Another Example Of How Wrong The Game And Music Industries

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The massive Steam holiday sale was also a big win for Valve and its partners. The following holiday sales data was released, showing the sales breakdown organized by price reduction:
10% sale = 35% increase in sales (real dollars, not units shipped)
25% sale = 245% increase in sales
50% sale = 320% increase in sales
75% sale = 1470% increase in sales

(via http://www.codinghorror.com/blog/archives/001293.html)

Basically what they proved is that when a game is priced in a reasonable price they sell more. This way sells go up, privacy goes down and everyone are happy (besides the lawyers which have no one to sue for copyrights infringement).

Same thing can be learnt from the AppStore where $9.99 considered as an outrageous high price, but the app developers still make decent I come with those prices due to high volume of sales.

Posted via email from Arik’s posterous

  • ekampf

    most app developers dont make decent income (or income at all).
    we only hear of the very few who do…

    The companies that do have a decent model on top of an app make their money indirectly (like Amazon selling you Kindle books and letting you read them via an app)

  • http://www.arikfr.com/blog/ Arik Fraimovich

    Of course most app developers don't make decent income, but that's applies
    to the traditional software business too – it's not because of the pricing.
    If at all, the low pricing enables them to increase the chances of making
    any revenues.
    And saying that only apps like the kindle make decent money is wrong too,
    because there are many examples of utility apps that generate good income
    too, like Instapaper or Tweetie. Although that depends on your definition of
    “decent”…

  • http://www.arikfr.com/blog/ Arik Fraimovich

    Of course most app developers don't make decent income, but that's applies
    to the traditional software business too – it's not because of the pricing.
    If at all, the low pricing enables them to increase the chances of making
    any revenues.
    And saying that only apps like the kindle make decent money is wrong too,
    because there are many examples of utility apps that generate good income
    too, like Instapaper or Tweetie. Although that depends on your definition of
    “decent”…