Hellraiser
Arcane
If that were true, digital-only games should cost 1 euro.Games also are a weird market where niche products are expected to be priced solely based on the budget the developer blew (mostly) on art assets, rather than according to basic laws of supply and demand
You got me here, definitely a poor attempt on my side at explaining my point as indeed supply is infinite and one could think that it would indeed result in the 1 euro scenario, but that's under a very very basic (if not naive) understanding of the price-demand-supply relationship.
The price, supply and demand relationship is not a linear function, and in the particular case of easily "reproducible" (unit-wise) goods like games (technically there might be a variable per unit cost in the form of steam key fees) I would simplify the case to one of constant supply rather then infinite supply for modeling purposes and finding the market price equilibrium point. This is because again supply is non-factor and we don't really face any material differences from a cost perspective due to variable cost (per unit cost) being almost non-existent in a software development business, so it does not make sense to evaluate if we should produce 100 units or 50 units. Our concern is only how many units at what price the customers will buy to find the optimum. So not really supply and demand, just demand (and price).
Therefore what we get is a simplified function of just the price-demand relationship, and as a (hypothetical) business we need to decide a pricing where the revenue is optimal based on the price-demand function.
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