In his latest industry note, Signal Hill analyst Todd Greenwald talked about video game publishers' prospects in 2009. With the economy continuing in the toilet, Greenwald said that the $59.99 price point for software could be in danger.
"To us, the biggest risk facing all publishers is the demise of $59.99 pricing for front-line 360 and PS3 software titles. With all of the price-reductions made during the holiday season, funded jointly by both retailers and publishers, there is obviously a concern that $59.99 goes away, which would be fairly devastating for margins, as development and publishing costs would stay virtually flat, while sales would take a 20% hit," Greenwald commented.
For the time being though, publishers don't seem to be having too much trouble maintaining the $59.99 price point on brand new releases.