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The Price is Wrong, Bob: Only a third of PC gamers pay full price
(www.techspot.com)
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this post was submitted on 07 Dec 2023
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I almost never buy games at full price, but that doesn't mean they're pricing them incorrectly, from the viewpoint of the company that made the game. It's a deliberate marketing strategy that works. It's sometimes called the "skimming" strategy of pricing. (It has nothing to do with embezzlement.) It just means charging the highest price the market will bear at a certain time and ratcheting it down, and at each notch, finding a new market.
If 20% of your market will buy the game at $50, and 80% will buy the game a $25, you probably still want to charge 50 first and then bring it down to 25 gradually, as this will maximize your revenue.
I'm no capitalist, but maximizing a value function is just math.