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Title: Videogame prices set to rise on next-gen consoles


Ayane - March 18, 2005 07:29 AM (GMT)
QUOTE
Videogame prices set to rise on next-gen consoles
Rob Fahey 15:37 17/03/2005
$59.99 or higher being eyed as a potential price point for next-gen launch titles

Software for next-generation home consoles looks set to be more expensive than current titles, with comments from leading publishers such as Take Two, Activision and THQ all pointing to premium price points for AAA next-gen titles.

Speaking at the Banc of America Securities Consumer Conference yesterday, representatives of all three companies indicated that higher prices for software are inevitable on the next-gen platforms - the first of which, Xbox 2, will launch later this year.

Price points of $59.99 or higher were mooted for AAA games on the new consoles at launch - but other titles may be priced less expensively, with THQ acknowledging that its children's titles may not be able to sustain a $49.99 or higher price point, while Take Two simply said that its next-gen games would be priced higher "where appropriate".

This strategy is likely to see a two-tier structure emerging for game pricing, where premium titles command a premium price point of $59.99 or more, while less important games are sold for between $39.99 and $49.99 - much closer to the current price point.

While the cost of developing next generation games will undoubtedly be higher than current development costs, the proposed price hike is less to do with development, and more down to a desire among publishers to expand their margins - with the hardware transition apparently seen as a perfect chance to accomplish this by bumping up software prices.

Leading US retailer Electronics Boutique, which also presented at this week's conference, also acknowledged that prices were set to rise in the coming year - but like the publishers themselves, made it clear that the market would only sustain premium prices on certain products.


Queen Helena - March 18, 2005 11:15 AM (GMT)
I think that is a little unfair, people are then going to think that a game is better because you need to pay more for it !! It's not clothing !!

DavidTheSlayer - March 18, 2005 01:58 PM (GMT)
I think that since I had the snes I seen prices high for new consoles and games etc
but never higher than £40.

I also feel that after the rich buy it and after a few months the prices will drop as always, well hopefully, Its proberly extortion. :shocked:

l33t_ninja_thug - March 18, 2005 02:03 PM (GMT)
i need cheaper prices
im poor
;_;

Mills McDougle - March 18, 2005 03:12 PM (GMT)
I don't think anyone should be surprised that the game prices will rise. I do think they'll fall once PS2 and Xbox games stop getting pushed so regularly.

Victorthebattousai - March 18, 2005 03:41 PM (GMT)
Well, this stinks. Like I could afford games at 50 bucks, much less 60.

Mills McDougle - March 18, 2005 04:40 PM (GMT)
The technology behind all of this is freshly new(as all systems are, I know). Cell technology? That's never been used before, so everyone should've known that this would up the prices.

I don't mind, as long as Microsoft and Sony prove to me that the systems deserve this price tag. :yes:

Serenity Now - March 18, 2005 05:24 PM (GMT)
Same thing with Nintendo 64 games. No surprise here. Every generation games get more advance and cost more to make. If the quality is there then I'm all for this. I'm not saying that I wouldn’t want the games to be cheaper though. :).

janejana - March 18, 2005 06:21 PM (GMT)
QUOTE (Mills McDougle @ Mar 18 2005, 08:40 AM)
The technology behind all of this is freshly new(as all systems are, I know). Cell technology? That's never been used before, so everyone should've known that this would up the prices.

QUOTE
While the cost of developing next generation games will undoubtedly be higher than current development costs, the proposed price hike is less to do with development, and more down to a desire among publishers to expand their margins - with the hardware transition apparently seen as a perfect chance to accomplish this by bumping up software prices.

;)

in support of the theory that this more because of greed and less because of rising development costs, one of the big things MS has pushed to developers is the fact that the next-gen Xbox would focus on user-friendliness (from a developer point of view), thus lowering overall development costs.

so...yeah. i'm not really buying the whole "omg new technology = more expensive!!!" argument. generally speaking console game prices have stayed steady; even the N64 price hike for games was mostly because the cartridge-based format they was expensive to begin with (and one of many reasons why so many companies bailed out of the Nintendo boat at that point), not necessarily because it was the best technology available (in fact most developers--Square in particular--saw cartridges as a step backwards technologically).

Dan - March 19, 2005 12:28 AM (GMT)
Im not suprised. This would have happended.

l33t_ninja_thug - March 19, 2005 12:33 AM (GMT)
makes sence

but still, people poor like me cant afford that

i need games
:pinch:

Serenity Now - March 19, 2005 02:06 AM (GMT)
QUOTE (janejana @ Mar 18 2005, 02:21 PM)
QUOTE (Mills McDougle @ Mar 18 2005, 08:40 AM)
The technology behind all of this is freshly new(as all systems are, I know).  Cell technology?  That's never been used before, so everyone should've known that this would up the prices.

QUOTE
While the cost of developing next generation games will undoubtedly be higher than current development costs, the proposed price hike is less to do with development, and more down to a desire among publishers to expand their margins - with the hardware transition apparently seen as a perfect chance to accomplish this by bumping up software prices.

;)

in support of the theory that this more because of greed and less because of rising development costs, one of the big things MS has pushed to developers is the fact that the next-gen Xbox would focus on user-friendliness (from a developer point of view), thus lowering overall development costs.

so...yeah. i'm not really buying the whole "omg new technology = more expensive!!!" argument. generally speaking console game prices have stayed steady; even the N64 price hike for games was mostly because the cartridge-based format they was expensive to begin with (and one of many reasons why so many companies bailed out of the Nintendo boat at that point), not necessarily because it was the best technology available (in fact most developers--Square in particular--saw cartridges as a step backwards technologically).

Good point. What I'm saying though is even though it may cost the same to make these wonderful games, it's a lot of work, and as games get more advance, the more time it takes to make them. If the developers want to charge more for games that take years to make then they should go right ahead.

remind - March 19, 2005 05:11 AM (GMT)
thats to bad. its going to be like back in the day. i remember back in the cartridge era, games were about 60-70 dollars but since the conversion to disks, games dropped to $40-50.

Victorthebattousai - March 19, 2005 02:14 PM (GMT)
Something else to consider. The discs themselves won't cost anymore than the current Xbox discs. What I mean is, no matter what tech they are using, it still costs the same amount to make the Xbox next disc as it does the Xbox, because they aren't using new discs, just putting more into said discs. I believe, anyway.

Serenity Now - March 19, 2005 04:37 PM (GMT)
QUOTE (Victorthebattousai @ Mar 19 2005, 10:14 AM)
Something else to consider. The discs themselves won't cost anymore than the current Xbox discs. What I mean is, no matter what tech they are using, it still costs the same amount to make the Xbox next disc as it does the Xbox, because they aren't using new discs, just putting more into said discs. I believe, anyway.

Yeah, you're right about that. Still though, 8.5 GBs is a lot of space to work with.

smiles - March 19, 2005 11:09 PM (GMT)
*takes a deep breath* ok AHHHHHHHHHH *stops takes another breath* AHHHHHHHHHHHHHHHHH
i need a job

Sexeh Kitteh - March 19, 2005 11:19 PM (GMT)
I can't afford the games now!!! This is sooo not right -_-




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