Large Publishers Pointing to High Prices
Despite Mark Rein's recent statements to the contrary, GamesIndustry.biz has word that Activision, THQ, and Take Two are all indicating that they may be charging $59.99 for next gen titles. From the article: "This strategy is likely to see a two-tier structure emerging for game pricing, where premium titles command a premium price point of $59.99 or more, while less important games are sold for between $39.99 and $49.99 - much closer to the current price point."
Slashdot already covered this from the other point of view, where Mark Rein of Epic found no reason games should be jumping to $60.
/ 1759251
http://games.slashdot.org/article.pl?sid=05/03/07
All it means for me is a longer wait. I've already been getting tired of buying games at $50 and watching the publisher suck up most of that money. Usually I only buy games at $40 or less. I have such a backlog of games anyhow that by the time I can play something new, it is already $20-$30.
Price fixing.
Costs of distribution are far lower today than they were maybe 10 years ago, and systems like steam and perhaps bittorrent mean its possible to launch a game on very little revenue - these consoles have broadband adaptors after all. Why the price hike?
Well the fact that three publishers have announced it at the same time makes me wonder if there is something dodgy here.
Any refutements or evidence in this one?
Can't see it turning out well though: Nintendo were previously thrashed on price for the N64, and they were only able to return to somewhere close to their previous revenue by producing an incredibly cheap console.
Joseph Farthing
http://josephfarthing.com
I have only purchased one game that was at or over the $40 mark, and that was HL2. I have over thirty games and only maybe two or three of them I would say is worth $50. I do however own 2-3 games that were worth $50 at retail, but I recieved them as gifts. By no stretch do I consider a static game to be worth $60, that's just ridiculious, especially with the overall lack of gameplay quality in games nowadays. I believe $60 is too much and any game put at that price will see a reduction in overall profit of that title. I would like to add that I can easily afford a $60 game a month if I wanted. I don't buy them at that price because I can buy other entertainment equal in value for half the cost.
I couldn't think of anything witty to say, so...you're stuck with this.
Compare $50 of todays dollars with $50 in 1990!
Anyone remember paying $60 or $70 for a NES/SNES new release? Granted, you were paying for larger ROM chips...
Look at the budgets of some of todays games. Millions of dollars. How much of a budget do you think Megan Man or Castlevania had?
They have to make the costs up somewhere.
It's sad, but you're right. And it's probably going to keep going up. The worst part is, IMO, the games are getting to be less fun than they used to... I still play my original NES and SNES games (emulated on my PC) almost as much as I do the few new games I've got (eg Call of Duty). I probably won't be buying a lot of new games, even though I could afford it with little hassle... just don't WANT them that much.
Windows isn't the answer... it's the question. NO is the answer!
I can wait until next year and pay $20! Even less! HAHAHAHA!
-- Microsoft is the most expensive commodity operating system and office suite vendor in the marketplace.
They can charge what they want. Standard economics, you don't even need to take the class to understand it. As price increases demand falls. At some point there is optimal profit. As you raise prices you are also loosing customers who would buy at a lower price, while lowering prices brings in less customers than the added profit.
They can try raising prices. However I personally consider $25 on a game too much, so already there are many games I personally do not buy. As price goes up more and more people will cross that line. I know many people who would buy more games, but their wife keeps saying that is too much.