EC sends Statements of Objections to Valve and five publishers on “geo-blocking”

Re:EC sends Statements of Objections to Valve and five publi... by nabla9 on Sunday April 07, 2019 @03:14AM (#19595311)

The right price is optimization problem that depends on income distribution in the whole region (same price for the whole region increases purchasing power for low income population in high income countries as well).

example:

If there are five potential customers and the maximum sums they are willing to pay are: 60€, 50€, 30€, 30€, 25€, what is the single price that maximizes revenue and profit for games?

  price   revenue
    60€    60€ 
    50€   100€
    30€   120€
    25€   125€ <-

[ Parent | on HN ]

Re:EC sends Statements of Objections to Valve and five publi... by michaelmrose on Sunday April 07, 2019 @04:02AM (#19595471)

For practical purposes You capture the most at launch and progressively discount over time capturing the most revenue by forcing those who want the game closer to launch to pay more. In theory you lose some buyers who prefer to have a competitors product right now but 60 50 30 30 is still better than 25 x 5.

[ Parent | on HN ]