Comments on: Video Game Prices: Too High?

By: Paul

Paul — Sun, 20 Feb 2011 13:43:24 +0000

I’m really surprised how much I see this view posted on the internet. Economics has shown us a long time ago that goods are not priced by some measure of their inherent “value”. They priced by supply and demand, according to these elasticities. STEAM has shown empirically that elasticity of demand is VERY elastic. That means that if you drop the price by 1% you make up for this with MORE than 1% increased revenues. This marginal costs are so low for the video game industry, total profits rise dramatically if you drop the cost. Moral of the story is games are priced WAYY to high to be maximizing profit. This just shows these large publishers act as quasi-monopolists and are hurting both their own profits and consumer’s surplus by their uninformed actions.

By: the only 1 left

the only 1 left — Tue, 07 Dec 2010 19:35:05 +0000

I agree with him that is very cheap $1 an hour you can’t beat that.

By: calin sojak

calin sojak — Wed, 07 Apr 2010 19:15:44 +0000

i think that video games need lower prices unless it is a longer game (oblivion, fallout 3) or a major frandchise (call of duty, rainbow six, ghost recon). the other day i bought an aliens vs. predator game for $80! thats a pretty high price if you ask me.