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5. Re: Evening Consolidation Feb 25, 2013, 21:31 Trevellian
 
Beamer wrote on Feb 25, 2013, 20:39:
I've speculated on pricing here a ton, and I'm 100% certain the publishers are investigating it.

But not just high. Don't get me wrong, Call of Duty will always come in high. $59.99? Sure. $69.99? Why not.

Other games, though? They know damn well they can't sustain that. And they know damn well that there's a sweet spot. There are some issues:
1) Games will always sell a ton their first week, even if the price is high. It's hard to walk away from that
2) Games will always sell a ton when prices drop. Does a game on Steam sell better when it's released at $4.99 or when it's released at $9.99 then cut to $4.99 for two weeks every two months?

I'm guessing that last part is the big problem. Games hit at $59.99. They then go on sale from time to time. They then get price drops. They go on sale a few more times. Then prices drop again.

If the massive failure of JC Penny proves anything, it's that most people are motivated not by everyday low prices but by getting a bargain, especially a time-sensitive bargain that's act-now or lose.

Steam probably generates 30% of its annual revenue during the Christmas sale. Maybe more. Starting with a lower priced product instead of a higher one you regularly and quickly reduce probably wouldn't work as well.

I have to say 49.99 is the sweet spot. I will admit, even though it's only a 10 dollar difference, if a game I want comes out at 50 bucks instead of 60, I won't even bat an eye when it comes to purchasing it.

I used to buy far more games during the Xbox/PS2 generation because they were 50 dollars.
 
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