2K Games has been the first company to commit to next-gen game pricing, setting the NBA 2K21 price on Xbox Series X and PS5 to $ 70 – $ 10 more than its price on PS4 and Xbox One.
But it appears that 2K Games is not the only publisher to implement a price increase on Xbox Series X and PS5 games, as research company IDG told GamesIndustry.biz that other major publishers are considering doing the same.
While this is a very high amount to pay for the standard edition of any game, it is also a necessary price increase. Compared to other industries, we’ve been pretty lucky when it comes to game pricing, and here’s why.
Why the price increase?
While the price of GPUs, broadband and streaming services have increased over the years (often to correlate with inflation, rising costs, and demand), the price of games has held steady. stagnant for years.
“The last time prices for next-gen launch software went up was in 2005 and 2006, when it went from $ 49.99 to $ 59.99 at the start of the Xbox 360 and PS3 generation,” said IDG President and CEO, Yoshio Osaki, at GamesIndustry.biz. “During that time, costs and prices at other affiliated verticals have increased.”
When it came to the era of PS4 and Xbox One, we essentially got a pass. The prices of the games did not increase despite the fact that the developers used the latest technology, which means that for 14 years we have not had to face the harsh reality of how much the development of the game really costs. While the price of the games has remained at $ 59.99, the cost of making them has increased. massively – Osaki claims that the production costs of next generation games have increased between 200% and 300% (depending on the studio, game, etc.). That is huge.
While game publishers should always be aware of prohibitive prices, they should also be aware of sustainability. If the cost of producing something costs more not only in cash but also in labor and resources, then we must make peace with the fact that we too will have to bear most of that cost.
And, according to Osaki, it seems like just a $ 10 increase in 14 years is pretty good, and it could have been worse.
“Even with the rise to $ 69.99 for the next generation, that next-generation price increase from 2005 to 2020 only increased by 17%, well below other comparisons,” Osaki told GamesIndustry.biz. “While the cost of development and publishing has increased, and prices in other entertainment verticals have also increased substantially, the price of next-generation software has not reflected these increases. $ 59.99 to $ 69.99 does not even cover these other increases in costs entirely, but yes move it more in the right direction. ”
Adding it all
I love or hate them, microtransactions, and paid DLC have allowed many publishers to keep prices stable for the past 14 years, as companies can cover their costs with the base price and then make more profits from the extra content. Or, in the case of free games like Fortnite, they can simply get all of their benefits from microtransactions.
We have probably reached a point where microtransactions and DLC are not enough to cover the increased production costs in games. In an ideal world, if overall game prices are going to go up, I’d like to see less (read: no) microtransactions in games that have a PVP of $ 70. But that’s not going to happen.
The cost of the next generation
We know that the PS5 and Xbox Series X will be powers and that the new technology does not have a price (probably a high one). While we currently don’t know how much any of the consoles will cost, we don’t expect them to be cheap.
Don’t get me wrong: The thought of how much the next generation will cost makes me shudder. Not everyone has that amount of disposable income out there, certainly not me. But at the same time, I appreciate that a huge leap in technology comes with a leap in price.
But even if the prices of next-generation games are justifiable in the sense of how much the games cost, they aren’t necessarily affordable. We could end up seeing more players switching to subscription services like Xbox Game Pass to get access to new games, where you have access to new and old games for $ 10 a month, instead of spending $ 70 for a single game. I know it is My preferred route.
But nothing is written yet, and we’re still waiting for the prices of more next-gen games to be revealed. What will be particularly interesting is the price that Microsoft and Sony set for their PS5 and Xbox Series X exclusives, as that will set the standard for other next-generation games. Until then, I am preparing for the worst.
