IMG Archives
Archives  News  Vogel's Discussion Of Underpricing Indie Games Continues  

Thursday, April 23, 2009
Vogel's Discussion Of Underpricing Indie Games Continues
6:00 AM | Cord Kruse | 1 comment

On his blog, The Bottom Feeder, Spiderweb Software's Jeff Vogel continues his discussion of the pricing of independent games, specifically addressing the drawbacks of downward spiraling prices. In the second part of the discussion Vogel refutes the common reasons customers feel lower prices would be better and offers his solution to the problem.

"If You Charged Less, You Would Sell More Copies"
This is true. The problem is that I won't sell enough more to justify the lower prices.
Microeconomics tells us that as we charge less, we sell more, but we make less per sale. At some point, there is a best price, a point where (number of sales) * (profit per sale) is at its maximum. The question is, where is it? Based on my experiences shifting prices up and down, I think I'm actually at the sweet spot.
Suppose I charged a World Of Goo price, like $15. This would roughly halve my profit per sale. (Because of the way credit card fees work, the less I charge per sale, the smaller percentage of profits I make.) To make up for this cut, I would have to double my sales. Double! That is a huge increase! Doubling would be big!
Based on data I've received from distributors, I believe that about 3% of my downloads turn into sales (this is called the Conversion Rate). To make up for the price cut, I would have to increase my conversion rate to 6%. This is a HUGE rate, pretty much impossible to get for a niche product like mine. If I had a more casual-friendly product, I might manage it, but that's not my niche. I have to set a price to reflect the nature of my niche.

"I Can Buy Better Old Games At the Game Store For Far Less"
This is, honestly, a pretty hard charge to answer. When someone says, "Why should I get your game when I can get Baldur's Gate 2 for $10?" what I think is, "Dude, you haven't played Baldur's Gate 2 yet? Go get it! It's awesome! And you know something? In a few weeks, when you're done with it, I'll still be here."
I can't compete on price with old classic. Nobody can. To expect me (or anyone) to match price with a handful of old games is completely ridiculous. Can't happen.
But my games have an advantage. They're new. Go ahead and play the old classics, or at least the ones you haven't played already. Go play Fallout or Planescape: Torment. They're SWEET.
You'll be done soon enough. And, when you are, I'll still be here.
Head over to the link below to read the rest.

The Bottom Feeder: Indie Games Should Cost More, Pt. 2
Spiderweb Software

Other Mac Games News for Thursday, April 23, 2009

IMG Reviews Be a King!7:44 AM
Apple Games Features Shaun White Snowboarding6:00 AM
Majesty 2 Previewed6:00 AM
Platinum Arts Sandbox 3D Game Maker RPG Released6:00 AM
• Vogel's Discussion Of Underpricing Indie Games Continues6:00 AM
View all of the Mac games news for Thursday, April 23, 2009 on one page

Mac Games News for Wednesday, April 22, 2009

Mac Games Arcade 1.1 Released, Offers Free Game11:23 AM
Fallout Retrospective Features Developer Commentary6:00 AM
Geneforge 3 Goes Universal, Adds 32-bit Color6:00 AM
Savage 2: A Tortured Soul 2.0.0 Patch Released6:00 AM
World Of Warcraft 3.1.1 Update Now Available6:00 AM
View all of the Mac games news for Wednesday, April 22, 2009 on one page

Recent Mac Games News

Tuesday, April 21, 2009
Monday, April 20, 2009
Friday, April 17, 2009
Thursday, April 16, 2009
Wednesday, April 15, 2009

Search for other Mac games news stories or browse our Mac Games News Archive.

Archives  News  Vogel's Discussion Of Underpricing Indie Games Continues