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Your math around pricing is wrong, it's not about how much it cost to make, it's about how much you'll pay to play it. Some people are willing to pay for quite
by moritonal 6y ago
Your math around pricing is wrong, it's not about how much it cost to make, it's about how much you'll pay to play it. Some people are willing to pay for quite little.
AAA games are more like AAA movies. But just like film, I find myself enjoying good TV more, which explains why I play smaller more procedural (ha, play on words) games.
- harry8 6y ago>Your math around pricing is wrong Well I doubt that. From a business perspective pricing is what you can get so you're saying OP is using the wrong model. But using the "what the market will bear model" you would need to use a rate of inflation that reflects nominal growth in dispospal income of the customer segment with the lowest disposable income. Then go a little further becuase the size of that demographic may have changed and changed shape. Estimate the demand curve, the elasticity of demand then maximise revenue in the short term Alienate your biggest customer base at your peril, as always. Short term revenue maximization is not necessarily long-term revenue maximization and is frequently at odds with such. So yes the original naieve application of cpi to retail price leaves something to be desired.