{"id":304607,"date":"2010-02-10T18:22:00","date_gmt":"2010-02-10T23:22:00","guid":{"rendered":"http:\/\/techdirt.com\/articles\/20100210\/0021598104.shtml"},"modified":"2010-02-10T18:22:00","modified_gmt":"2010-02-10T23:22:00","slug":"online-gaming-store-lowers-prices-75-sees-sales-shoot-up-5500","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/304607","title":{"rendered":"Online Gaming Store Lowers Prices 75%, Sees Sales Shoot Up 5500%"},"content":{"rendered":"

We were just talking about how some in the recording industry are realizing that raising prices on downloadable songs may have been a mistake<\/a> (just as the book publishing world is pushing to raise ebook prices<\/a> — despite a fair bit of evidence that people actually are expecting prices to go in the other direction<\/a>). It’s as if they don’t understand price elasticity and how you can quite often maximize revenue by lowering price.<\/p>\n

In the video game world, at least, they seem more open to this concept. Last year we wrote about Valve reporting on some numbers<\/a> that showed the more they reduced the price, the greater the money they brought in. In the case of reducing the price by 75%, Valve found sales increased 1470%. Not bad! But apparently an online video gaming store in Sweden has them beat.<\/p>\n

Rasmus Larsson points us to a report from an online gaming store that also reduced prices by 75% and saw sales increase by an astounding 5500%<\/a> (Google translation from the original<\/a>). A similar test, with a price decrease of 50% saw sales increase 533%. Interestingly, after each price decrease, the company put the price back up again and saw a (slight) sales increase at the higher price too. As the article notes “the price is marketing.”<\/p>\n

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We were just talking about how some in the recording industry are realizing that raising prices on downloadable songs may have been a mistake (just as the book publishing world is pushing to raise ebook prices — despite a fair bit of evidence that people actually are expecting prices to go in the other direction). […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-304607","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/304607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=304607"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/304607\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=304607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=304607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=304607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}