How to make a living as a video games entrepreneur in a world without scarcity of copies?

How to make a living as a video games entrepreneur in a world without scarcity of copies?
[Aaeru] it all depends on your business model
[Aaeru] consider that the THQ bundle made $5 million by selling 1 cent bundles. http://www.joystiq.com/2012/12/12/humble-thq-bundle-ends-earns-5-million-from-885-000-bundles/
[Aaeru] the bundle price they were offering was for 1 cent
[Aaeru] that’s the actual price for the item
[Aaeru] yet the average was $5.76
[Aaeru] now where does this 5.76 come from?
[Aaeru] how is it possible?? asks the copyright-dogma minded
[Aaeru] the answer i believe, is patronage.
[Aaeru] the average was 5.76 per customer bcuz that is how much ppl are willing to pay to the artists
[Aaeru] that’s the market price
[Aaeru] In this scenario, the value comes from the patrons. The 5.76 exist, because the customer knows most of their money is going towards more video game creations. That is why it is worth 5.76. The folks at humble bundle recognizes this, and their ingenious innovation was ‘Transparency’. Of course there are lots of other innovations, but this is one of the primary ones.
[Aaeru] humble bundle shows us that even in the absence of scarcity of copies,
[Aaeru] u can still make money.
[Aaeru] handing out copies for free does not mean that there is no business model


[Aaeru] This is a very influential article from 2008 http://kk.org/thetechnium/archives/2008/01/better_than_fre.php
[Aaeru] so when u buy a game from Steam,
[Aaeru] u are not so much buying the game as you are buying the service surrounding the game
[Aaeru] u buy it for the convenience, the findability, the online play, the friends system, the community
[Aaeru] Steam is selling accessibility (i can DL the copy on another comp and play. i dont have to move files around myself)
[Aaeru] Steam has regular discounts. They are generous.
[Aaeru] Steam sells me immediacy (the download is so fast)
[Aaeru] Steam has achievements.
[Aaeru] if you create video games for a living, you are a video game entrepreneur
[Aaeru] It is the entrepreneur’s job to find a way to monetize on their own creation. This is not factory work. The money doesn’t just roll in, Okay? In entrepreneurship you must find ways to serve the customer in the way that they would like to be served, not in the way that you would like to serve them.
[Aaeru] u have to find a way to serve your customer in a world where every one of your customers become your competitor as soon as you’ve sold to them (everyone with an internet is a printshop). It is a world where the industrial activity of reproduction has become infinitely cheap. And because basic economics tells us that price of goods tend towards marginal costs given enough time, therefore the price of paying someone to reproduce you a copy right now, has reached $0.00. Therefore, don’t sell reproduction. No1 wants that.
[Aaeru] It is not enough to just serve them. You must serve them in a way such that they will be willing to let go of their money despite the free copies.
[Aaeru] in fact Gabe newell said he doesnt consider piracy a problem anymore
[Aaeru] bcuz he has Outcompeted piracy.

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