Determining the Optimal Price for Your Game

Recently, Microsoft announced a price adjustment for the upcoming Outer Worlds 2, setting it at $69.99 to align with current market conditions. This move was notable as it reversed an earlier decision to price the game at $80. The initial pricing decision had sparked backlash from consumers and the developer community, with some expressing concerns that it could set a precedent for widespread price increases in the industry. The game's director attributed the pricing to factors that would need to be discussed with Xbox representatives, while others were more critical. The announcement coincided with discussions around Game Pass, which some argue is an unsustainable model that harms the industry by reducing lifetime sales of individual games. Meanwhile, the success of indie titles like Clair Obscur: Expedition 33 has raised questions about the relative value of games versus their pricing. As the industry grapples with the impact of premium game pricing, mid- and budget-tier publishers are reassessing their own pricing strategies. Chris Bergman, CEO of Gylee Games, explains that his company initially priced their beat-em-up title Ra Ra Boom at $24.99 but later reduced it to $19.99 due to market conditions. Bergman notes that the team will need to sell more units to recoup the revenue loss but believes the lower price will attract more buyers. He also points out that digital storefronts like the PlayStation Store and Steam allow consumers to sort games by price, which can aid in discovery. Alexis Trust, product lead at Chucklefish, observes that AAA titles can impact sales of other games within their release windows, particularly for indie games with new IPs. Tom Kaczmarczyk, CEO of IndieBI, notes that Game Pass has grown in popularity and now affects consumer perceptions of game prices, which in turn influences publisher pricing strategies. Trust explains that changes in premium game monetization, particularly with live service titles, are altering how consumers evaluate the value of indie titles. While the market may be depressed and volatile, the fundamentals of game pricing strategy remain crucial. Prices are set by a range of factors beyond just top-end titles, and gamers' perception of value is influenced by various criteria. Bergman expects the market to bifurcate, with AAA titles becoming more expensive and indie games becoming less expensive. The key to success lies in understanding the complexities of game pricing and adapting to the changing market landscape.