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Sony Hints At Higher Priced Games

Sony's Kaz Hirai hints that, in addition to the $600 console, we may have even more expensive games to look forward to. From the Gamasutra article: "I don't think consumers expect software pricing to suddenly double. So, the quick answer is that we want to make it as affordable as possible, knowing that there is a set consumer expectation for what software has cost for the past twelve years. That's kind of the best answer I can give you. So, if it becomes a bit higher than $59, don't ding me, but, again, I don't expect it to be $100."

24 of 335 comments (clear)

  1. Great idea by KDR_11k · · Score: 5, Insightful

    When people are outraged at the price of your console, tell them you'll charge more for the games too. Sure. I'd like to know where that guy learned marketing.

    --
    Justice is the sheep getting arrested while an impartial judge declares the vote void.
  2. Hit games shouldn't be expensive, except early by 192939495969798999 · · Score: 3, Insightful

    If it's a super hit game, then charging $100 on the first day or for pre-release is only good economics -- if there are people willing to pay that much, why not? You can always drop the price later, while increasing it later will definitely sting more. Granted, I would prefer to not see any games over $50, I know that the market is just so high now that if a console is $600 when it used to be $100, then games are probably pushing $100 or even $150 for it! Now if you're dumb enough to buy madden 20XX supreme ultra plus edition for $100, then you deserve to be disappointed if it turns out to be "Yet Another Football Game".

    --
    stuff |
    1. Re:Hit games shouldn't be expensive, except early by Control+Group · · Score: 4, Insightful

      You have to be real careful with this sort of thing.

      You really don't want to train people to know that you're going to drop the price of something within a few weeks. It's one thing to know that you could wait a year and spend $30 to get the game you're about to spend $50 on. It's another thing entirely to know that you could wait a month and spend $50 to get the game you're about to spend $80 on.

      A lot more people will be willing to wait month to save $30 than a year to save $20. All you're going to do, ultimately, is drive down sales within the first few weeks of release.

      It would probably work for the first couple games they did it with, sure...but even the American buying public would catch on to quick follow-on price drops. Note how, even today, MS denies that they have any plans to drop the price on the 360 when the PS3 launches, despite the fact that it's so painfully obvious that anyone with two neurons firing in synch is pretty sure they will.

      But you never, ever, want people to believe (much less know) that the thing they're about to buy will be cheaper just a little bit down the road.

      --

      Reality has a conservative bias: it conserves mass, energy, momentum...
  3. Re:Wait, you mean it will play GAMES, too? by Volante3192 · · Score: 5, Insightful

    Well, since you read TDB, I'm sure you caught this comment ( http://www.thedigitalbits.com/mytwocentsa122.html# comp ) where they found out it's the HDMI interface on the Samsung that causes the problems; switching to component placed Blu-Ray nearly on par with HD-DVD.

    Hopefully they'll get that fixed before companies start enforcing the downsample flag...

  4. Stupid... by Anonymous Coward · · Score: 1, Insightful

    What made Sony popular was the cheap price of CD games on the PSX compared to the higher priced N64games. Now that there are tons more games available compared to those days. A lot of games are cheaper but now Sony wants to change that by charging more? The price is simply to pay for the BluRay technology which will crash and burn in the mainstream movie media market, as well as HDDVD. They are all stupid. Boycott them all!

  5. Might be their perspective by springbox · · Score: 5, Insightful

    I almost get the idea that in Sony's own world this is somehow being presented to "hype" the console. The wording of these articles are priceless since I was honestly expecting someone (from the article) to try and explain how this is a good thing. (as in: PS3 = Fancy resturant, games = fancy desserts.) I am not sure how continuing to leak information about the high cost of the system is going to help Sony.

    Even so, it would seem as if there are some fans who would still buy the system and games even if they continued to raise the price.

    1. Re:Might be their perspective by rtaylor · · Score: 2, Insightful

      I am not sure how continuing to leak information about the high cost of the system is going to help Sony.

      If everybody thinks it will be $600 then you can put it out at $500 (still most expensive) and call it 20% off.

      Works for clothing stores (200% markup, 25% off sale moves product pretty quickly).

      --
      Rod Taylor
  6. Re:Already too Expensive by spun · · Score: 3, Insightful

    I just play two year old games I find in the bargain bin for under $30. Often they come with one or more expansion packs and are pre-patched. I don't have to spend insane amounts of cash on a gaming rig, either. And hey, the games are still new to me.

    --
    - None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
  7. Let's not even mention "real dollars" by Control+Group · · Score: 4, Insightful

    Let me just head one line of reasoning off at the pass: I'm sure someone's going to start throwing around calculations involving inflation and real purchasing power. Which are right... ...but they don't matter.

    People, by and large, do not factor the devaluation of money between then and now into their price comparisons. For example, consider gas prices - everyone complains about them, despite the fact that they're actually lower (in terms of real dollars) than they were 25 years ago.

    Yet you'll always hear the stories about how "I remember when a gallon of gas was fifty cents!"

    Video games are the same way. They've been in the $50 range for a long time, and people are therefore acclimated to that price point. It doesn't really matter that $50 for a game in 1995 was more money than $50 is now.

    According to a calculator I found online (grain of salt, but it passes my smell test and I can't be arsed to really research this just now), $200 in 1985 translates to $363 in 2005. Which means that the premium XBox 360 is a whole $36 more expensive than the NES (and the core system $63 cheaper!), in terms of real purchasing power. This has not stopped plenty of people complaining about its price.

    Of course, anyone who figures real purchasing power into the equation is right, when you come down to it...but it doesn't matter when it comes to what drives the purchasing public to either pull the trigger or not on a new toy.

    --

    Reality has a conservative bias: it conserves mass, energy, momentum...
    1. Re:Let's not even mention "real dollars" by FooAtWFU · · Score: 3, Insightful
      According to a calculator I found online (grain of salt, but it passes my smell test and I can't be arsed to really research this just now), $200 in 1985 translates to $363 in 2005.
      A calculator you found online? I'm going to go out on a limb and assume you mean this little thing (which returns your answer as $363.01). So you have nothing to fear. From the source note:

      The numbers since 1913 use the CPI compiled by the United States' Bureau of Labor Statistics and released by that agency every month.
      These are as accurate as the CPI is meaningful. Thank you for using EH.Net.
      --
      The World Wide Web is dying. Soon, we shall have only the Internet.
    2. Re:Let's not even mention "real dollars" by Chris+Burke · · Score: 4, Insightful

      According to a calculator I found online (grain of salt, but it passes my smell test and I can't be arsed to really research this just now), $200 in 1985 translates to $363 in 2005. Which means that the premium XBox 360 is a whole $36 more expensive than the NES (and the core system $63 cheaper!), in terms of real purchasing power. This has not stopped plenty of people complaining about its price.

      I don't see why they shouldn't complain if they want to, as far as the console itself goes. The cost of electronics has been going down steadily since the 80s, both absolute and inflation adjusted. This is because producing them has become cheaper. In the late 80s a PC would cost thousands of dollars; today you can get one for $500 at Walmart. A game console in 2005 costing the same as a game console in 1985 after adjusting for inflation isn't impressive in the least. So if people percieve the price of the 360 as too high, well, there's some basis for that. Personally I don't think it's bad.

      For games it is easy to see that they have actually gone up in cost to produce, so it isn't surprising that their purchase cost has gone up. I think this gets to people because they have the reasonable expectation based on experience that technology should go down in price (or stay the same in absolute dollars and thus become cheaper due to inflation), and they see the games as being an extension of that technology. This is the acclimation you're talking about. Or maybe they're like me. I certainly appreciate that games cost more to produce, but honestly I don't care. Telling me how many millions a game cost to produce doesn't make the $100 or whatever price any lower, and doesn't make me want to pay that high a price either.

      --

      The enemies of Democracy are
    3. Re:Let's not even mention "real dollars" by Chris+Burke · · Score: 3, Insightful

      I think a 360 has a lot more components in it than a NES had. Take out the hard drive and the DVD drive, memory card ports, wireless, etc. and I think you could make a more accurate comparison... and your point about similar components being much cheaper would hold true.

      But those are all things that a modern low-end PC has which a PC in 1985 didn't. Including in many cases the hard drive; my friend's multi-kilo-buck computer had two 3.5" floppy drives to work with. Electronics have gotten so much cheaper that we can have many more components in them and still have them be cheaper than they ever were before. So the 360 costing the same as a 1985 console is really not impressive at all -- or unimpressive, my point being that whether or not it is expensive should be based on the analysis of today, not compared to 1985 before the PC revolution really took off.

      --

      The enemies of Democracy are
  8. Re:Already too Expensive by voice_of_all_reason · · Score: 2, Insightful

    Sir, you are a genius.

    It's amazing how easy it is to afford 3 systems at once and new games 2 or 3 times a week -- if, at this point, you are just discovering Xbox and Gamecube (like me)

  9. Re:What are they thinking? by blueZhift · · Score: 3, Insightful

    At this point, they'd better not do too much air travel with that stuff in their veins or they'll be arrested. Seriously, Sony seems to be doing all they can to nuke the PS3 launch. Expensive console + expensive games + another confusing format war != success in the marketplace. Assuming they are not high or insane, then that just leaves full of hubris. They must really think they own the market and can do whatever they want. If so, they're about to find out that hype and fanbois/fangrrls cannot carry a console.

  10. Make the comparison then by Ahnteis · · Score: 3, Insightful

    Nintendo has specifically said that they are aiming for a $50 price ceiling for games. When asked.

    Sony? "Well, we doubt they'll get up to $100".

    There's a reason people are fed up with what's coming out of Sony currently.

  11. I just have one question by Anonymous Coward · · Score: 1, Insightful

    When did Sony get bought by Games Workshop?

  12. The Higher the Price of the Game by Greyfox · · Score: 4, Insightful

    The less likely I am to buy it on impulse. Most games suck, as simple as that. I'm willing to risk $20 against the chances that the game will suck. At the $50 I'm much less inclined to buy a game on the spur of the moment. At $70 almost all of the games would look unappealing given that I can wait a year, buy them used (In which case the publisher gets NOTHING) or both. At more than $70, I'd be inclined to chuck the console and find a different hobby.

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

  13. This is Sony after all... by dmcooper · · Score: 2, Insightful

    This is the same company that allows pre-orders for an expansion that it knows is going to be rendered worthless with upcoming changes to the game, doesn't announce those changes until the credit cards are billed, and then claims that everything is okay despite emptying of their online servers. This is the same company who's BMG branch allowed rootkits onto our computers without express or even implied consent, increasing the security threat both from malware and allowing people to cloak hacks for games, and a host of other problems I'm sure. This is the same company that treats its customers like idiots - and then feigns ignorance when people stop plopping more money down. I do have to admit - I'm curious to see which PR guy they send out to handle this, and how they spin things going forward.

    --
    "To work for libertarianism -- to oppose the growth of government and aid the liberation of the individual -- used to be
  14. Maybe they know what they're doing... by rafemonkey · · Score: 2, Insightful

    There exists a strange group of people called "Early adopters" who will go to amazing lengths to have the latest and greatest. These folks will gladly shell out $600 for a console and $70 each for games. And, if your intial run of consoles is small enough, they will buy them all. Perhaps Sony knows this...

    Here's my take on Sony's strategy.

    I. Soak the early adopters for as much cash as possible.
    II. Follow the launch with a rapid and drastic price drop for both consoles and games.
    III. Profit.

    After all Sony may have made it's share of mistakes, but they've had one or two small successes as well.

  15. Re:Already too Expensive by peter_gzowski · · Score: 2, Insightful

    Not that I like to see the cost of games rise, and comparing playing games to spending time with friends and family is an apples-to-oranges situation, but if we go by sheer hours of time occupied? Your $60 gets you an evening of entertainment. It seems like video games have a pretty high hours to price ratio, assuming you pick your games accordingly. Many PS2 RPGs are 60-90 hours of gameplay for around $60. You would have to watch a $20 DVD 10 times or so (assuming a 2hr film) to come out ahead. I tend to only buy 3 or 4 brand new games a year (bargain bin and rentals for the rest). If they go from $60 to $70, I don't think this behaviour will change too much. I don't think I'll be shelling out $600 for new console, however. Nintendo may win a spot in my living room for this generation of consoles.

    --
    "Now gluttony and exploitation serves eight!" - TV's Frank
  16. Re:Already too Expensive by Damvan · · Score: 2, Insightful

    Great, another "I don't play games, I go outside and have friends." post. Goes well with a "I don't have a TV, I go outside and have friends." post.

    Good for you! But we really don't care. And you can lose the passive-aggressive implication that those of us who do play games don't go outside, don't have friends, and spend "hours in the basement."

  17. Re:Well, back to the classics I go... by vix86 · · Score: 2, Insightful

    The wheel gets reinvented so much because it has a low risk factor value. Graphics are what keep raising the developing costs for a game, I think it costs millions these days to be able to get a game out the door that meets the "standard" of a good game with good graphics. And since people want games with better and better graphics, I figure either companies have to cut costs somewhere or raise the cost of a game. I blame the general public for the state that games are in.

    Its because of the high development costs that publishers are only willing to foot the bill for a game they are sure will produce revenue. Read, a sequal, or a flagship title. Gods only know what HD Graphics are going to do to development costs in the next generation games.

  18. Re:What are they thinking? by Tim+Browse · · Score: 2, Insightful

    It's important to remember that there was an original Killzone for the PS2, and that it kinda sucked.

    It's also intsructive to note that the Killzone screenshots etc looked awesome. A few rational people queried how such graphics would actually move, given it was a PS2 game, but they were largely ignored. Then again, screenshots always look better when you render them at 4x actual game resolution, if you know what I mean.

  19. Re:Already too Expensive by cowscows · · Score: 2, Insightful

    Yeah, a good video game is a lot of value for the money. The only problem is that it's often a bit of a crapshoot, due to facts such as publishers willing to ruin promising games by forcing them out early, or review mags/websites giving higher than deserved scores in order to keep the pre-release games coming.

    If I knew that every time I was spending $70 that I'd get at least 50 hours of entertainment, I'd happily spend that money. But I've been disappointed enough times that I really think a purchase like that through. And of course, as the price increases, the consideration increases, all lessening the chances I'll walk out of the store with that game.

    Interestingly, there's another dynamic that's starting to come into play in my life. Namely, getting 50 hours of entertainment out of a game is likely going to take me months, because I'm consistently finding myself with less free time as I get older. I'd rather spend $30 for 15-20 hours of playtime, because in as long as it'll take me to spend 20 total hours gaming, there will be something else out that will make me forget about the previous game.

    Add in the fact that I've still got a handful of longer games that I've never gotten around to finishing, and I've got more than I can manage to play already without spending a dime. That, in a way, decreases the value of new games to me, and makes a high price tag that much less appealing.

    --

    One time I threw a brick at a duck.