Video games and pricing

While price elasticity is prevalent with many smaller independently developed and published video games, many of the larger AAA studios have set the price point at $60 for their games. This is a lot of money to spend on a single video game and that does not include the additional downloadable content that can make the total up to $80 or higher.

[UltimateMaster]

Pricing has gone out of hand.
Worst of all, some games do go up to 120$ with season pass and all DLC.

However, the article has it wrong.
He says a game with a 40 Million dollar budget should be priced lower than a 200 Million $ budget.

First of all, A company's goal is to make profit.
So, they have to sell enough copies of the game to recover it's cost.
That's not something that is variable, it is a fix cost "40M$".
That game's goal is to match it in profit, then the rest is pure profit.

It's not something like electricity, where the more you consume, the more it cost the company "and the more they charge you".

So, you've got to consider how many people "and how many platforms and potential buyers" you are dealing with.

Not everyone is going to buy a game like Heavy Rain, therefore it's customer base is smaller.

However, a very popular franchise like Star Wars can take the risk of going beyond their budget because they know there is a ton of fans out there willing to pay for the game.

What bothers me is when a franchise becomes successful, yet they put the minimum effort into it's game to cut cost and milk the game at a maximum.

Take Call of Duty for example. There's a huge install base for that game. They sell 10 Million copies of the game every year.
They know they are diving in profit, but yet, what do they do?
Nothing but exploiting their customers. They take shortcuts to save time: https://www.youtube.com/wat...

Instead of lowering the price of the game to 40$ and still make a ton of profit, they hike it to 120$ with "DLC" of maps that aren't even well tough out.

Advance Warfare seems like the biggest change in the franchise, if it's good that remains to be seen.
But you get my point.

It saddens me that were just getting the same games every year. As much as I like some of them like Assassin's Creed, I won't buy them every year anymore because they could be doing something different.
I applaud Ubisoft because they make a lot of original titles.
But we don't need the same game every year nor multiple times a year.

[3-4-5]

We got more for $50 than we ever did for $60.

[ScottyHoss]

I think there's a price gap between regions that is out of hand.
US: $60
Canada: $70
Europe: $81.61

[joab777]

Well said but the reason games r priced the way they r regardless of whether they are revolutionary or annual releases is simple...because it sells.

And companies hav known for awhile that games wouldnt sell for $80 to account for inflation etc. Thus dlc. Consoles are a much smaller leap in tech this time b/c ppl cant and wont spend $700 for the jump we would have normally seen.

Its why we have microtransactions etc. The economy worldwide has been severely damaged and business has shifted models to remain profitable. Its much easier to get ppl to part with nickels and dimes...even if they add up to $100x when all said and done.

Its crazy but its exactly a result that has come about b/c of many different factors. Yes, many companies hav been terrible about it, but it isnt entirely the fault of one entity.

[UltraNova]

Do you blame them for charging like this?

I mean those 10 million buyers every year are kind of asking for it aren't they?

[BattleAxe]

- purchase internet
- purchase console
- purchase peripherals
- purchase Subscription
- purchase game
- purchase DLC
- purchase micro-transactions
- purchase yearly releases of the same game

Oh how gaming has evolved.....

[VJGenova]

Consoles, games and peripherals have always been there.

To name a "few" of the NES peripherals:

1. Power pad
2. Power glove
3. NES 4 Score
4. Light gun
5. Arkanoid contoller
6. Turbo controller
7. Laser scope
8. Zoomer
9. Super stick

Also don't forget preorder bonuses and day 1 DLC. I hate that the most!

[BattleAxe]

How much did the internet, DLC, micro-transactions and subscriptions cost back then?

[joab777]

How much did gamea cost when taking inflation into consideration, consoles? What was the budget?

Its a business trend adapted by gaming companies. Yes, some have taken advantage, but as a whole, it is the route that was taken and accepted to keep many industries alive. It will change again. Remember that it is a direct reflection of we live our lives financially etc.

[MGSmarioPRO]

Just one thing at least in my country. Games had a price of 70 to 80€ at Nintendo/Sega time and when PSone came they started to be 60€. The price over here is still the same since PS came 20 years ago, with the difference that now you can buy them from internet at lanch for 50€ and if you wait 2/3 months you can have them for half price (less the big AAA and Nintendo games that are almost always with the same price).

So the prices for games are way better today because they didn't grow up in pair with the other stuff. For example in these 20 years a coca cola is 4 times more expensive and that happen with almost all food.
Games are expensive but people that complain about the price have no idea of what it was to live in the 90 and before.

[VJGenova]

It really is crazy that people forgot how much video games cost in the 70's and 80's. My dad bought us a texas instruments computer (catridge based system) for $500.

http://www.allgame.com/plat...

NES, SNES, and N64 games generally retailed for $60. I spent $75 on street fighter 2 in 1992 and I think $80 on Turok in 1997. Ignoring the fact that money went further back then, way more money goes into game development these days. So instead of getting a 30 minute game, you may get a 30 hour game.

If you look at the pc market, a lot of new AAA rated titles go for $50. Some may go for $60. Diablo 3 comes to mind.

Indies generally go for $5-15.

I have to say we have it pretty good. I buy 4-6 new games a year. So far this year it was Dark Souls 2, Stick of Truth and a preorder of The Witcher 3. I bought 13 games for roughly $45 total during the steam sale. Most of those were indie titles that would've gone for $60 each 20-40 years ago.

I also recall with the release of Street Fighter 2 Turbo and then Super Street Fighter 2, all that started at $60+, my brother and I were wishing we could "upgrade" our copy instead of buying a new game. A la DLC. Careful what you wish for I suppose ...

[UltraNova]

I agree with you in some extend. I remember paying 75 euros for Super Mario 64 back then, inflate that to 80 in todays money! Thats 120 $!

It was really crazy back then, gaming was for rich people or kids like me who worked summers and mid-holidays to buy 2 maybe 3 games a year!

I remember collecting those 120 stars in SM 64 like 6 times until I could afford another game.

But all that way back then do not excuse devs and publishers today with all that day one dlc, cut games offered via dlc later on, micro transactions, yearly passes etc etc...

How on earth a game is sold at 60 both physically and digitally is still acceptable is beyond me really..have we really come to this? really?

[DivineAssault]

Instead of making complete games like they used to, they rush it & slap a crappy patch on it later... Then charge for content that shouldve been in there to begin with

[thebudgetgamer]

This is kind of silly to be outraged by this. When I started buying console games back in 87/88 I was paying about forty bucks for a New game. You take inflation into account it's pretty amazing how slowly games prices has gone up.

[TheSaint]

Agreed, games have been £40 for ages, not sure how they haven't gone up more TBH.

[UltraNova]

They wouldn't dare raise the prices, not while used games pose a significant thread. Should they manage to ban used games (in a similar way Microsoft tried to do)I can bet you my liver right now we will see a 10 buck price raise within a year and that will be just the start.

[TrollingKoala]

The pricing is just insane for a AAA title in Australia, in America you guys get your games (new AAA) for about 60 dollars, over here it is 100 dollars which is about 93.98 American dollars and plus some games now in Australia when being sold new are going for 110 dollars which is terrible.

[ShaunCameron]

Three reasons. Smaller demographics, too much state intervention and the general lack of market competitiveness/clout.

[ShaunCameron]

Meh. The only people that think $60 is too much for video games either are too young to remember the 8 and 16-bit eras or they suck at managing their finances. Video games have always been and always will be a luxury hence the generally high prices.