Wednesday, May 9, 2007

How Are Video Game Prices Determined?

This blog will contain lots of data about prices and you might wonder how do I actually get the data and can it be trusted as accurate. The prices are based upon a propriatery equation I have developed that takes into account actual prices gathered from Amazon, Half, Ebay, and JJGames. I can’t tell you the exact equation because it is a trade secret, but I use it at to determine our prices so I definitely believe it to be THE price.

I have daily prices for thousands of games using this equation, but most of the blog posts and graphs will use 7-day averages instead of the daily prices. I do this because daily prices for video game are really volatile and a 7-day moving average gives a better indication of where the prices are going. Below is an example for daily prices vs the 7-day moving average for Super Mario 64.

When I show charts in future blog posts, the price will be the 7-day moving average NOT the daily price. I think this helps a lot with comparisons between different video games and allows easier discussion on trends, which is what this blog is all about.


mndrix said...

The trends are much more apparent with the 7-day average. I was surprised by the price spike in February.

JJ Hendricks said...

I am not sure what caused the price spike in February. My next blog will be about price changes for all games, so we will see if Feb. prices rise in general or if Super Mario 64 was an anomoly.

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