Xipe Totec, on 15 December 2013 - 07:19 PM, said:
Er...yeah.
The reason why businesses like Forbes find these things interesting is that they are experiments in elasticity.
It's completely viable to say X or Y pricing structure is suboptimal, because there is such a thing of a suboptimal pricing policy under which everyone loses.
It results in a loss in consumer surplus (how much the buyers enjoy what they have) and a reduction in overall sales.
PGI is assuming they have a highly inelastic product...or they are cash-poor and need money now.
Remember that PGI and IGP actually don't have a microtransactional specialist, so they're kind of just shooting blind and guessing.
Takeaway: Merely because you can charge $240 for a product doesn't mean you necessarily should or that that price level is profit maximizing.
Xipe Totec, on 15 December 2013 - 07:31 PM, said:
Side Note:
IGP is likely hemmoraging money, they've outsourced Tactics (because they hope someone can save it) and have mothballed all their other projects.
In effect, they need to core down, but are likely carrying big losses on books from their attempt to compete with LoL (why?) and their failed IPad game.
Rough times, because it's hard to get cash in pocket as a game dev, given the VentCap market demands such a quick turnaround
WHY CAN I COMPREHEND THIS WITH FAR MORE EASE THAN REITRIX'S ANECDOTE WALL!?
Ultimately, to me, this sale comes off as supremely dickish, and while those on the mainland will open up their babies (or others') to obtain the necessary organs to purchase a supremely dickish piece of virtual gear, I'll look for another title that has better replay value.
As, you know, I could get a real model MadCat cast in solid gold with that kinda money. Which would only increase in value, long after this title's servers have been wiped.
Edited by RedThirteen, 15 December 2013 - 10:47 PM.