Yet another Steam Sale but why?

At work today I had convinced myself that my next purchase was going to be Burnout paradise. However all thoughts of this went it disarray when discovering Steam has got yet another fire sale.

I already over purchased at the Thanksgiving sale buying Mirrors Edge,Majesty 2, Dead space and the complete THQ pack numbering 20+ games and add ons. For me that will be that's a years gaming only spending 2 weeks on each title. I am staring to reach games saturation point yet only spent a fraction on what I spent before buying 10 titles per year. Therefore the question I am asking is why are they doing this?

Possible explanations...

1. They make more money on games near the end of there life cycle. The cost of computer games is front loaded with the exception of packaging and marketing and retail the majority of the costs of making a computer game is prior to release. As digital games have no packaging and all marketing costs and retail costs are met by the digital provider in theory more units sold at whatever price mean greater profits. If a game its several years old you might as sell it any any cost rather than any cost at all. True that might explain selected reductions not the whole catalogue changes that of occurred in this steam sale. Also Stalker at 90% off an already discounted does not make sense unless the sales increases 10 fold.
2. Using a game as a lost leader. The next Stalker is being released soon in the States . Could selling at such a low price encourage you to pay full price for the sequel. Or would you wait until the next sale?
3. Price War with other Digital download sites. Is Steam having a sale to spoil sales on other sites (e.g. D2D 31days of Christmas sale)?

I suppose for us in the short term cheaper games is a better thing. However how many people like me are starting to avoid full price items knowing they probably be reduced at a later date? Are the games companies selling enough cheap games to replace the lost sales of full price games?

As for Burnout Paradise I am delaying my purchase until after Christmas. I'm betting it will be in the 1 only day sales

From their other sales they have data on how well games have sold during sales, if during non sale times you sold 10 copies at full price and during the sale you sell 1000 copies for a fraction of the price, they make more money and people that would have never bought the games have now paid them money. Seriously when a game is $5/10 how much of a thought is it to say ooh i'll buy that even with my fleeting passing interest in the game because it is on super sale.

However how many people like me are starting to avoid full price items knowing they probably be reduced at a later date?dison_uk

According to Valve, not many. They say that baseline sales actually increase after the sale because it "energizes" the player base.

[QUOTE="dison_uk"]However how many people like me are starting to avoid full price items knowing they probably be reduced at a later date?UpInFlames

According to Valve, not many. They say that baseline sales actually increase after the sale because it "energizes" the player base.

[QUOTE="dison_uk"]However how many people like me are starting to avoid full price items knowing they probably be reduced at a later date?UpInFlames

According to Valve, not many. They say that baseline sales actually increase after the sale because it "energizes" the player base.

Just imagine you picked up this schweet deal and started playing this game that you wouldn't have played now you are telling your friend about this game but the deal is over, friend buys it anyways at 19.99 29.99, whatever price so they can play with you cause they were silly and didn't buy it when you told them about the awesome deal.

Because its very convenient. people high prices because of that, not because they want to. DDs know that so they take advantage by giving sales like this. crunch time of the holiday season. scenario start:

your friend is a PC gamer and you don't know what to get him. OH! a sale on Dawn of War II? he was talking about this a few days ago. i think il gift it to him. Oh, but this is a good price. i think il get it for myself too. Oh? Mirrors edge also? well, can't go wrong with 5 dollars....

scenario end.

[QUOTE="dison_uk"]However how many people like me are starting to avoid full price items knowing they probably be reduced at a later date?UpInFlames

According to Valve, not many. They say that baseline sales actually increase after the sale because it "energizes" the player base.

Its to make more money and to give customers a bargain.

Yeah, the margins on downloadable games are large enough that they can still sell at low prices and make money. No manufacturing costs, no shipping costs, no middlemen, just some server space and bandwidth. It's a great way to boost sales for older games. And I'm sure Stalker's sales did jump more than ten times, as it goes from a $20 "Yeah, I don't really want to buy that," to a $2 "Why shouldn't I buy that?" purchase.DJ_Lae

Stalker sale is promotion sale for Cal of Pripyat

as for sale itself one word -- Proffffitsssssssssssssss

Valve has said in the past that a lot of steam purcheses are cumpalsive. Meaning that people buy them because they are put on sale for extreamly low prices, and not because they neccesarily want them.

Either way, Im not complaining.

They have always done this! I remember getting Bioshock for .99 cents.