Dynamic pricing is the concept of charging people different prices for the same product, based on their willingness to pay. In other words, a game may present you a fluffy horse for 5$, while your friend Joe's store shows the same horse for 20$.
I personally don't agree with this practice. That said, it's a fairly new idea to me, especially in video games. I know travel agencies often do the same thing, but I've not realized some F2P games employ similar strategies.
What do you think about this?
No.
Dynamic pricing is the pricing of items that changes with time. Not different prices at the same time to different people.
Its a supply and demand thing. So gas prices (in the US) may go up with the onset of the holiday season; holiday, airline, hotel room prices vary with ability etc.
Now I'm not saying that what you are talking about doesn't exist but that is not what "Dynamic Pricing" is.
Dynamic pricing is the pricing of items that changes with time. Not different prices at the same time to different people.
Its a supply and demand thing. So gas prices (in the US) may go up with the onset of the holiday season; holiday, airline, hotel room prices vary with ability etc.
Now I'm not saying that what you are talking about doesn't exist but that is not what "Dynamic Pricing" is.
Indeed, op likely had on mind learning machines that create and adjust packages and offers suiting customers/players individually.
I don't see how they could legally do this, at least without letting the player know someone else is getting it cheaper. The only time I've seen this occur in a game is when there is a % off coupon for in game cash shop money.
I can see them offering the ability for players to pay more if they WANT to but not forcing someone who has more to pay more just because they have spent more in the past.
This is already done if player A plays on US servers and player B plays on China servers.
Its not dynamic pricing - it is regional pricing.
Charging differrent values in the same region at the same time is a HORRIBLE idea, it would lead to mass exodus.
The second point you made is what this is, it's isn't regional it's based just on the person, so you could pay $60 and your friend could be paying $40.
The crazy thing is that a company like this already exists and does these practices. Defo check out the Jim sterling video on it, breaks it down much better.
I hate the idea of dynamic pricing where the price is set by the developers. Whilst there is a small chance such mechanics would be used as genuine rewards (i.e. you've been playing the game a lot, therefore have £5 off as thanks), the reality is dynamic pricing is just another method to rip off customers.
Where dynamic pricing works is when the price isn't set by the developers, but operates on a "pay what you want" type deal. What happens in these situations is that the 80-90% of the population that is honest and fair, will genuinely pay a fair price. The remainder are the leeches as well as people who can't afford it, who'll pay the minimum possible.
Pay what you want schemes generally earn a decent amount and average income is just as good as if developers set the price, with the added bonus that the customers feel good about the purchase. They can't blame the seller for overpricing and things like that. Hell, this is the entire reason that Humble Bundles work - most of us are pretty reasonable and will pay a reasonable price for a bundle!
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Dynamic pricing is the concept of charging people different prices for the same product, based on their willingness to pay. In other words, a game may present you a fluffy horse for 5$, while your friend Joe's store shows the same horse for 20$.
I personally don't agree with this practice. That said, it's a fairly new idea to me, especially in video games. I know travel agencies often do the same thing, but I've not realized some F2P games employ similar strategies.
What do you think about this?
No.
Dynamic pricing is the pricing of items that changes with time. Not different prices at the same time to different people.
Its a supply and demand thing. So gas prices (in the US) may go up with the onset of the holiday season; holiday, airline, hotel room prices vary with ability etc.
Now I'm not saying that what you are talking about doesn't exist but that is not what "Dynamic Pricing" is.
Dynamic Pricing will completely and totally have different prices for different people at the same time (It's literally the sales pitch of the firms that try to third party their way into being the middle man). It will have different "daily deals"/"bundles" and similar for different people as well.
Practice doesn't make perfect, practice makes permanent.
"At one point technology meant making tech that could get to the moon, now it means making tech that could get you a taxi."
What happens in these situations is that the 80-90% of the population that is honest and fair, will genuinely pay a fair price.
lol .. you believe 80-90% of the population is honest and fair? I have a bridge to sell you.
Just the fact that f2p is so popular, most don't pay and a few whales pay through the roof should tell you something about human nature. And it is not "80-90% is honest and fair".
I like Warframe's way of doing it, get a chance to get a discount, sometimes a massive one, everyday you log in. That game's gotten more of my money than many other f2p games and even if I drop it a week later I don't experience a lot of regret from my purchase.
I don't necessarily support dynamic pricing but discount incentives for potential returning customers sounds okay. Many games offer free packages for returning players but they're often unsatisfactory on their own. I think coupling the packages with a huge discount in the cash shop would be fantastic.
I like Warframe's way of doing it, get a chance to get a discount, sometimes a massive one, everyday you log in. That game's gotten more of my money than many other f2p games and even if I drop it a week later I don't experience a lot of regret from my purchase.
well .. warframe is a good game. But i wouldn't care less about its dynamic pricing (or lack of). I don't pay.
I got hit with dynamic pricing from Sony or CDPR. The Witcher 3 is on sale right now. My sub account was offered the game at 50% off while my main account was offered the game at 60% off. It's only $5 difference but it is the principle that annoys me and that I have to check both accounts before completing a purchase.
I'd look at it differently, I'd be like sweet I get an extra 10% off.
Cryomatrix
Catch me streaming at twitch.tv/cryomatrix You can see my sci-fi/WW2 book recommendations.
I got hit with dynamic pricing from Sony or CDPR. The Witcher 3 is on sale right now. My sub account was offered the game at 50% off while my main account was offered the game at 60% off. It's only $5 difference but it is the principle that annoys me and that I have to check both accounts before completing a purchase.
That's really strange. I wouldn't have expected to see this on the actual game stores. Are both of your accounts in the same country?
Comments
Dynamic pricing is the pricing of items that changes with time. Not different prices at the same time to different people.
Its a supply and demand thing. So gas prices (in the US) may go up with the onset of the holiday season; holiday, airline, hotel room prices vary with ability etc.
Now I'm not saying that what you are talking about doesn't exist but that is not what "Dynamic Pricing" is.
I can see them offering the ability for players to pay more if they WANT to but not forcing someone who has more to pay more just because they have spent more in the past.
The crazy thing is that a company like this already exists and does these practices. Defo check out the Jim sterling video on it, breaks it down much better.
Where dynamic pricing works is when the price isn't set by the developers, but operates on a "pay what you want" type deal. What happens in these situations is that the 80-90% of the population that is honest and fair, will genuinely pay a fair price. The remainder are the leeches as well as people who can't afford it, who'll pay the minimum possible.
Pay what you want schemes generally earn a decent amount and average income is just as good as if developers set the price, with the added bonus that the customers feel good about the purchase. They can't blame the seller for overpricing and things like that. Hell, this is the entire reason that Humble Bundles work - most of us are pretty reasonable and will pay a reasonable price for a bundle!
Practice doesn't make perfect, practice makes permanent.
"At one point technology meant making tech that could get to the moon, now it means making tech that could get you a taxi."
I don't necessarily support dynamic pricing but discount incentives for potential returning customers sounds okay. Many games offer free packages for returning players but they're often unsatisfactory on their own. I think coupling the packages with a huge discount in the cash shop would be fantastic.
Cryomatrix
You can see my sci-fi/WW2 book recommendations.