Why are $70 AAA games slashing prices so drastically?
Why are $70 AAA games slashing prices so drastically?
It's beyond insane to me that a $70 "AAAA" game (kidding, it's AAA) dips down to the absurd price of $5. I've never seen anything like it. Wish the entire Sims 4 "collection" if you can call it that was $5 total, would be incredible, or Starfield.
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It's about volume.
Selling a thing to a million people for $5 makes more money than selling it to a thousand people for $70.
They'll most likely return the price to $70 before long, so they can pick up a few whales who miss this sale and aren't patient enough to wait for the next one.
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Then... Why not just price it correctly to begin with? Huh.... I'd buy some of these newer games if they cost a reasonable amount. Starfield out here charging $70 for a 5.5/10 game
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Price tier strategy. Get impatient people to pay $70 because they need to play ASAP. And then sales to get people who won't pay $70. Pricing low permanently misses out on getting as much money from people who are willing to pay more throughout the year.
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You charge the highest price you can for the people who don't want to wait, then drop the price once you've run out of those customers. The temporary price of a sale creates a sense of urgency that it won't be this cheap again for a while, and positive word of mouth from the sale customers drives more sales for a little while once it returns to full price.
Starfield wasn't worth $70 to me, but I bought it on sale for $45 a few months later.
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Then… Why not just price it correctly to begin with?
I can't speak for the people pricing these things, but suspect the answer has to do with whales, perceived value, shareholders, regional economics, and various other things.
I agree that lots of games are overpriced, though.
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