Console Game Prices Going Up?
The Bungi writes "MSNBC is running a story that I found interesting in light of the previous article here on Slashdot predicting hardware prices will likely fall. The MSNBC piece is quoting analysts that think software prices might go up by about $10 for a new title. The reasons? Among others, more complex games and anti-piracy measures built into the media. Get ready for $60 Halo II."
That's why I've never bought the argument that the reason software (including games) is so expensive is because of piracy. Supposedly, no one can really copy a Gamecube game and play it on a Gamecube (at least yet), but the prices for the games are the same as the XBox, which supposedly has a piracy problem and PS2.
Forget the whales - save the babies.
GTRacer
- Not the One
Defending IP by destroying access to it? That makes sense, RIAA/MPAA. Go to the corner until you can play nice!
The last console game I bought only cost 50 cents.
Of course, it was for my Atari 2600, and prices have fallen a bit...
I think we know that nobody on slashdot cares about the price of the games. We only care about hardware costs.
There's no need to buy games, because we're all modding game consoles to run linux to record from the webcams hidden in our mothers' basements.
You should see my hidden video bytetage -- I'm way too 1337 to write the antiquated "footage" -- of last week's D&D game!
Opinions on the Twiddler2 hand-held keyboard?
The reasons? Among others, more complex games and anti-piracy measures built into the media
Anti-piracy measures should increase revenue, not decrease it; otherwise, why use them at all? If anything, the prices should come down as a result of less piracy (I mean, isn't piracy forcing companies to raise prices? That's what I've always been told).
As for the increased complexity of games, shouldn't it - at least in part - be offset by code reuse? Developing a similar game or a sequel should be much easier than the initial title.
Remember how a few years ago every game had full motion video? Now that you can get decent results with real-time rendering, we don't need all these real-life actors, just voice talent.
I would think that as we move along to the future hardware will stop being so different and it will just be a matter of aesthetics or just which brand you want to back. Software will be the main difference. I would say raise the software prices IF hardware prices go down. People put a big chunk down for a high end PC and then they buy one or two games a year because they are still paying off their PC. Make a high end PC around $500 and games around $60 and then people will buy some more games for their cheaper nicer hardware.
Where you run into problems though is copy protection. People will just pirate that $60 game.
So in order to reverse it then charge more for hardware and infinitely less for software. I guess we will see how it turns out.
Courage is fear holding on a minute longer. George Patton
If anti-piracy technologies are supposed to make games harder to pirate, then there should be less priacy. If there's less priacy, then they should sell mores copies of protected software. Why should I pay extra for something that should already make them more money?
Of course, all of that was based on the assumption that piracy costs the industry money.
would be to LOWER the price of the games.
Says towards the bottom of the article that only about 10% of the games are big hits. IOW, you pay more for the top tier games because of all of the shovelware that comes out.
The price will go up until the soccer moms stop buying titles for their little brats.
Jesus was all right but his disciples were thick and ordinary. -John Lennon
I remember paying $40 for Apple II games in the 80s. Inflation must certainly take its toll on game prices eventually, and I am all for supporting game developers. What I am not for is supporting the near-extortion practices of game publishers (coughmicrosoftcough) who force developers to get games out the door prematurely. That, I believe, is why we see games with so much less spit and polish than we used to. The first time I saw a game seg fault on the Xbox, I raged. Because of that, I am willing to pay $60 for a Blizzard game that I know will be clean and well-concieved. And for software which is belted out before a Christmas deadline so that a trillion dollar multinational corporation can recoup losses on the system itself, I'll pay nothing at all...
Among others, more complex games and anti-piracy measures built into the media.
We need to charge this much for games because so many are pirated. Now we need to charge you more because we're trying to negate that. I'd like to call them idiots but we consumers are the ones who keep falling for this stuff and teaching them that they can get away with it.
The IRS could learn something here. *fears*
This is complete and utter bullshit. While I can sympathize with the fact that it costs more to develop a game these days, I don't see why that should affect the retail price in all cases. Maybe there companies that are spending upwards to $10 million to develop a game should ensure that the game is good so that they can recover their investment.
The story mentions Enter the Matrix, which is a pretty crappy game. It seems that Shiny spent $20 million developing it. All I can say is "Boo Hoo." The game is still selling very well (over a million units in the U.S. alone), but it would have sold even more if the game was any good.
I know that games and movies are vastly different, but consider this: I pay $10 to see a new movie release, regardless of the cost of production. Why should it be any different for games?
If anything, game prices have to come down, so that Joe Sixpack can pick one up on a whim. $50 is a lot of money to plonk down for a game that might just suck enormous ass. Game prices need to come down for gaming to truly become a mainstream form of entertainment.
Games are already overpriced if you really take a look. With multiple consoles pulling players in multiple directions, a handheld system to accompany each of them (almost), and companies fluctuating in and out of existence on nearly a monthly basis, I smell a market crash coming...
If someone releases a new ET game then it's a sure sign the end is near...
Now if you'll excuse me, I have some skulking around to do in Thief Gold...at a 1024x768 resolution!
I have read a few insightful and interesting comments in reply to this article that are based on common sense. Mainly this...
That makes complete sense if of course that was the real reason. I mean, come on, of course piracy wasn't the real reason behind high prices - duh! That is nothing but some marketing/PR spin to justify those high prices.
I have another theory which I think also relies on common sense, but looks at it from a money-snagging business ploy that I would implement if I was in that industry. To me it makes perfect (business) sense to raise prices while increasing the level of security / anti-pirate technology. People are forced to pay the hiked up prices because it is now even more difficult to circumvent the protections in place, plus you have the added benefit of protection against circumvention thanks to the unbelievably awful DMCA.
I mean you're all set...
There is no missing middle step, that's all it takes.
Raise prices when people are forced to pay them and have less alternative options. Does this make the consumer happy? Of course not! But it sure does make the industry happy to see the extra money come in, because no matter how idealistic people like try be in saying, "That's the final straw, I'm not supporting this industry any more. They won't get my money!" - which will work for a small minority of people, but won't for the majority of people who will fork out more cash for the new games. The other unfortunate thing is that many games of late seem to be rushed to completion before they're ready and don't even deserve the higher prices on their own merit.
Just my $.02
Are you bovilexic? Moo!
I remember paying $70 for Phantasy Star IV, and $60 for any RPG on the SNES. $50 prices on games is not really that bad nowadays, considering inflation and all.
On the otherhand, there is Nintendo, who just lowered their fees for 3rd publishers. Sega is releasing alot of their exclusive GameCube games, for $40 (Viewtiful Joe, and Billy and the Giant Egg, come to mind). Now this is a great price for some kickass games (the demos rocked). $40 for a brand new Sega exclusive game.
Hell yea.
US Console Price Drops Widely Rumored : Gamecube $99, PS2 $149, XBox $149
Nintendo Bundles GBA Adaptor With Gamecube : Gamecube $149
Sony's Pre-E3 Press Briefing Summarized : PS2 $179
Microsoft Announces Price Cut For Xbox : XBox $179
Analyst Predicts Further Console Price Cuts : ???
Capcom, Sega Drop Gamecube Software Prices : games $40
Console Game Prices Going Up? : games $60
Is anyone else getting confused? Perhaps the analysts don't know what they are talking about.
$60? Count yourselves lucky. Game (UK retail chain) and Electronics Boutique (the UK retail chain bought out by Game, not the US one) charge 65 to 70 EUR here. Even PC games are up to 50 EUR a go :(
(Even second hand games are 45-50 EUR)
Fortunately there are some independent shops which don't charge such stupid prices.
Here in NZ, games are typically $100-$120 for most titles. Resident Evil for the Gamecube was going for $139.95 when it came out. Gaming isn't a cheap hobby, unfortunately...
1980s and early 1990s games: box contained a game, a thick manual, and usually some extras, such as a cloth map, a booklet with background informations or cut-outs of spaceships (Wing Commander series). Price per game: $50
2001-03 games: Box, which is much smaller (in the case of Europeans a DVD box even for PC games) contains a game and a thin booklet with installation instructions. The manual is on the CD; no extras. Price: $50.
Prices of games have already gone up. What I described, however, is only the most visible indication. You also have games that start at $60 (Neverwinter Nights, Warcraft III), or "special editions" that can cost as much as $80 and have box contents roughly equal to those of games that cost $50 ten years ago. In addition, the dollar spent per hour of gameplay is increasing all the time. Where you spent anywhere between 25 and 50 cents per hour of gameplay ten to fifteen years ago, you now spend up to $5 per hour of gameplay on titles like Command & Conquer: Renegade and Unreal II. That means that where you spent maybe $50 per month on games, you spend the same amount per week these days, or even more. Games are already enormously expensive, compared to a decade ago, but people didn't notice. The publishers used the ages-old strategy to decrease the amount of sold, while keeping the price stable, and it worked. Unfortunately for them, there is very little left to cut away from games, and so they have to resort to increasing the prices.
Actually, It make more sense with the two articles in mind.
Could it be a move a la "printer (a.k.a. razor) business model"? Give the hardware, then make it back on the software (using royalties).
> "Get ready for $60 Halo II."
Yeah, and get ready for me not buying it. The price of console games has been getting awful! Personally, I just live a year or two behind the new release schedule, and get games out of the bargain/used section for much cheaper.
Damn, there's some stupid crap that makes up the high prices in games. Actually, anyone got a cute little pie-chart showing where the money goes when you buy a, say, PS2 game? I bet marketing is at least a 3rd.
Honestly, though, I had heard (about six months ago, but still) that Sony was going to announce a $39.99 price point for the PS2 games and that people were hoping M$ and Nintendo would follow. Has anyone heard more about that?
It's a sad day when we're getting video game news from MSNBC. It seems like anybody with half a credential could send out a news release "predicting" a price change and some news outlet would report it. Don't believe the hype until Sony/Big N/MS say something.
It's not stupid. It's advanced.
MY analysis, were I so bold as to make one, would including looking at a similar industry and the trends there: VHS/DVD sales. Specifically, when pre-recorded VHS movies hit the market, they were sold entirely for the purpose of rental. The prices would start at around $50 and peak at around $100 per copy. Once enough people had VCRs and production costs for VHS tapes had dropped enough, movie studios took a look at the market and wondered if they could actually get people to BUY the movies. ET debuts at $20 (discounted soon after to $15) and just about everybody ran out and got a copy. Seeing that they had something there, everyone started jumping on the bandwagon. By the time DVDs started their meteoric rise BRAND NEW VHS movies could be had for $10-15 a piece and bargain bins were filled with videos between $5-10 each. DVD has followed suit, though much faster because of the incredibly rapid adoption of the format by consumers.
Even more on point, one could look at the prices of Atari 2600 games. Those prices dropped significantly once the 2600 reached a critical mass where just about everybody had one - and those were on cartridges which are more expensive to produce than DVDs. (Prices also fell when the video game market went to pot but we'll ignore that here.)
If we then look at video games, it's clear that a similar result is on the horizon. While it's unlikely that top-flight games are going to drop as low as $20 a piece (they don't get box office revenues like movies do), the number of consoles in use today is so much larger than it ever has been that even a bad PS2 game can sell 50,000 units ($2.5 million retail) in the US and great games can sell into the millions. If console makers ever manage to understand the potential benefits, they could all change their royalty structures (as Nintendo recently has) and a $10 price drop across the board could end up spurring even more sales. A $10 price increase, on the other hand, will likely show an even more significant negative effect.
Obviously, I'm no market analyst so you can take my thoughts and words with a grain of salt. But I certainly wouldn't give any more weight to the ideas of a single market analyst (and a writer who was probably desperate for a story and happened to see a press release) who, unless he has access to actual top executives who are TELLING HIM that prices are going to go up, is also just talking out his ass.
If prices do happen to go up $10, I expect that they'll drop right back down once they see what I expect will be a chilling result on sell-through.
Then they should increase the profit margins before they increase prices if they're in that much trouble. Selling the games direct mail-order over the internet:
$50 - $5 media & pack - $5 shipping = $40 income.
They could experiment with lower prices as well - and find out what price point they become more popular.
Remember when the SegaCD came out, and everyone kept saying how CD's were cheaper to make than big bulky cartridges, so moving to an all-CD platform would be cheaper! After all, it costs a few pennies to stamp a CD if you do a huge production run.
What the neglected to mention is that the companies completely realized this, and took the "savings" for themselves, along with any extra profits they could take.
I can fully understand charging more because it takes more to make the game (I mean hell, Phantasy Star Online sure took a lot more to make than Pitfall or Super Mario I'm sure), but saying that price hikes will be due to piracy is just a red herring to throw people off of the fact that companies just want to make more money without having to make better games.
I'm surprised the RIAA hasn't tried this yet.
-"One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man." -EH
One more crippling bombshell hit the already beleaguered *BSD community when IDC confirmed that *BSD market share has dropped yet again, now down to less than a fraction of 1 percent of all servers. Coming on the heels of a recent Netcraft survey which plainly states that *BSD has lost more market share, this news serves to reinforce what we've known all along. *BSD is collapsing in complete disarray, as fittingly exemplified by failing dead last in the recent Sys Admin comprehensive networking test.
You don't need to be a Kreskin to predict *BSD's future. The hand writing is on the wall: *BSD faces a bleak future. In fact there won't be any future at all for *BSD because *BSD is dying. Things are looking very bad for *BSD. As many of us are already aware, *BSD continues to lose market share. Red ink flows like a river of blood.
FreeBSD is the most endangered of them all, having lost 93% of its core developers. The sudden and unpleasant departures of long time FreeBSD developers Jordan Hubbard and Mike Smith only serve to underscore the point more clearly. There can no longer be any doubt: FreeBSD is dying.
Let's keep to the facts and look at the numbers.
OpenBSD leader Theo states that there are 7000 users of OpenBSD. How many users of NetBSD are there? Let's see. The number of OpenBSD versus NetBSD posts on Usenet is roughly in ratio of 5 to 1. Therefore there are about 7000/5 = 1400 NetBSD users. BSD/OS posts on Usenet are about half of the volume of NetBSD posts. Therefore there are about 700 users of BSD/OS. A recent article put FreeBSD at about 80 percent of the *BSD market. Therefore there are (7000+1400+700)*4 = 36400 FreeBSD users. This is consistent with the number of FreeBSD Usenet posts.
Due to the troubles of Walnut Creek, abysmal sales and so on, FreeBSD went out of business and was taken over by BSDI who sell another troubled OS. Now BSDI is also dead, its corpse turned over to yet another charnel house.
All major surveys show that *BSD has steadily declined in market share. *BSD is very sick and its long term survival prospects are very dim. If *BSD is to survive at all it will be among OS dilettante dabblers. *BSD continues to decay. Nothing short of a miracle could save it at this point in time. For all practical purposes, *BSD is dead.
Fact: *BSD is dying
The price level is the same in Sweden.
Is this the general rule or an exception? What do console games cost in the rest of Europe?
Why are we getting shafted worse than the US and asian markets?
"First lesson," Jon said. "Stick them with the pointy end."
The other advantage to waiting a year or two to play games is that you don't need to spend a fortune on bleeding-edge hardware. By the time the game drops below the $20 point, it'll run smoothly on hardware that's a couple of years old.
I've just gotten into Diablo II and Fallout myself... Then I have Zork Grand Inquisitor to play.
this article actually said that no one would complain if top end games jumped up $10 in price. I SURE AS HELL WOULD! they also said no one cared that socom (misspelled in the article as "socum") navy seals was retailing for $60. i dont know about anyone else, but i wasnt happy about that! however, i accepted it b/c the box contained a headset for the game, which is useful and i would accept paying an extra $10 for that. also, as someone else above me pointed out, most new games have smaller packages and come with less stuff then games used to, thereby decreasing their production costs. socom, if you all remember, game in a significantly different package thany any other ps2 game i can think of. that also would increase the cost a little. the article even said "people dont care about prices going up, game developers do." WHAT?! PEOPLE DONT CARE?! right, we would willingly shell out more money for no reason, but its the wonderful developers (read as "distributors", since i doubt the people who litterally develope the games have any say as to how much they cost) who are so good hearted that they want to keep prices down for us. RIIIIIGHHTTT. no one wants to pay more! NO ONE! who the hell did this article interview? 10 year old boys who dont pay for their own games anyway?! "sure, id pay an extra bajillion dollars for the new pokemon game. my mommy buys it for me anyway." ::as the child starts to pick his nose::
Remember kids, playing a game that you didn't pay for at your friends house is STEALING!
Buy Steampunk Clothing Online!
"more complex games and anti-piracy measures built into the media. Get ready for $60 Halo II."
What is this guy talking about? Seriously, there are no new anti-piracy techniques on Halo 2, XBOX games all use the same standard that hasn't even been cracked yet. Citing piracy as a reason for price hike is just moronic, as it will driv3 the pirates to want to pirate the game even more, by principle or just not wanting to pay the extra $10. Most consoles don't have much of a problem with piracy anyways, whereas the last generation you could just use swap disc techniques or a simple booter on the disc, you need a modchip on the xbox or ps2, and you can't even do it with gamecube. On the PC, piracy will always be rampant as long as people want games for free, and they just have to face it.
As for complexity of games, Halo is a lot more complex than an atari game, but they still cost the same price when they came out.
It's not that big of a deal. If they do go through with the increase in prices, it's not going to kill us. Hey, if Halo 2 is really that good, it just might be worth $60 for it. To somewhat counter this price increase, I have a website to help gamers find the cheapest new Xbox games out there. In a way, I'm like bizrate.com or priceline.com, it's a free service. I also talk about Xbox mod chips, the "real" cost of piracy, and how to be a cheap-o when it comes to buying Xbox games. Don't worry, everything is free, it's my own personal site people. :)
www.cheap-xbox-games-retriever.com
Before you leave sign up for my free newsletter and I'll let you know where the bargains are and latest price updates on my site.