Price differentiation in video games: A closer look at the free-to-play segment

Companies which offer 'free-to-play' video games, have to optimize
the in-game-shop in order to generate revenues. Price differentiation
is one possibility to optimize the profitability of the game. For exam-
ple, Fortnite -- the most successful video game in terms of revenues
-- offers uniforms ('skins') at four different prices. This attracts dif-
ferent segments of the market. We use a microeconomic approach in
order to highlight the implications of price differentiation for the profit
maximization problem.