The Psychology Of Games: Xbox Game Room's Dummy Pricing (Not for Dummies)

Psychologist and gamer Jamie Madigan discusses the pricing for Microsoft and Krome's Game Room for the Xbox 360, which launches this week, analyzing why seemingly illogical pricing can pay off if pitched correctly.

JM: Microsoft recently announced that they were augmenting their Xbox Live and Games for Windows services with something called "Game Room," which would allow you to buy and/or play classic arcade games like Centipede, Space Invaders, and the like.

Basically, it'll be just like when we used to hang out at the neighborhood arcade, only with fewer cigarette burns on the machines and no attendants pretending they can't hear you while they listen to their Walkman in the back office. Or maybe not; I've never been to your place.

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