Comment on "No matter what price we choose, we always make the same revenue"parentComments−codelion14yWhere did you hear that from ? On the contrary. http://www.geekwire.com/2011/experiments-video-game-economic... "What we saw was that pricing was perfectly elastic. In other words, our gross revenue would remain constant."−taejo14yIn that interview, Gabe distinguishes between silent price changes and sales: silently changing the price had no effect on revenue, a promotion discount increased revenue.−codelion14yOnly in certain cases, and he mentions that they do not understand it well enough so they are still experimenting.
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Where did you hear that from ? On the contrary. http://www.geekwire.com/2011/experiments-video-game-economic... "What we saw was that pricing was perfectly elastic. In other words, our gross revenue would remain constant."
In that interview, Gabe distinguishes between silent price changes and sales: silently changing the price had no effect on revenue, a promotion discount increased revenue.
Only in certain cases, and he mentions that they do not understand it well enough so they are still experimenting.