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Original post by bgilb
Games just are priced completely wrong. 60$ is absurd for a game
If the game cost 10$-15$ many more people would actually buy it and they would probably end up making the same amount.
Pricing is an interesting topic, but there's many factors in play. I'm not sure of the absurdity of game prices, although that's less to do with my own study of the figures and mostly due to a gut feeling that if large publishers could make more money by pricing lower, they'd do so. They've certainly got access to better market figures than I do. Plus I remember back when game prices were a lot higher once inflation was considered. I remember Space Quest III in 1989 was around A$80. That would be, what, around A$140 in today's money? Given that full priced games cost A$110 and contain a heck of a lot more content than SQ3, that sounds like a bargain. I'm more likely to complain about the currency conversion rip-off. I mean, US$60? That's A$65, yet we pay A$110? Madness. [rolleyes]
As for whether charging $10 would earn more, I doubt it. It depends a lot on the game, but the current scheme of charging a higher price like $60 and gradually scaling down to bargain rates over the course of several years sounds to me like it should bring in more revenue than charging at the low rate to begin with.
I do know that some indie developers have experimented with price drops, and in most cases found they earned less money that way. The typical result for a price drop of $20 to $10 was for sale numbers to almost (note
almost) double the next month, then dropping back to their original figures. Note though that indie games run in a different market than the big name commercial offerings, so I don't know if the same thing would apply to prices set to boxes sold in retail stores.
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When World of Goo implemented the pay whatever you want temporary, they made vast amounts more from people who payed just 5$ (30,000$), versus those who paid the original amount (25$ only made 600$ or so)
That was a special offer that ran for a week for a rather well known indie title that had already been out for a year. I don't think it says that much about how a particular pricing scheme would work over the long term. It was mostly interesting to me as a clever marketing event. Interestingly, regular sales over Steam went up by 40% (although I don't know what figure they went up 40% from.)