February 13th, 2010 
Brad McGraw 
Last year Valve Software President Gabe Newell gave a speech at the annual DICE summit, where he explained that by cutting prices they were able to make more profit than if they kept titles at full price.
This year Paradox Interactive CEO Fredrik Wester said the same thing in an exclusive interview to Netopia (translated version here). Gamersgate saw an increase of 5500% in sales when they reduced the prices 75%.
The successful product launches, sales have been significantly strengthened by temporarily reducing the price within three months from launch, for example over a weekend, with up to 75%. Our test case has shown sales increases from 1500 to 5500%.
The basic theory is the more you sell, even with a lesser profit for each game, you’ll end up making more money. Both Steam and Gamersgate have proven this is true when applied to video games. They also noted that even after the sales were over there was an increase in game sales.
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