"Dynamic Pricing Strategies: Do You Want More Revenue, or More Engagement?" is a new, featured Gamasutra post by our CEO Bill Grosso, explaining the two most important strategies for mobile game developers:
[There's] some confusion around two varieties of dynamic pricing in mobile games: The price of IAPs (or real money transactions, as MMO devs call them), versus the price of in-game goods bought using virtual currency. Both are valuable tools for game developers, but they have two very different primary use cases. Very briefly, we put them this way:
For increasing revenue, developers should make IAP price adjustments to virtual currency (i.e, coins, gold bars, etc.), but generally speaking, not for virtual goods (powerful weapons, armor, etc). For increasing user engagement, we recommend making price adjustments to what players can buy with that virtual currency -- i.e., virtual goods.