How can Origin balance offering competitive pricing for games while maintaining profitable relationships with publishers?

Introduction

Balancing competitive pricing for games while maintaining profitable relationships with publishers is a critical challenge for Origin. This trade-off involves navigating the delicate ecosystem of game distribution, user acquisition, and publisher satisfaction. I'll analyze this problem by examining the key stakeholders, metrics, and potential experiments to find an optimal solution.

Step 1

Clarifying Questions (3 minutes)

• Based on Origin's market position, I'm thinking this might be a response to increased competition. Could you provide more context on recent market shifts or competitor actions that are driving this focus?

Why it matters: Helps understand the urgency and external pressures Expected answer: Increased competition from other digital storefronts Impact on approach: Would influence the aggressiveness of pricing strategies

• Considering our revenue model, I assume we operate on a revenue-sharing basis with publishers. What's our current split, and how does it compare to industry standards?

Why it matters: Determines our flexibility in adjusting pricing Expected answer: 70/30 split in favor of publishers, industry standard Impact on approach: Would inform potential for negotiation on revenue share

• Looking at user behavior, I'm curious about price sensitivity in different game categories. Do we have data on how price changes affect purchase rates across genres or price points?

Why it matters: Helps identify where price adjustments would have the most impact Expected answer: Varying price elasticity across genres and price points Impact on approach: Would allow for targeted pricing strategies

• Regarding technical capabilities, can our current system support dynamic pricing or personalized discounts?

Why it matters: Determines the feasibility of sophisticated pricing strategies Expected answer: Limited current capabilities, but potential for development Impact on approach: Would influence the complexity of proposed solutions

• Considering resource allocation, do we have a dedicated pricing team or is this managed across multiple departments?

Why it matters: Affects our ability to implement and monitor complex pricing strategies Expected answer: Cross-functional team with limited dedicated resources Impact on approach: Would impact the scalability and maintenance of proposed solutions