4 ms·
This seems to disagree with what I've heard of Valve and Steam sales. That the bigger the discount, the more (total) revenue is made, almost across the board.
by decadentcactus 15y ago
This seems to disagree with what I've heard of Valve and Steam sales. That the bigger the discount, the more (total) revenue is made, almost across the board.
$50 game -> 50% off, 100 sales
$50 game -> 75% off, 500 sales etc
- codelion 15y agoWhere did you hear that from ? On the contrary. http://www.geekwire.com/2011/experiments-video-game-economics-valves-gabe-newell http://www.geekwire.com/2011/experiments-video-game-economic... "What we saw was that pricing was perfectly elastic. In other words, our gross revenue would remain constant."
- taejo 15y agoIn that interview, Gabe distinguishes between silent price changes and sales: silently changing the price had no effect on revenue, a promotion discount increased revenue.
- codelion 15y agoOnly in certain cases, and he mentions that they do not understand it well enough so they are still experimenting.
- stonemetal 15y agoYeah, but those are sales(aka short duration discounts). He noted a spike that eventually fell off. I bet the longer steam discounts see sales fall off in a similar manner.