We have had some really interesting releases the recent weeks on the site. Especially two games have stood out, Torchlight and Machinarium. Both games are developed by smaller studios and only released online. Both review and sales wise they have done really good! Just looking at the numbers on our site I see it. What makes me even more proud is that I signed both titles.

We have been discussing the success of those titles, and one thing that we see in both, is pricing. They have fairly low prices. Machinarium is a bit shorter than Torchlight, but then the price is lower on that one. Torchlight you can get for around $19.95 and you get many hours of playing out of it. This is a great example for good pricing. At the end of the day its about value for money, and Torchlight is definitely that. Unfortunately I haven’t had time to play it (played through Machinarium), but once things cool down after Modern Warfare 2, Borderlands and Assassins Creed 2 I will get to it.

Once example of a game that goes the other way is the recently mentioned Modern Warfare 2, that instead of lower the price have raised it. Just in UK the game will go for £54.99!!

This more than anything made me realise the important of right pricing, regardless of the kind of product. After looking through many seasons of Dragons Den it hit me even harder, were many of them complain about bad pricing. At the same time its really hard sometimes when you will introduce a product on the market. There is many variables taking into consideration when deciding price. Development cost, margins, profit and ultimately what customers is ready to pay. I starting to learn more and more about it and see the importance. And damn, what a difference it can make!

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