Can a "Pay What You Want" scheme ever drop the novelty factor and become a serious business model in this ever-changing ecosystem of video game development?
The In Rainbows release method was only successful because of the band behind it. Any other band wouldn't even have made a headline with it. It was also a pure experiment as their first release without a lable backing, because they went back to a more standard release, albeit with a media shut out, for the follow up. This would not work for games on a widespread basis, just like it wouldn't work for music. Certain "credible" names may get away with something similar to it, but most would definitely suffer the "free" fate, a lot more than Radiohead.
You'd get maybe one in ten people paying for your game, and they would probably pay a lot less than they would had you just set a price yourself. This model only works for indie developers who view their games as a message, one that they want to spread to as many people as possible regardless of profit.
I've seen some PC games try this kind of thing. For example, the Humble Indie Bundle where you pay what you want for a selection of games. If you pay over the average, you get more games. Could it work for consoles? Not sure.
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