The race to the bottom is everywhere, but you're right in that it's most apparent in games. As always, developers are not necessarily savvy in business. Common

The race to the bottom is everywhere, but you're right in that it's most apparent in games. As always, developers are not necessarily savvy in business. Common sense suggests that undercutting competition with lowered prices will drive market share upwards, eventually beating them out. This is a desperation move, and one that only ever works in the short term, if it does at all. The truth is the race to the bottom exists because this kind of tactic is deployed by everyone in response to everyone else. But it will only work as a calculated move that crunches the numbers to find a sweet spot. Reducing your game from $5 to $1 might get a lot more customers, but you'll need to increase your user base fivefold just to match your previous revenue. That's not realistic in most cases. It's the same logic that people without a real edge mistakenly employ when they say they'll disrupt an industry by taking something really valuable and making it both better and free. It's not sustainable, but everyone does it.