By using this site, you agree to our Privacy Policy and our Terms of Use. Close
Jay520 said:

I don't think you understand his logic. Imagine this scenario:

Let's say Bob has a severe medical condition, like violent diarrhea or something. So he goes to the pharmacy to get some pills. When he gets to the pharmacist, he is offered two options for pills: (1) Brand A, which is fairly trusted and costs about $50; and then there's (2) Brand B, which is free - no strings attached. If Bob is like like any sane person (and can afford it), he will buy the $50 pills nine times out of ten. There's no way he's taking the free pills. Something has to be wrong with them. Sure, they're free, but they could lead to worse diarrhea. The mere fact that they're free means they're worthless. So most people buy brand A. 

Now let's say the scenario is changed a bit. Let's say Bob is offered (1) Brand A, which is fairly trusted and costs about $50; and then there's (2) Brand B, which is slightly less trusted, but costs $30. Cool, a $20 dollar deal! Here, most people choose Brand B, because they believe they are getting an equal product at a lesser price; whereas with the free pills, they were afraid of worst diarrhea (or in PSN's case, stealing credit card info). Of course, this is an oversimplification, but the principle is still the same. The amount of customers gained from increasing the apparent value of the product will overwhelm the amount of customers lost who can't afford it.

This is actually a recorded fact in economics. The same applies to PSN. You will see the effect of this soon.


Its really not the same. Health issues represent a different buying behaviour than a lux item, wich is what we can consider a console and games. 

Again the example is not good when you say the second pill makes his "illness" worse when that isnt the case at all. PSN is just as good as Xbox live. It just doesnt have the cross-game chat. Again, all i see is an irrational behaviour. I understand what you mean, but the example is skewed away from context.

If you try with a similar lux item, for example, it would be a comparable situation.

Lets try with a new game purchase. You can buy a new game, A, for 50 dollars or download one for free, B. The games are similar. What do you think happens? Will more people just download the free game or will pay 50 for a similar one. Obviously the free one.

The problem at the end of the day is the perception of value. Some people dont think theres enough value and some think there is. Still, i dont see how adding a new "tax" to your system is gonna drive up sales. That just doesnt make any sense.