The High Cost of Gaming
MTV Games is reporting on the financial pinch next-gen gamers will feel now that the 360 is out. $60 games are drawing frustrations from both sides of the gaming industry. From the article: "Many developers and publishers say the reason for the price hike is simple: Next-gen games, because of graphics, coding, voice acting, cinema scenes and everything else gamers expect, cost more to make. 'As a studio we can certainly speak to the amount of man hours and increase in staffing for next-generation content,' said Cord Smith, the producer of February 2006 car-combat title 'Full Auto.' 'As a gamer, it seems like it costs a lot to enter this new generation.'"
I don't know shit about console games, but wouldn't it be logical to expect next gen game's prices to fall as the 360's userbase increases, therefore increasing the size of the market? I mean, all the launch titles will be outdated before there's decent market penetration.
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If you adjust for inflation, it's not really as much as it was in previous generations. I remember when Street Fighter 2 came out for SNES. That game was $70! So the new games for XBox 360 cost $60. Adjusted for inflation, that's less than what SF2 cost when it first came out. Or we can look at price as a percentage of yearly wage. Still, it's less than what it used to be.
"Next-gen games, because of graphics, coding, voice acting, cinema scenes and everything else gamers expect, cost more to make."
This is only partially true. The cost of games is up, however the industry's profits are so massive that it would really just barely eat into them to cover the advancing demands for quality and developement.
The real reason that prices are being driven up is because forecasts for industry earnings foretell another crash of the market within the next 2 - 5 years. The decision to fix prices on games is so earnings can stay up for the those select few that stand to make a good amout of profit (EA executives Bing Gordon, Larry Probst, I'm looking at you) can come out ahead when everything falls apart, and the only people standing to lose anything are the developers and their jobs.
That's about it.
If the higher standards really do take extra man hours, is that one of the reasons why PC gaming was somewhat in decline compared to consoles? (eg. 720p at 1280x720 is much more akin to PC resolutions) Or are those comments rubbish?
The solution is to wait a few months after release before you buy a game. It's really not that hard to do.
One time I threw a brick at a duck.
Are gamers such a homogenous group that they all demand these same things? I know a lot of gamers do like the super-intense state of the art games, but surely there are segments of the market other than this! A lot of gamers are getting older too, and more older people are starting to play, and I think they would be very happy with good graphics (rather than superb) and good gameplay. I think only the small independent developers are providing these games, though. The internet lets gamers and developers find each other easier. It's a market the big players don't bother with, and they apparently don't know it exists or believe it is unimportant.
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Sadly it looks like these companies still believe that all people want are better voice actors, better graphics, and better camera angles. However, i dont really think this is the key. If they would spend less on hiring expensive talent for voice actors, like they use to do. Spend alittle less time on making the graphics shiney and making them artistic (A good example would be Shadow of the Colossus). Spend alittle less money in advertising, maybe our game prices would go down. When will they learn that you dont need to put so much money into a game to make it good? Some of the best games go under the radar that have mediocure graphics, great gameplay, great storylines, and hardly had a lick of advertising.
Hell, were going to learn about your game one way or another, any gamer that is really into the gaming industry will check ign(or there affiliated networks), a local game stop, or a magazine that mentions the game by name instead of a full page add. Stop putting money into turd fests, and put money in something thats good, if the game is good..people will find out about it, trust me.
The newest things aren't necessarily the best.
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No, no it wouldn't. The object here it to make money, not please a group of people that while bitching to High Heaven about the prices of this or that consumer toy, will continue to fork over the cash-ola. Why the Hell would they lower the price? You on drugs?
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Just another example of how badly we need a new direction in games than our current "Next Gen" approach. I for one nominate Will Wright and his amazing Spore concept/game. http://www.gamespy.com/articles/595/595975p1.html Yeah I know, gamespy. But its the best coverage of the inital Spore unvailing from GDC 2k5 I could find.
Demented But Determined.
MTV Games? Cool! Looks like we picked up another client, folks! I look forward to seeing several stories a day from MTV games now that the Z-man's on the case.
This is rubbish. If you go by the logic that 'better graphics/voice acting = higher price tag' then console games should have dropped to $30 for a brand new, day its released game during the PS2/Xbox/GC era. Most console games flat-out have awful graphics, poor textures and low resolutions. That alone should justify a $10 cut but it doesnt happen. Vice versa, PC games with their resolutions commonly reaching 1600*1200 the least, often times requiring a hardware upgrade just to reach 60 frames per second, hardware stress-testing graphics should cost $60~$80 by now. Same thing for voice acting, music, and the extra cost of developing for new hardware (if you add $10 for each hardware generation since the Atari 2600 we should be paying over $100 for a game by now.)
More content, lower price. Welcome to the wonderfull world of game economics.
The reason could be that game companies look at their respective userbases and decide wich userbase is most likely to be stupid enough to pay more for less.
Or perhaps the reason is that the console version has to recover the licensing cost. MS doesn't get a penny for a pc game but they certainly get paid for an X-box game.
As for the cost increasing because of either inflation or higher production costs. If the industry was working properly this would be offset by increased market share meaning they would have more copies of the games being sold to spread the cost over.
Games are not normal product. They are a luxury item partly bought by parents for kids and adding yet another 10 (your currency here) is likely to at least make parents think twice. Especially in a down economy. The 5th of december in holland is sinterklaas, the day to give gift to each other like christmas in is in the rest of the world, and the PSP has NOT BEEN SOLD OUT for two weeks now. The original rush was the game fanatics buying it but this was too early for the holiday season buying. Only the most together parents would have started shopping that early.
I am no analyst but this leads me to believe that many a kid is not going to find the PSP in his shoe (Sinterklaas uses shoes, Santa stockings). Part reason? The high price for the games. Come on, most of the games are rehashes, the are smaller without such niceties as voice acting and yet cost more then full pc games?
Oh and a further tell-tale sign that the cost of production has little to do with the cost of games. How can every game cost exactly the same amount to produce? What do I mean? Well if cost of production detemines price and every game is priced the same then the cost of production must be equal.
No games are priced for what the market can bare. Then some daring company raises it by 10 and if it works slowly other companies will follow. Price hikes like the euro introduction work wonders too.
I think that the game industry is just shooting itself in the foot again. With copy protection just a fantasy does the industry really want to raise the barrier against simply buying the game? Anyone want to take bets on how long it will take before the 360 is hacked?
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Maybe I'm just cheap, but I can't remember the last time I paid more than $30 for a game. Sure I have to wait a while to get some games, but I don't mind.
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I hope Nintendo can really pull through with their promises to make game development simple and cheap with the Revolution. I think ease of development may become a HUGE factor in who wins the next console war...
Sony and Microsoft can show me all the pretty graphics they want, but if I just don't have the money than it really doesn't mean anything to me, does it?
They're blaming the cost of games on voice acting? That is the biggest load of crap ever becase that's like the once place they can hire good AND cheap actors to play the parts. However, instead of going that, developers are intent on paying big bucks to celebrities because they believe that it somhow legitimizes their game by having big name celebrities in the credits.
Billy West, a voice actor with the roles of Fry and Prof. Farnsworth from futurama to his credit, has an interesting article on The Onion - AV Club about how Hollywood pays people like Cameron Diaz 20 million for their voice in Shrek while overlooking the vetran voice actors in the industry. He makes a lot of good points about how good film actors don't make good voice actors and vice versa, since a voice actor has to learn to expression emotion without the use of his physical features, and how regular actors never really escape their own voice. He also has other interesting tibits about how voice actors typically help producers save money because they can do multiple different voices. I mean, would you guess that the same actor did the voices of Fry, Prof Farnsworth, Zapp Brannigan, and Zoidberg on Futurama?. Anyways, the point is that I don't buy the fact that the video game industry is all that interested in keeping prices low, because they could find cheaper means of production if they were truly interested in doing so.
You want me to pay for:
Can I please see a few more games like Alien Hominid? Not speaking from a genre point of view, just the style of the game. I think the XBox360 Live Arcade is a step in the right direction, but I'd rather see new games with old-style graphics, not the other way around, which is what I'm seeing from a lot of those games (ie Joust, Smash TV).
This whole post just wrote itself. It took like 2 minutes to write it. That means I feel strongly about it. You should probably take that with a grain of salt... I'm just saying.
"When the atomic bomb goes off there's devastation...but when the atomic bong goes off there's celebraaaaation!"
So, if next gen games are costing so much more to produce, why is it that a game like Call of Duty 2, which is made in tandem for pc and xbox 360, will sell for 50 bucks on pc and 60 on the console? Seems like they might be messing with the market base a bit.
Almost all first gen games are expensive. I still remember paying about $80 for all my 64 games when it first came out. What was I thinking?!?
I buy my games on ebay for $5 to $20 dollars. Once in a while I'll pick up an A-List title (like Valkyrie Profile) for $35-$40. The people who should be worrying about the high cost of gaming are at Microsoft. So far they haven't done much to make me wanna pony up the cash for there next gen. Not when I've got 20+ games on my shelf still in need of playing from last gen.
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Guh...all the prices on this page are messing with my head cuz I keep thinking Canadian prices and I don't understand why $60 games are a big deal. Then I realize that's like $70 CAD and I'm still like "That's still not that bad" How many games can you play in a month? 1.5? Give or take depending on genre and all that? I know people who spend more than that in a month on weed. Generally addictions are expensive. I think this thread is mostly composed of addicts complaining about how expensive their habits are. :D
since they can't just patch it all to hell (and with the harddrive on the 360 optional, they really can't anymore).
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What I find amazing is that generally everyone sees gaming differently than they see other forms of entertainment media. While I will admit that there are radically different formats for say music versus games, the fact that they are both entertainment media ties them together. When I pay to go see a movie, I expect it to occur once. I pay my $8 (cause I live in Minnesota where movies are still less than $10 a hit) and see it once. If I really need to, I pay $8 to see it again, or I wait until the DVD release, pay $20 and then own it. I find it suprizing that more gamers fail to take advantage of the rental industry for exactly the same reason, especially with netflix-like renters for games which let you keep them as long as you want. I mean, really, how many games do you want to own permanently? Carrying forward, those you do want extended time with to unlock all the super-secret-sacrifice-a-goat-to-find ballerina costumes may very well be worth the full price, and once you hit this kind of time commitment you easily get to the "less than $1 per hour" range, which is very reasonable, especially when looking at the cost of film ($4-$5 per hour) or live shows ($5-$20 per hour).
I've tried to do some digging up of launch prices for games in the Atari/NES era, but came up empty. I seem to recall them being high enough to likely be well over $60 adjusted for inflation. Is gaming really more expensive now than it was 15 years ago?
What a load of carp. Right, so the technology is changing and we didn't realise it was going to cost more so we have to pass on the costs to you guys...sorry! Come on - technology is constantly evolving, the only difficulty is keeping your developers skills up to date. The technology gets better/shinier/more complicated (choose two) but costs overall do not go up, except for inflationary rises or where a major retooling is required (I can't think of anything of the top of my head - I was going to say something like a holographic display but we're already producing 3d!). This is just price gouging.
Fnord! Any sufficiently undocumented code is indistinguishable from magic.
We get in it worse here in the UK the RRP is 45 pounds, even taking into account VAT thats not right at all.
If a certain entertainment-option (such as a game) is not worth the price asked to you, then don't buy it. Selling games at $60 works only when people buy games at $60, and evidently, quite a few do.
Most games fal in price rapidly, so it's not like you can't play the very same game for half the price, if you're willing to wait a few months. If not, and you absolutely *must* have the game at release-day, even at $60, then obviously the price was not too high, but instead correct. It's called a free marketm, get used to it.
To stop alienating gamers in Japan they'll start alienating American ones! Japanese people are used to paying $60 for games, so the tables are finally even, winning Microsoft some favor on the other side of... the other pond. Actually, (I'm my own insightful reply) Japanese 360 games are $10 more too (ignore the discount thing), which probably provides twice the alienation doing nothing would have... I wonder how Microsoft possibly could hope to do well in Japan with games that cost more than a used Xbox 1, and no Kasumi-shaped pillow.
Sendou Wave Kick!!
Studios don't need to create games with flash-in-the-pan graphics, as long as they make them fun. As far as I'm concerned, they can get away with Gameboy Advanced graphics on the Xbox 360 as long as the game is fun. It's nice to have all that kickass graphical ability for the hardware - BUT THAT DOESN'T MEAN IT ALL HAS TO BE USED. Games with good gameplay mechanics don't require that much horsepower - unless of course, an original gameplay concept comes out that requires an incredible amount of CPU horsepower in order to be workable.
The thing is, people in boardrooms who understand marketing know that they can get wads of cash by making semi-playable games with fancy graphics - knowing that, for the most part, the gameplaying public generally consists of people who will be blown over by graphics and little else. Gameplay be damned.
Also, they know if they make the game easy to finish fast, they'll be out there buying new games faster.
What I fear is that eventually game companies will make little less than semi-playable movies - which will cost more to buy than movies themselves. We already know that games make more than Hollywood. This is just the next logical step on the road to the next video game crash.
READY.
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One thing they waste far too much time on in many games is character models. I guess it makes for nice screenshots, but how often are you right up close to a character examining the detail on their boots?
This is at least true for FPSes. I guess RPGs and other more interactive games can use close-up detail. But thinking of UT2004, the character models have obviously been slaved over for many months, and are works of art; but the most you ever see is a couple of quick flashes as someone runs past. To be honest, the character models in the original Unreal Tournament (99?) were perfectly fine for an FPS.
The same mostly goes for weapon and power-up models. Gratuitous transparency and pretty textures is interesting for maybe the first 30 seconds, and then it could just be a yellow circle for all the player cares.
That's a big chunk of graphics they could simplify and spend much less time on. Further, it would save wasting lots of polygons on them.
The thing that really makes a big impression is the landscapes, and a lot of those are at least partially machine generated, so I guess they are probably a lot more efficient in terms of results for time spent.
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look for sales during the first week like at Fry's Electronics. Check those ads! Some Best Buy has sales too. Check them!
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Here's the equation to determine retail cost:
Retail price = cost of each unit + the amount that will make us most money.
As you will see - There's no development cost there. If it costs less to devlop, then that is simply an increase in profits. Why would they charge less? So that they can make less money? It simply doesn't work like that. Business doesn't exist to offer a "fair" price to consumers. It exists to maximise profits. They are charging $60 because they think that the increase in per unit profit will offset the decrease in demand.
Well, I haven't really read in detail anything about videogame development costs but, are they really more expensive to produce than a blockbuster movie with, say, julia roberts and brad pitt plus the best of the FX ? I'm pretty sure than each one of the Lord of the Rings movies was more expensive to make than Halo 2 and I haven't seen yet a 60$ DVD of a single movie.
I don't think it's justified princing a videogame in 60$. Maybe costs per unit in the cartridge era where higher and we could in some way accept that price, but now hay games come in optical media? Apart from the game itself, their cost is less than a dollar to manufacture for crying out loud!
And as people said before, nowadays they have a very populated audience. Videogames are no longer a hobby for a few, and neither its price should be.
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Thinking never hurt anybody --MacGyver
Games at the moment have voice acting, cinematic scenes, thousands of scanned images for textures etc. What difference does it make if you render them at a higher resolution? PC games do this at the moment and cost LESS than console games!
Am I missing something, or are the companies just using "next-gen" as an excuse?
You stupid gamers. Why do you expect so much? The game which has been capturing most of my attention these past few weeks has been Alien Hominid - and not the main game, the mini game. Thats right, stick figures jumping around on a little, limited tile-based map. Why has this captured my attention? Not the graphics (though it is funny to watch those little guys explode), not the voice acting, and not the cinematics. Its the simple fact that I can play with 4 people at a time and can make my own maps. Its concept and implementation that together create a great gameplay experience.
As long as people will pay $60 for games, games will sell for $60. If it makes you feel any better, just think of the official release as an early release especially for those who are willing to fork over extra money. For example, as far as I'm concerned, Madden 06 came out in early November for $28. There was an early release back in August for those dumb enough to pay $50 (and sometimes more) for it.
I can't what for that revolution to come out. I'd like to pick up a gamecube and play those games for less than $20 each. The reason that I had bought a PS2 instead of GC was simple, I wanted to play all the FF games that were released on PS1 & the 1 for PS2. I picked up I think it was like 3 FF for $20 or slightly less each. To me, that was an excellent bargain. I paid $50 each for FFX, FFX2, and Kingdom Hearts. FFX and Kingdom Hearts were worth every cent. FFX2 was really worth some where between $30-$40 but heck, I got it just as it was released to I was willing to play a premium at that time.
I can't wait for these freaking new consoles to come out. I the Xbox came down enough I might even consider it. I doubt it though. I was always a die hard Nintendo follower until the PS2. (I truly believed that Sony had and excellent stragety for owning media console wars by sneaking one into every household in the giuse as a video game machine.)
Currently, with how our finances are, I could either buy a GC and the hardware all to get it going, and 3-5 games, or I could by any one of these new consoles and hope that what ever game they release is worth it. I'm not ever doing that again. I bought pilot wings for N64 back when it was one of only 3 games that you could get for the system. I'd much rather wait and rent a game to try it out and then decide to purchase it. N64 was o.k. in its time, but several games like maybe FF for N64 never showed up.
I'm taking a wait and see attiude now a days.
File that among the phrases I never thought I'd see. (Okay, maybe I could see it for Vin -- not for the crap car movie and the stupid James Bond "extreme" knockoff, but for Iron Giant, which he was great for before he made his name. He actually rates as a voice actor, having done legit work there.)
But most celebs who do voice work on games are on the level of Billy Dee Williams, who just wants to collect some spare coin for a cameo as Lando in Jedi Knight II. Gamers really don't care about his voice if the game's any good, and Billy Dee ain't going to go on the tonight show and hawk the fact that his career's so run out by now that he's saying five sentences for the cut scenes in a shooter.
But to get to your larger point -- No, I don't want to eventually have a games industry that's all run by Bruckheimer-style producers who see the value in tradeoffs like the one you suggest. The model that delivers the best games to me is more like Nintendo's Director-as-artist system, which'll get results like Zelda-Windwaker. Where does the money go for games like that? To things like great, seamlessly-done music that genuinely adds to the experience.
Anyone could make a long list of games with celeb voices that are worthless and didn't make any money. It'd be much harder to find games with great original scores that truly bit. The industry has some money, and right now they don't know where to spend it.
"Fundamentalism" isn't about divine morality. It's about human authority.
If I'm going to have to pay more for next generation titles because they are oh so superior graphically, then developers better damn well start pumping out games that have lasting appeal, better stories, and are fun to entice me to pay that extra $10. I can eat for a week on $10. I'm sure a lot of us can! IMO, graphics can take a back seat. I'd rather pay 40 to 50 dollars for a game that keeps me coming back after that initial period of fierce gameplay, than for something that looks amazing that I end up only playing once!
And you know who the biggest loser was in this whole OJ thing?
BILLY DEE WILLIAMS! No longer kind of the wife-beaters.
I wouldn't mind seeing all these in-game product placements, commercials, and just blatant ads if it were lowering the cost of the games. As it is, someone is getting paid to put this crap in, it sure isn't me, and yet Im the one who has to suffer for it...Shouldnt all these mountain dew and nike ads be lowering the cost of these games? Why am I paying to be advertised to?
As long as folks are willing to pay high prices, companies will continue to sell at high prices. That applies to games as well as music.
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