Game Pricing, Look Out Below

In the evolving landscape of game development and distribution, Jeff Tunnell, a founder of GarageGames, stands out for his forward-thinking approach to game pricing. Tunnell's advocacy for lower game prices has shaped the pricing strategies at GarageGames and left an indelible mark on the industry. As we navigate through the various facets of game pricing, from early challenges to current trends and future outlooks, Tunnell's experiences and insights serve as a beacon for developers and publishers.

In 1997, when the average price for casual games was considerably higher, Tunnell advocated for a $19.95 price point, a move that was met with skepticism from customers and industry peers alike. Despite the initial resistance, his persistence in pushing for more accessible pricing models didn't wane. At the GarageGames game download store, Tunnell introduced a $14.95 price point, demonstrating his commitment to affordability. He even proposed a $1-3 price range for games, a concept that, while still being fully realized, laid the groundwork for the pricing strategies we see today.

The challenges encountered along the way were significant. Customers initially failed to appreciate the $19.95 price, questioning the value of games offered at such a low cost. However, a pivotal moment came when GarageGames decided to increase the price at their store. This paradoxically led to increased revenue, highlighting the complex dynamics between price perception and consumer behavior. Although $1 games never fully materialized, Tunnell's efforts set new industry standards, most notably with the $100 Torque Game Engine, making game development more accessible and affordable.

The success of lower-priced games became evident with the introduction of Xbox Live Arcade (XBLA), which adopted lower price points based on gamer surveys. One of Tunnell's projects, Marble Blast Ultra, achieved remarkable success at a $10 price point, further validating his vision. This success has since influenced current trends in game pricing, with platforms like Reflexive's new download store and casual portals like Big Fish Games offering games at reduced prices and membership pricing models, respectively.

Looking to the future, the iPhone App Store has set a precedent with $0 game pricing, indicating a potential industry-wide shift towards this model. Factors driving these price reductions include increased accessibility to game development tools and education and growing competition, which exerts downward pressure on prices. This trend is not limited to the mobile or casual gaming sectors; the Flash game market is already experiencing these changes, and there's speculation that console and AAA titles will follow suit.

For game developers and publishers, navigating this shifting landscape requires flexibility and a willingness to explore alternative revenue models, such as ad-supported games and microtransactions. Indie developers, in particular, must emphasize adaptability to survive and thrive in a market where traditional pricing models are being challenged.

Jeff Tunnell's early advocacy and innovative approach to game pricing have undeniably influenced the industry, leading to more accessible games and opening the door for new revenue models. As we move forward, his experiences remind us of the importance of adaptability and the potential for alternative pricing strategies to shape the future of game development and distribution.

First published February 5, 2009 and last updated at February 13, 2024

Tags: Monetization