Penny Arcade just posted an interesting (and timely) article on how Steam's use of discount pricing for downloadable video game sales has, paradoxically, seems to have increased buyer's valuation of certain products. It's an interesting discussion particularly in light of my last post regarding the rising trend of e-publications at lower price points that I hope my writer friends will take the time to mull over.
Money quote:
Dejobaan founder Ichiro Lambe told the Penny Arcade Report that this subject came up in a discussion at Business in Gaming recently. “Someone lamented that gamers weren’t willing to pay enough to support us game developers, and my response was, ‘So what? That’s not their job,’” he said. “Steam’s not unique in offering games at these price points—you see Apple selling these wonderful little experiences for under the price of a latte.”
and...
“The market doesn’t care what I think any more than it cared what buggy whip salesmen thought when the automobile came around,” Lambe explained. “Bottom line: I can rail against lower prices, or I can adapt to how people are willing to pay for what I create. I’d rather do the latter.”
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