Steam is a digital games distribution and experience platform. Individuals can buy games online, have them downloaded to their computer and then play it through Steam, all without ever having to leave the computer to visit a store, or to insert a cd. At a conference the software President of Valve, the company that owns Steam, Gabe Newell suggested that games were priced too high. Some of the key points from the presentation include:

• It’s difficult to run tests on the effect of prices on demand in retail stores since prices can’t easily be changed.
• In a promotion where Steam reduced the price of Left 4 Dead by 50%, sales increased by 3,000%
• During a holiday period when Steam discounted third party titles sales increased by 300%
• Brick and mortar store sales were unaffected by the discount

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Source: Edge