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Why Next-Gen Titles Cost $60

Posted by Zonk on from the some-worth-more-than-others dept.

Heartless Gamer writes "Forbes.com has up an article detailing what goes into the $60 price tag for next generation games. Publishers get about a buck per copy sold. 'The remaining $59 per game goes into many hands. The biggest portion — nearly 45% — goes toward simply programming and designing the game itself. Then the console maker, retailer and marketers each get a cut. Add in manufacturing and management costs, and depending on the type of game, a license fee. Some gamemakers also have to pay a distributor to help get their titles in stores.'"

3 of 241 comments (clear)

  1. What about Wii? by jZnat · · Score: 5, Insightful

    Then how can you explain why Wii games only cost $50 still? I blame the increased graphical power of the 360 and PS3 which increases the development costs due to the developers' (or publishers?) need to utilise all graphical power available.

    --
    'Yes, firefox is indeed greater than women. Can women block pops up for you? No. Can Firefox show you naked women? Yes.'
  2. Inflation by UbuntuDupe · · Score: 5, Insightful

    Easier explanation:

    -Why did next-gen titles five years ago cost $50?

    -Now, take that answer and apply inflation for five years.

    1.1^(1/5) = 1.9% per year inflation is all it takes, and it's been worse.

    --
    Apology to Ubuntu forum.
  3. Because it's what the market will bare. by hal2814 · · Score: 5, Insightful

    As long as people are willing to pay $60 per title, that's what they will cost. You can break down the numbers all you want but if the market won't tolerate $60 games, there sure as heck won't be any. The least important links in the chain will either be paid less or eliminated entirely.