If I were Microsoft…

I’d be running sales on XBLA games to small cross-sections of the XBL community, and using the returns on that to judge the actual price elasticity of the game in the XBox marketplace. If the sample shows that you make more money per XBLA member with a lower price, then you lower the price for everybody. If not, then keep the price high until the returns are in.

I’d be running them on demand; you can run hundreds of these market experiments at a time, and they need only last maybe a few days or a week.

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