this post was submitted on 15 Mar 2025
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It's a digital good, just a bunch of 1s and 0s in a particular order. The manufacturing cost of making a copy is near 0. There are license fees, but those are almost always pencentage based. Valve takes 30%, the publisher takes a percentage, and so on.
Then it's a balance of volume vs price. If you can sell 10,000 copies at $10, vs 1,000 at $15, ($100,000 vs. $15,000), it is more profitable to sell the game at $10.
And human psychology is manipulable. Seeing the original price at $15 will influence them to value the game around $15, and so $10 would be a good deal. If they want it, they should buy it on sale. Where as seeing the original price at $10 would influence them to value the game at $10, which could mean it's not as good as a $15 game they can get for $10 on sale.
Valve ceo is thinking about the next project from his mega yachts