You might think that big temporary price cuts on games via download services could hurt revenues when they go back up to their regular prices. However, Valve has some evidence that the reverse is actually true and that temporary price cuts on games could serve to actually improve revenues in the long run.

Gamasutra reports that during a speech at the Montreal International Game Summit, Valve's director of business development Jason Holtman stated that, "in a connected market, you can shift prices up and down, and people don't care." As evidence he cited the quick two hour sale they held last month for the multiplayer shooter Team Fortress 2 via Steam, which got its price cut down to just $2.49. Sales went way up during those brief time periods, they also stayed at higher levels after it was over.

Furthermore, retail sales for games are unaffected with the digital download prices. Holtman states that there was a price cut on Steam for Left 4 Dead back in February and, "retail [sales] were unaffected."