Send News. Want a reply? Read this. More in the FAQ.   News Forum - All Forums - Mobile - PDA - RSS Headlines  RSS Headlines   Twitter  Twitter
User Settings
LAN Parties
Upcoming one-time events:

Regularly scheduled events

Report this Comment
Use this form to report the selected comment to the moderators. Reporting should generally be used only if the comment breaks forum rules.

38. Re: Steam Top 10 Apr 2, 2013, 08:43 Dev
netnerd85 wrote on Apr 1, 2013, 00:14:
jacobvandy wrote on Mar 31, 2013, 22:19:
We go over this at least once a month, lol... the weekly top 10 is, YES, RANKED BY TOTAL REVENUE.
but how... it's $3!
Because games on sale... sell MOAR. I know its unbelievable that a sale could actually increase total revenue. I mean EA says it devalues the game.

Valve has talked about this before.
We do a 75 percent price reduction, our Counter-Strike experience tells us that our gross revenue would remain constant. Instead what we saw was our gross revenue increased by a factor of 40. Not 40 percent, but a factor of 40. Which is completely not predicted by our previous experience with silent price variation.
Then we decided that all we were really doing was time-shifting revenue. We were moving sales forward from the future. Then when we analyzed that we saw two things that were very surprising. Promotions on the digital channel increased sales at retail at the same time, and increased sales after the sale was finished, which falsified the temporal shifting and channel cannibalization arguments. Essentially, your audience, the people who bought the game, were more effective than traditional promotional tools. So we tried a third-party product to see if we had some artificial home-field advantage. We saw the same pricing phenomenon. Twenty-five percent, 50 percent and 75 percent very reliably generate different increases in gross revenue.
And not just valve
indie developer and Super Meat Boy co-creator Edmund McMillen, these promotions can increase sales to an almost staggering extent. His 2D dungeon crawler The Binding of Isaac, for example, saw sales multiply by five when it was marked down by 50 percent, and once it hit the front page as a temporary "Flash Deal" (for 75 percent off), sales multiplied by sixty.
Believe it or not, those figures aren't all that unusual. Valve's director of business development, Jason Holtman, says plenty of developers have seen their sales increase exponentially, giving them a very healthy boost in revenue.
"It's not uncommon for our partners to see [a] 10-20 times revenue increase on games they run as a 'Daily Deal.' Some titles really take off and see as much [as a] 70-80 times increase in revenue," Holtman said.
Login Email   Password Remember Me
If you don't already have a Blue's News user account, you can sign up here.
Forgotten your password? Click here.


Blue's News logo