Dynamic Virtual Item Pricing System
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Solution Overview
Problem
Operators of virtual environments and online games fail to maximize revenue from virtual item sales by not leveraging the natural supply and demand economic system, as they set fixed user costs regardless of market conditions.
Innovation Solution
Implementing a system that automatically adjusts the user cost of virtual items based on demand, using a server configuration with modules for purchase monitoring, cost adjustment, and revenue monitoring to dynamically set prices, thereby optimizing revenue generation without administrator intervention.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If fixed user costs are set by administrators, then operational simplicity is maintained, but revenue maximization is compromised due to inability to leverage supply and demand dynamics
Solution Approach 1:
The patent implements dynamic pricing by automatically adjusting user costs based on real-time demand metrics. The system transitions from static administrator-set prices to dynamic market-responsive prices, allowing costs to fluctuate according to supply and demand conditions without manual intervention.
Solution Approach 2:
The system incorporates feedback mechanisms that continuously monitor demand for virtual items and automatically adjust pricing accordingly. This closed-loop feedback system enables the platform to respond to market conditions in real-time, optimizing revenue by increasing prices when demand is high and decreasing them when demand is low.
2Productivity
If administrator intervention is used to set prices, then market conditions are not fully utilized, but system simplicity is maintained
Solution Approach 1:
The system enables self-service pricing where the platform automatically determines optimal prices based on demand data without requiring administrator intervention. The automated system monitors market conditions and adjusts pricing independently, freeing administrators from manual price-setting tasks while maximizing revenue optimization.
3Productivity
If dynamic pricing is implemented, then revenue maximization is achieved through supply and demand leverage, but system complexity increases
Solution Approach 1:
The patent replaces manual administrator pricing decisions with an automated computational system that uses algorithms to determine optimal prices. This substitution of mechanical human decision-making with automated electronic pricing mechanisms enables dynamic adjustment without proportionally increasing operational complexity.
Data Source
AI summary
A virtual space is provided to users via client computing devices where the user cost associated with purchasable virtual items may be adjusted. A game shop interface may be presented to users, comprising offers to purchase sets of one or more virtual items to the user. The associated user cost for the one or more sets of virtual items may be adjusted based upon a determination that the rate of purchase of and/or the revenue generated from the virtual items is more than a specified threshold from the average rate of purchase and/or average revenue generation rate.