75% off the Price of a Game, 15% More Reveune

According to Gabe Newell of Valve , cutting 75% of the price off your game leads to a 15% increase in revenue.

After huge holiday sales that were offered on Steam, Valve noticing something that really isn’t so surprising: Games with discounts shot up in sales drastically. This has led to the conclusion that, shockingly, games that cost less, will sell more copies. The interesting part of this, however, is that they actually made a greater profit because of it.

Of course, the fact that the games were cheaper than normal for a limited amount of time is going to spike sales up a bit more exageratedly than if games were at the discounted price at all times. Still, it lends some credibility to the opinion (which I share) that games are simply overpriced. If they were to drop down in price a bit, they would increase demand and actually make greater profits.

I hope that some other developers decide to start experimenting with lower priced games.