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Actually, the quote you highlight is where I started to take umbrage with the blog. I'm willing to listen a person's opinion on what is ideal or fair, but here

Actually, the quote you highlight is where I started to take umbrage with the blog. I'm willing to listen a person's opinion on what is ideal or fair, but here the author asserts an empirical fact without evidence. The evidence that I have actually heard[0] from valve indicates the opposite: that total revenue is unchanged by price. I am willing to believe that it can vary from product to product, but I am not willing to believe such an absolute assertion without any evidence. I agree with your point about 30%. 0: https://www.geekwire.com/2011/experiments-video-game-economics-valves-gabe-newell/ https://www.geekwire.com/2011/experiments-video-game-economi...

jeremy7600 9y ago
Did you skip this part of the article? "But then we did this different experiment where we did a sale. The sale is a highly promoted event that has ancillary media like comic books and movies associated with it. 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." and then: "Twenty-five percent, 50 percent and 75 percent very reliably generate different increases in gross revenue."