Unless a video game is on sale, you probably expect to pay the same as anyone else for a brand-new game. But it seems that Sony is testing the waters for a system on the PlayStation Store that will display varying prices for the same product to different people. The PlayStation maker also appears to be testing personalized sales that will show discounts tailored to the user viewing them.
Dynamic pricing is a revenue model where a company will switch up the cost of an item for different users. These changes are dependent on a variety of factors, like purchase history data, location, inventory, demand, time of day, weather, and income level. Though controversial, dynamic pricing has seen a surge in a variety of industries, from grocery stores to the housing market. The price discrepancies can have a wide range, or they can be minor depending on the industry. But even if it is a matter of a few cents, companies who use pricing models like this bank on the long-term benefits of extracting more money from a wide pool of customers. Dynamic pricing does not inherently mean that a consumer will pay more — sometimes, the cost tweak actually creates a bargain.
In the case of the PlayStation Store, a website called PS Prices has been tracking the numbers across Sony’s digital platform. In an update on its research, the website said it had “detected unusual offer structures containing experiment identifiers” while monitoring the PlayStation Store’s API (Application Programming Interface) responses.
Image: Sony/Santa Monica Studio via Polygon
By keeping track of the testing identifiers, the proprietors found that Sony has been A/B testing prices for a number of games, including first-party titles like God of War Ragnarök and The Last of Us Part 2. The program allegedly includes 139 different games, and has been running across 68 regions. According to the price tracking website, price differences can fall anywhere between 5.3% to 17.9%. Notably, the test only included price decreases, not price hikes. The experiment has also not occurred within the United States.
Sony did not immediately respond to a request for comment regarding PS Prices’ reporting.
In addition to dynamic pricing, the PlayStation Store has also been found to display personalized discounts for users. One example cited by PS Prices is Helldivers 2, where the extraction shooter appeared with two different sale prices. Some users apparently saw the normal 25% discount, while others were treated to a 56% discount. PS Prices notes that the experiment has been running for at least three months. Late last year, Sony also rolled out a new PS5 feature that allows users to see what the lowest price for any given title has been within the last 30 days. Ostensibly, users could use this information to determine if purchasing the game feels worth it.
Still, PlayStation fans seem wary of the pricing model. While the test has only saved users money thus far, the fear is that it could be used to squeeze more money from some users. Sony’s CEO has told investors that the publisher intends to mitigate slowing PS5 hardware sales by finding ways to further monetize the existing PS5 base. Dynamic pricing could arguably be used to fulfill that mission. At the same time, margins on digital sales are higher than physical games. A good deal could persuade a user who would otherwise not spend any money at all, which could benefit Sony without having to raise software prices for everyone.
