Attach rate software

So, if a service contract is designed to bring genuine value to the customer, what better time to sell that agreement than when the customer is already making a product purchase?

So, how can you sell more service contracts? The attach rate is simply the percentage of product sales transactions that include a service contract at the point of sale. Looking at Animal Crossing on the Switch for example, Nintendo discloses that the game sold Naturally, attach rates can change over time — until the system or game are not being produced anymore.

Looking back at the seventh generation of consoles, for example, Sony managed to sell-in The PS3 is discontinued, but people can still buy games for the system, which means the tie ratio will only increase in this case — until Sony cuts off software supply altogether.

Tie ratios have always been faulty to a degree: for example, a given console can be successful but have a low tie ratio if the hardware is selling exceptionally well. On a unit basis, Sony sold over seven times the amount of hardware and software — which means the tie ratio here suggests a similar health of the business but fails to show how the company destroyed Nintendo in that generation on an absolute basis.

There are a lot of other points that could be made in this context, but I will skip those for brevity. Today, I believe tie ratios have lost even more of their meaning because of the advent of digital storefronts and the subsequent rise of quickly discounted blockbusters, cheap shovel ware in retail and even more so digitally, or low-priced indie games flooding the markets. Expand the sub menu Awards. Expand the sub menu Video. Expand the sub menu What to Hear.

Expand the sub menu Digital. Expand the sub menu Theater. Expand the sub menu VIP. Expand the sub menu More Coverage. Information may be abridged and therefore incomplete.

Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation. Popular Articles.