In general, you will find that a very small fraction of your user base constitutes a huge portion of support requests. A fraction of this fraction has entitlement issues and simultaneously believes you are trying to cheat them (dimestore psychology: because they know they'd cheat you if they could get away with it). Those are pathological users.
I have repeatedly found personally, and talked to other software developers, that increasing your price drives pathological users away and decreasing your price (particularly dramatically decreasing your price) draws them in like flies.
I do not think it is obviously true that selling 8 games for, e.g., $1 is better than not having that sale. If folks offered me the option of participating in a similar deal, I would decline. In addition to customers paying essentially nothing but requiring disproportionate support, I would be worried about auto-commoditizing my software offering. Why pay $30 when I've publicly demonstrated that I consider it to be worth less than a buck?
On a related topic: dangrover's comments about participating in Macheist are a great read, regardless of your feelings on the matter.
Can you explain to me how the developers of World of Goo, who field the support requests for WoG, are going to refund the bundle price despite a) having not actually received the bundle price and b) having no direct commercial relationship with the customer which would let them click the Refund button in Paypal?
You have a point regarding pathological users, but this promotion also draws in people who might have already played or heard of one or two of these games, and are willing to drop $30 or $40 to check out the remaining ones.
Also, even a cost of $1 incurs the friction of the transaction. That ought to turn away a significant percentage of the freeloaders, who probably paid 0 on pirate bay a long time ago anyway.
They're making less per game than they would charging a lousy buck on the appstore. Given all the ways they can make whole dollars, as in plural, per purchase I'd say it's not better than 0% at all.
This is free advertisement for indie developers, who have a very hard time getting publicity. Not only does it pay off in the short term (many of these are users who I can promise you would never have bought these games for anything more), it also pays off for the companies in the future. Wolfire, the creator of Lugaru, is currently working on the sequel, Overgrowth, which they have been funding exclusively by using preorders of the game. If someone buys Lugaru here and enjoys it, they may just preorder Overgrowth, which will net them more money.
It's the same with Frictional Games (creators of Penumbra) and the game that they're funding through preorders, Amnesia.
It seems like pretty expensive advertising actually - a normal sale makes them $x minus the ad or whatever that brought them the customer. Now $x is somewhere between $0 and $1.58 where it used to be up to $20 minus whatever advertising.
They're not making more they're just selling more.
World of Goo did the same thing a while back. They made an incredible amount of money and reached a large amount of people. Yes, many people paid 1 cent, but they still made more than they would have otherwise.
Not disputing they're going to make a lot of money from this, obviously when they wake up tomorrow morning they're each going to have tens of thousands more than they had when they woke up this morning. In that sense it "works".
But relative to other models the "pay what you want" is a terrible failure - any of those games could have singlehandedly grossed $30,000 to $60,000 from the number of sales they've had today, and that's going to lose a big chunk to advertising but still make them a lot more than $1.66 a sale.
