[lenazegher]

>It's relatively well accepted economics that product pricing tends toward the marginal value, which for software is near zero.

Do you perhaps mean the marginal cost? I don't see any reason that the marginal value to the consumer of software would be near-zero.

In any case, I'm not sure I agree - the marginal cost of AAA video games is near-zero, but the market price is $40-$60.

[drewcrawford]

> I don't see any reason that the marginal value to the consumer of software would be near-zero.

If you look at the top 10 paid apps in the iOS app store, 9/10 are games. In a sufficiently large market, games are interchangeable; I might equally prefer hundreds of games. As long as at least one of those games is free, the marginal value of some particular game to me is zero.

Now this may not be true for example when considering applications used for business, that provide perhaps a lot of value. But these represent just a tiny fraction of the overall market, which is mostly games and other mass-market, interchangeable software. It is large in absolute terms of course; that is how a great many developers make their living. But it is very small relative to the overall ecosystem, so it is fair to characterize most purchases as having essentially no marginal value.

[coolsunglasses]

The games on iOS are interchangeable because they're awful and barely register as 'games'.

[tux1968]

Yeah, thinko.

When I started out, accounting packages routinely sold for 20k or more. And they have been trending strongly toward zero ever since... As for the price of AAA video games, they do spend millions of dollars in production, so of course that will have to be recouped. Hard to compare that to an app that was created in 4 man months.

[emp_zealoth]

And even then the price I'd be willing to pay is less than 10 € (usually, thanks to steam) Does your 9 € app delivers 9 € of value to me? I honestly doubt that.

[ruswick]

That's because game pricing operates under the cartel model.