Rock, Paper, Shotgun

World Of Goo Sale Offers Fascinating Results

Posted by John Walker on October 20th, 2009 at 12:58 pm.

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Tee hee.

As expected, 2D BOY have published details of their World Of Goo First Birthday experiment. Offering the game for whatever price people wanted to pay (previously it was $20), this meant people could get a copy for as little as $0.01 or as much as fifty million squillion space dollars. (I believe that’s the upper limit.) Originally this was intended to last for a week, but has now been extended to 25th October. And being a rather open sort they’ve announced how many copies they’ve sold so far, and indeed how much people have been paying, along with much more. It’s an unprecedented amount of detailed sales information. Its significance shouldn’t be underplayed.

In the last week there have been approximately 57,000 sales of the game. Which is a pretty stunning number. So let’s look at what people paid:

Don't be fooled.

Now it’s immediately important to very much hold onto your horses. When Radiohead experimented with this pricing model with In Rainbows it was ludicrously declared a failure by the press because most people paid nothing, despite Radiohead making a whacking great ton of cash for it. It’s that whacking great ton of cash that’s interesting here, rather than how many people nabbed it for free. So clearly, as was always expected, the largest number of people paid 1c for the game – the lowest amount they could. But this is already more complex than only people taking it for the lowest price possible.

There’s people who were getting a second copy. Many bought it on Wii or PC or Mac or Linux and wanted another version. Having already paid full price for it, this was their opportunity to get a version working on another platform without paying all over again. Of course, this isn’t going to account for many of the 16,852 who got it for almost-free. Huge numbers certainly are people taking advantage of getting a free game legitimately. So the question is, how many of these people would have bought it for the full price were this offer not available? I’m going to stick my head out and suggest a fairly small number. Why? Because the game already was available at full price for a year previously, and they didn’t get it. As the Steam sales show (below) there’s the possibility that some of them may well have paid full price if the same volume of advertising had occurred without a price drop, simply because they were reminded of its existence. But I doubt that accounts for many. The question that remains, and it’s one that I don’t think can be answered from the data gathered on this occasion, is how many of the one-centers would have bought it were it reduced to, say, $10, or $5. All we can say for sure is that these were 17,000 (minus those duplicating/replacing copies) who were unlikely to ever pay the $20.

I think it’s fascinating that then more than twice as many people chose to pay between one and two dollars than chose to pay between one cent and one dollar. In fact, almost as many people chose to pay in this third bracket as chose to get it for free. Clearly getting World of Goo for under two bucks is an insane bargain, but it’s still important to note that people are choosing to pay when they don’t have to. Not a significant amount at first glance. Until you multiply 15,797 by 2, and put a dollar sign in front of it, for a year old game. (Clearly minus a significant Paypal commission.)

Other interesting spikes appear at $5 and $10. It’s kind of cute that people default to recognisable round numbers. That twenty-three times more people paid $10 than $9 is, well, possibly useful knowledge for those picking pricing. People seem to prefer to pay a round number. This same pattern repeats at $15 and $20, with again thirty times more people paying $20 than $19.

I think another really significant number is that $20 point. That’s how much the game cost a year ago, and indeed a week ago. 306 people chose to pay that. That’s $6120 minus the Paypal cut, when it could have been absolutely zero. Although let’s not forget that 16,000 people paying between one and two bucks (minus cut) is a hell of a lot more money. (And 7347 at $5 is $36,735 of course – keep doing this maths and you can begin to see why 2D BOY describe it as a “huge success”.)

The other enormously interesting finding that 2D BOY have revealed is the effect the sale had elsewhere. It’s absolutely fascinating that the developers making their game available for all-but-free on their own site saw a 40% increase in Steam sales. They explain that it’s not unusual for a rise or fall in sales on Steam, week by week, of around 25%, but 40% is a significant anomaly, and is unlikely to be coincidental. The sheer volume of promotion their sale received presumably drove people who preferred a Steam-integrated copy to finally get around to buying it. And it’s important to note that 40% increase was following the previous week that had already shown a 25% increase. (Of course we don’t know what that’s an increase from. They may well have sold four copies, then five, then seven. Although perhaps that’s a little unlikely.) The effect even extended to the Wii where sales showed an above-normal increase of 9%

There’s tons more data to pore over, and you can even download all the responses people gave when asked to explain why they paid what they paid. Although as 2D BOY point out, this is skewed information, with the majority of those responding to questions being those who paid in the $5 bracket. Of those people, the most frequent explanation for price was that it was all the person could afford at that time. I do not think a more resounding piece of information can be garnered from all this than that statement. Oh, and 10% of those responding were people who had pirated it and now wanted to pay. Shout that out loud in the street. You can access all the data here.

But I think the punchline to all this is: 2D BOY made around $100,000 in a week. That’s $50,000 each for writing a blog post about a game they finished a year ago. By letting people pay whatever they wanted. That’s damned important information.

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232 Comments »

  1. Lambchops says:

    I still want my profanity pack!

    Not because i think it will be good (it would rather negate the charm of the game in my mind) but because it was promised. I pre ordered before any of this malarkey started and I’d quite like to get what I ordered! it’s just the principal of it.

    I’m glad this experiment went well for the guys.

  2. Andrew Doull says:

    Jimbo: Gotta say you seem pretty naive if you don’t think *real* businesses never give away product for free.

  3. dmason says:

    Just wanted to say thanks. I got the Windows version during last year’s Steam Holiday Sale for five bucks. I paid five more here to have the Mac and Linux versions.

    I just wanted you to know I was already looking to buy the game again at a discounted price. $20 Was just a bit high for me and this sale hit at the right time. I was extremely happy when this popped up because I could get the game and have the money go to the right people.

  4. [dandan] says:

    Well, I bought it once (for the 1st time) at $3 and, after playing it for a while bought it for $6 for my girlfriend’s birthday present. I don’t see myself as some kind of idealistic communist for buying the game for a low price or even that I was being taken advantage of buy the 2D Boy corporate monster… I wasn’t “paying what I could afford” or “paying what I thought it was worth” I just payed what I wanted to. Whether it catches on or not, I don’t care, I’m just happy I got a quality game at a bargain pirce. Which is how I imagine a good number of people feel.

  5. syllopsium says:

    It's also worth pointing out for those people pushing the 'it's just a business decision' angle, that although it's arguable that releasing it for any cost you're willing to pay is good for marketing, releasing the sales figures probably isn't..

    For anyone other than an indie games developer, people who want to be indie games developers or a minority of people interested in the industry, it's simply not of interest.

    • invisiblejesus says:

      Not only that, but let’s just say it’s nothing but a business decision. Given the amount of goodwill it’s generating and the amount of additional profit it seems to have generated, one has to deal with the apparent fact that sometimes doing right by the customer is a really, really good business decision. Shocking, I know, but one of the finest things about PC gaming right now is that a lot of these indie projects are giving us proof positive that putting the customer first can make you a ton of cash, provided you do it right. Not very fashionably cynical, I suppose, but the truth is the truth.

  6. Simon says:

    I already had a copy ($30 steam indie pack!) but I bought two more – one because my WoG on Steam works poorly in offline mode, and one for my brother. One at $1 and one at $5.

  7. Kat says:

    When I worked in retail I was told that $8.99 is the price where products go to die. People prefer to pay either $10 or $7 but not $8-9.

    Totally weird but it might explain why people are using round numbers.

    I bought it at $20 (before the sale). World of Goo is better than some games I’ve payed $100 for.

    • Wisq says:

      By “go to die”, you mean actual reduced sales? Interesting.

      The reason there are spikes at the round numbers in this case (presumably) is that people are specifically being asked to put in a number, and they’re going to pick something round.

      But if you’re the one setting the price, and you price a $10 game at $9, logic would say that the only thing you’re doing there is short-changing yourself by $1 per copy — not actually reducing sales.

      If sales are actually being reduced between $7 and $10, I think that’s pretty fascinating. I would tend to assume it’s because people judge a product by its price — and if it’s not at a well-established price point like $10, they assume they’re being ripped off for buying a $7 game at $9?

      Reminds me of how a lot of people don’t trust free software (as in FOSS) because they assume it can’t be as good as the “real” stuff.

  8. Jetsetlemming says:

    I wasn’t aware that there was a paypal fee on the purchases in this sale at all, since the payment form was set up as a “donation” link. I would’ve sent 30c extra to cover that on my own if I knew.

  9. If you want more graphs, I’ve made some:
    http://blog.mostlytigerproof.com/2009/10/21/radiohead-model-applied-to-world-of-goo/

    I’ve looked into what price point got the most revenue, which reasons people use for price selection at different price points, and also what kind of correlation there is between what people think it’s worth and what they actually paid.

    • Vinraith says:

      Interesting analysis. With respect to the “got it on another platform” question, you’re neglecting all the people that bought it on Steam, but took this opportunity to pick up Mac and Linux versions (or just a DRM-free version, for that matter).

  10. Monkeybreadman says:

    Do you get to play the game before you pay? I’m assuming you do

  11. Freddie says:

    Don’t forget that if you download on the wii, you have no choice but to pay the 1500 points for it, this will squew the figures slightly…

  12. Spliter says:

    I wish all the stores would learn from this and stop with the prices like 9.99 (WHAT THE HELL???)
    I’m happy to see Ron and Kyle having good sales :] they really deserve to get money for one of the best games made.

  13. You can download the demo version of it to check out what the gameplay is like. I didn’t try it too long before thinking my kids (ages 9-11) would like to try it out, and sprung for it for $5. I know that’s on the cheap side, but if the kids like it on the PC, we’ll get the WiiWare version as well.

  14. Hug_dealer says:

    Anonymous Coward said:
    ‘Society’ and ‘Business’ are not synonyms, you can’t pretend they are just to back up your pithy comment above. Well, you can if you like I suppose. If you want to elaborate on how paying exactly what the company said you could pay makes you a ‘leech on society’ then go ahead. It seems to me that any loss incurred from paying $0.01 will be entirely limited to the individual business that made the offer in the first place – not society as a whole.

    Why are you any happier about 2D Boy making a massive profit than any other developer? Why do we as a community feel the need to pretend a business taking $100k in one week was some kind of happy accident on their part? Why can’t we just say “Hey, manipulating the market to their advantage like that was pretty damn smart!”?

    because 2d is making loads of money by also helping the consumer. Rather than going the Infinity ward route and charging pc users $60 instead of the usual $50, in an attempt to make more money. Nothing wrong with making more money, unless you do it at the expense of the people who pay your bills. Devs need to remember they are nothing without thier customers.

    Honestly take your pick of the 2. Which one would you rather have?

  15. texas holdem games says:

    Got here and seen your stuff – way to go!

  16. Simon says:

    A lot of wrong conclusions made in this article. “People prefer to pay round numbers for stuff” – this doesn’t mean pricing a software at $10 rather than $9.99 is a good idea, it just means that when people are picking numbers, they tend to pick more “normal” or “common” numbers rather than weird numbers like $7 or $9. When you’re pricing a product, $9.99 still looks cheaper than $10, and it will still probably sell better at that price (at least, marketers seem to think so).

    The other thing is you refer to the buyers in the $1-$1.99 bracket as paying 2 dollars. (”Until you multiply 15,797 by 2, and put a dollar sign in front of it…”) In fact I would bet like 99% of them paid $1. Who’s going to pay $1.99?

  17. Chaely says:

    I saw this “deal” listed on at least two of those discount roundup blogs (dealhacker, sickdeals, etc) and the headlines read “blah blah video game PC – $.01″

    You only learned that you could pay any amount later on in the process, long after most people have already “caught on” that they could get away with paying next to nothing & resolved to do that.

    I think this was all in the way it was spread around the internet.

  18. Igor says:

    I wonder if they fully exhausted the market for the game this way. I.e. there are no more customers who will buy it

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