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Game prices are too low, says Capcom exec
(www.eurogamer.net)
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this post was submitted on 26 Sep 2023
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The MSRP for Nintendo Entertainment System cartridges in the mid-80s, adjusted to today’s U.S. Dollar, would average around $150-200.
I don’t think games should cost that much, but we stuck with the $60 price point for literal decades so it’s not completely unreasonable for someone to talk about raising prices.
(I also write this while having only bought one game? two? In the past year.)
Adjusted price is a common talking point here, but it ignores the other side of inflation... that wages have stagnated and rising prices obviously means that people have less spending money.
Consider also that there is a lot of choice with the back catalog on PC as well as free games (that people can make in their spare time at no cost thanks to FOSS tools and free information). Pre-broadband, gaming was more of a take-it-or-leave situation.
So yeah, I think most people already see increasing prices as being motivated by greed. And some people likely see the $60 price as already greedy when games are often filler and spectacle (with poor QA testing on top of that, because they know people will pre-order it anyway, and then buy the later DLC or cosmetics).
@MomoTimeToDie
The problem is the game industry, in the meantime of never going beyond the $60 threshold, found a far far more lucrative way of making money than just raising the MSRP. In fact, they found multiple ways of making money: skinner boxes, loot boxes, micro transactions, season passes, FOMO storefronts, etc etc. And even though we may agree that the MSRP eventually has to increase, they won't suddenly give up on those anti-consumer, predatory practices.
It's not unreasonable but at the end of the day, we buy these games to waste time. There's not a whole lot of justifying why im going to spend more on something i use to just unwind when i can buy plenty of 20$ games that will give me hundreds of hours of entertainment
On the other hand, we're buying these as entertainment, not out of some utilitarian need. Seems pretty reasonable to spend more on a single "higher end" game than a bunch of cheaper ones.
I get that and i bough baldurs gate full price on release, but as the games start creeping up past 70 to like 100, it's like for what? I can just not spend this money. It's not like a car i need to get to work and car prices were skyhigh last summer and fall for example, or food, etc. If gaming companies cant compete on wages with other tech businesses that need programmers, they're just gonna have to make do with less manpower. Long winded way of saying inelastic market.
I mean special editions and the like already sell for 100+ to a dedicated base. It's not all that unreasonable to think that there's games that would significantly benefit from shifting to a focus on a narrow demographic of fans willing to spend.
How much of the cartridge sale was profit to the developer?
The hardware of the cartridge cost money. Distribution to retailers cost money. The retailers took their cut.
I wouldn't be shocked at all if the publisher's net revenue per game is significantly higher in real dollars than it was in the NES era.
Okay but PS1 games were similar prices and printing CDs is cheap.
The MSRP for a NES cartridge includes the circuits, the manual, the box, the physical space, the license and a finished game. Do you get any of these with modern AAA games?
They sell vastly more games than before. And there isn't a media anymore. And they should have increased their productivity in all these years.
Video games are not a good. They're a digital product, a service. The cost is completely decorrelated from the amount you sell. Which is why it is so profitable.
Can you help me understand your comment? What does MSRP mean?
Manufacturer Suggested Retail Price
Ah, sorry. It stands for “Manufacturer’s Suggested Retail Price.”
In the U.S. the law doesn’t allow a manufacturer to require that retailers sell their product at a particular price, but they’re free to “suggest” one so that’s how we ended up with the MSRP.
It doesn’t carry any real weight, but it generally serves to anchor consumer expectations for a product’s value. (It also gives retailers an easy metric to compare sale prices against.)