Video Game Pricing Strategies

Introduction

Video games have ever been the most important leisure products for several hundred thousands of kids around the world . From the Nintendo to the Sega and from the PS2 to the Xbox , each company and its video game has had its reign over the consumer market . Although price has relatively been irrelevant to the consumer market (mainly kids aged 5 to 15 , however , during the past decade due to the changing vicissitudes of the economy , pricing became an important selling factor for a significantly large portion of the consumer market . The

aim of this is to investigate the different pricing strategies for video games and how they were used by different gamers to kick off their product sales

Importance of a Pricing Strategy

For the success of any product , its pricing strategy is very important It determines the profit margins , the net revenue and sales volume . It is also related to product placement . Pricing also affect other marketing mix elements like features of the product , the target market etc . Video game market is a complex place . The technology is advancing every second and companies are products like X Box 360 , Nintendo and play station 3 . It is also known that whenever customers make a decision to but what console they prefer , price is not the only thing that they consider , the features of the product , the life of the product and their adaptability to the technology is also considered . Another important feature considered is the compatibility of the...