Pay-What-You-Want: Pricing Model Of The Future?

Monday, August 13th, 2012 by admin. Filed under: Game News.

Passing fad, or glimpse of the future?

Passing fad, or glimpse of the future?

In 2007, Radiohead adopted a very unusual pricing model for its new album, In Rainbows. Rather than setting a price themselves, Radiohead allowed its fans to choose their own price — any price at all. While this model hasn’t seen widespread use outside of the entertainment industry, it seems to have caught on for music and games. The Humble Indie Bundle, which has used this model since its inception in 2010, has generated over $19 million in revenue via 12 video game bundle sales. Its success has led others to follow in its footsteps, such as the Indie Royale and Indie Gala bundles.

Is the “PWYW” pricing model a flash in the pan, or will it grow in popularity? It shows no signs of slowing down, but only time will tell!

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