One of the key issues you’ll need to address is determining the selling price of your game. You’ll quickly find that most indie games are priced very low. The reasoning behind this is simple: many developers believe that lower prices can lead to what we might call “impulse sales”—players buying the game simply because it’s cheap. However, this strategy has its downsides, particularly when it comes to visibility. The price of your game often communicates something about its quality. We’ve already discussed how the term “indie” has lost much of its significance, and the same could be said about “indie game.” It’s difficult to equate a simple 2D game with a handful of levels, basic mechanics, and simple music to a fully polished 3D game with stunning graphics, engaging mechanics, and high-quality soundtracks.
As a result, it’s understandable that the price should reflect the perceived quality of the game. However, some argue in favor of rock-bottom pricing, believing it will attract more buyers, who in turn will attract more buyers. Few, though, believe that the term “indie” should matter less, and that the price should reflect the effort and work that went into creating the game.
To illustrate this, consider a study from the University of Bonn, which found that the best wine is simply the one that costs more. In the study, volunteers were asked to evaluate wine, but they were first shown the price label. In some cases, they had to pay for it, while in others, it was a free tasting. It’s worth noting that the wine was exactly the same in both scenarios. The study revealed that the idea of a higher price automatically increased the perceived quality of the wine. This is similar to what happens at the supermarket when we choose a branded product over an unknown one. Of course, this holds as long as the difference in price isn’t absurd—after all, no one would buy vinegar at $100 a bottle.
This study highlights how a very low price can discourage potential buyers. So, should you raise your price? The truth is that this strategy is not foolproof either.
In the gaming world, there’s a concept called the “wishlist conversion factor.” Wishlists are essentially a list of potential buyers—players who have shown interest in a particular game. But clicking a button to add a game to your wishlist is easy, and doesn’t necessarily indicate intent to buy. The conversion factor aims to predict how many of those who added the game to their wishlist will actually purchase it. Interestingly, while lower prices tend to increase wishlist additions, higher prices can still result in higher profits despite fewer sales.
How is this possible? As mentioned elsewhere, selling 250 copies at $1 generates the same revenue as selling 25 copies at $10. A $25 price point, while higher, is still affordable for most players. For example, in Italy, $25 is roughly the price of two pizzas and a couple of beers—not an unreasonable amount to spend on a game. The key is that players who truly enjoy your game will pay $5 or $25 without much hesitation. Others may only purchase if the price is low enough to feel like a bargain. Interestingly, lower prices often attract more… demanding customers, who are more likely to find faults with the game. Conversely, a higher price may attract customers who genuinely believe the game is of higher quality. A demo, which is always a good idea, can help make this decision easier.
It’s also worth noting that many players expect games to eventually be discounted, so even a higher initial price may be seen as temporary. In the long run, they expect the price to drop.
Speaking from my personal experience, I can say this theory holds true. When I launched Pinbot, I set a fairly high price, keeping in mind eventual discounts and gradual price drops. Initially, my wishlist numbers were low, but the conversion factor proved correct: after the first discount, I sold what I needed to sell. However, after lowering the price further… nothing happened! I sold just one more copy, which likely went to someone who happened to stumble upon it late.
Here’s where the price seems to matter little: no matter what price you set, your game appears to reach a certain revenue threshold regardless. It’s as if, despite all the data and predictions, the true outcome is still uncertain, and the whole process seems to resemble a lottery. Everyone is essentially placing bets on what will work. That said, there may be one way to break out of this deadlock: marketing.
See also:
- Why expensive wine appears to taste better
- Exploring the Steam wishlists/sales ratio
- Steam Sale Wishlist Conversion Rate Analysis