Speaking during a Summer Game Fest interview with Game Business Live (via GameSpot), Microsoft's recently installed Xbox chief strategy officer, Matthew Ball, spoke about the impact of...
I did the math when this happened, they were absolutely banking on losing customers, but they misplayed their hand. They figured they would still be making money with the price increases even if they lost nearly third of their US gaming audience. By my back of the napkin numbers, as long as they lost less than 30%, they would be making more profit.
They must have lost more than they planned if they pulled a reversal or the price increase was a trial balloon to gauge response and whether people would come back for reduced prices.
These companies are of course happy to treat their customers like one big psychological experiment.
I did the math when this happened, they were absolutely banking on losing customers, but they misplayed their hand. They figured they would still be making money with the price increases even if they lost nearly third of their US gaming audience. By my back of the napkin numbers, as long as they lost less than 30%, they would be making more profit.
They must have lost more than they planned if they pulled a reversal or the price increase was a trial balloon to gauge response and whether people would come back for reduced prices.
These companies are of course happy to treat their customers like one big psychological experiment.
True! Business is a science (with devastating human consequences).
They threw us off by wearing those sharp haircuts and neat suits instead of wild hair and lab coats.