“Below the optimal price, raising the price increases revenue; above it, higher prices can reduce both unit sales and total revenue,” the report continues. “That happens because the extra income from buyers who still purchase at the higher price is outweighed by the revenue lost from those who choose not to buy.”
MIDiA’s analysis used Gabor-Granger pricing tests alongside a survey of more than 2,000 U.S. consumers. It found that 79% of respondents who were interested in GTA 6 said they would “definitely” or “probably” purchase the game at $49.99, while only 16% said the same about a $149.99 price point. Hardcore fans were roughly twice as likely to pay the highest price, but MIDiA notes even that increased willingness wouldn’t offset the overall drop in demand caused by a steep price hike.
Although the survey tested reactions to a $150 price rather than $100 specifically, MIDiA estimates that pricing GTA 6 at its “optimal” $69.99 could lead to about 8.6% of U.S. adults buying the title — roughly 22.9 million copies — generating an estimated $1.6 billion in revenue.
“Our findings should caution developers considering significant price increases for games going forward,” concludes Brandon Sutton, a MIDiA games analyst and co-author of the study.
If Rockstar is weighing alternative pricing, these are the same kinds of factors it would likely consider. The MIDiA study doesn’t guarantee any outcome, but it suggests that overpricing GTA 6 could be counterproductive — so there’s hope the final launch price won’t be unduly punitive for players.
Source: gamesradar.com
