December 22nd, 2010
What does it mean when Steam, the world's largest PC gaming store, regularly slashes prices of its games by upwards of 75%, and in some cases 90%? I'll tell you.
The frequency of such discounts, including this week's massive Christmas sale -- with many top games going for less than $5 -- is proof that gamers are responding in kind. Steam wouldn't be offering these crazy discounts as often as they do if the people involved weren't making money.
In other words, video games are elastic. When elasticity occurs this often, and at mark-downs well below the $50-60 MSRP, it means gamers are no longer willing to pay full price. And since games cost less to make than Hollywood movies, it's not unreasonable to expect them to cost about the same as a movie ticket or at most the cost of a DVD.
What do you think: Is the rise of Steam with the help of regular discounts proof that games cost too much? Have you stopped paying full price for games, waiting instead until they go on sale to buy them?
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