instant consumer credibility and authenticity to our collection.
What about other game consoles?
Other game consoles have not been updated in five years.
The current Sony Play Station 2 has been on the market since October, 2000 and is technologically inferior to the Xbox
.
Sony's next generation Play Station 3 had originally been scheduled to launch in spring 2006, but analysts estimate that due to supply issues, the launch will be delayed to fourth quarter of 2006 or even as late as spring 2007. (Source: www.gamespot.com). With a fourth quarter '06 release, penetration of the Play Station 3 platform would be insufficient to support our BK
Video Game proposition.
What is the expected franchisee mark-up per game sold to consumers?
The program delivers approximately $1.00 mark-up per unit sold to BK
franchisees (based on the delivered to Restaurant price) at the 6.8 million unit system quantity when sold at the recommended retail price of $3.99 (subject to Show of Support vote). If the minimum system order of 6.8 million units is not obtained the expected markup could be less than $1.00 (based on the delivered to Restaurant price).
When will franchisees break even?
Franchisees may break even when approximately 73% of their video game stock is sold.
What is the recommended order quantity?
Burger King Corporation forecasts sales for this program at a minimum of approximately 900 units for the promotion (5 weeks) or a minimum of 180 units per week, per restaurant. If your experience leads you to believe that you will sell a minimum average of 180 BK
Xbox
Video Games SLOs per week, per restaurant, then you should follow this recommendation.
What is the recommended price to consumer?
The recommended consumer price is $3.99 with the purchase of a Value Meal, including a 20-25% franchisee mark-up. This price point has been validated by BKC's consumer research and is pending the Show of Support results for this promotion.
How many games does the collection have?
Three games from the best selling genres make up the BK
Xbox
Video Game Collection.
All games are delivered in Xbox
and Xbox 360
compatible formats on one disc, and come in Xbox 360
retail packaging.
One new game will be delivered to restaurants every week during the first three weeks of the promotion, and all three titles will be available during the last weeks of the promotion.
Is there going to be a BURGER KING
Kids promotion in restaurants at the same time?
There will be a concurrent BK
Kids promotion in restaurant featuring Dance Dance Revolution premiums based on the musical video game series.
The premiums are themed to dancing, music and gaming, which follows the interactivity of the property.
The Dance Dance Revolution kids program will be at BURGER KING
restaurants from December 04 to December 31, 2006.
