This might seem like a paradoxical conclusion bu there are two other factors to take in to account. The first one is that the amount of people spending money on games has increased massively and it grows every year. The second one is that you can multiply games out of thin air essentially. You make the game which has a cost but then you can jist multiply it at virtually no cost, even physical copies we're talking about cents.
It doesnt really matter for how much you sell a game. It's not like a physical product where if you sell for less than the manufacturing cost, you'll lose money. You could sell a game for a dollar and make a profit if you sold enough copies. Selling 100M copies for a dollar is more profit than selling 1M for 70 or 80$.
I am ABSOLUTELY CONVINCED that for the vast majority of games, they would make significantelly more money by reducing the price to 50$, than they do by increasing it to 70$. There is no doubt in my mind about that. There are very few exceptions like GTA, because GTA is a game thry will eventually sell for 50$ to the people who wont spend more than 50$ because that game will stay in peoples wishlists indefinitelly. Most games dont. People forget about it and lose interest. The more time passes the worse it gets. I bet most people if they dont buy a game in the first 2 years, they'll move one. Maybe they'll end up buying it on a 90% sale later, but 50$ instead of 70$ after two years is no longer gonna cut it.
Some console exclusives work too because they have a more limited potential customer base.
Probably every microsoft game, ubisoft, EA (except FIFA) etc, would make significantelly more money if they were sold at 50$.
People will buy a 50$ game if they think it's kinda cool. Wouldn't call it an impulse buy but it might just be if we compare it to 70 or 80$ games. People will only buy a 70 or 80$ game if they are REALLY interested.
TL: DR Most games would make more money if they were 50$
It doesnt really matter for how much you sell a game. It's not like a physical product where if you sell for less than the manufacturing cost, you'll lose money. You could sell a game for a dollar and make a profit if you sold enough copies. Selling 100M copies for a dollar is more profit than selling 1M for 70 or 80$.
I am ABSOLUTELY CONVINCED that for the vast majority of games, they would make significantelly more money by reducing the price to 50$, than they do by increasing it to 70$. There is no doubt in my mind about that. There are very few exceptions like GTA, because GTA is a game thry will eventually sell for 50$ to the people who wont spend more than 50$ because that game will stay in peoples wishlists indefinitelly. Most games dont. People forget about it and lose interest. The more time passes the worse it gets. I bet most people if they dont buy a game in the first 2 years, they'll move one. Maybe they'll end up buying it on a 90% sale later, but 50$ instead of 70$ after two years is no longer gonna cut it.
Some console exclusives work too because they have a more limited potential customer base.
Probably every microsoft game, ubisoft, EA (except FIFA) etc, would make significantelly more money if they were sold at 50$.
People will buy a 50$ game if they think it's kinda cool. Wouldn't call it an impulse buy but it might just be if we compare it to 70 or 80$ games. People will only buy a 70 or 80$ game if they are REALLY interested.
TL: DR Most games would make more money if they were 50$
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they USED to discount them. Not anymore.