With the next generation of Xbox Series X and PS5 games at $ 70, Xbox Game Pass becomes even more valuable

As we move into the next generation, more and more details about Xbox Series X and PlayStation 5 are coming to light. We have the full specs and designs for both consoles, and we hope to have the full roadmap of the Xbox exclusives, hopefully in late July with the next Xbox event.

Another less palatable reveal came through 2K today, who confirmed that it will sell the next-gen versions of its games for $ 70. I hope to see PC games see a price increase soon as well, as the game worlds And its complexity soars to accommodate more powerful hardware, in an increasingly competitive landscape. The slump also accommodates market changes, inflation, and other realities in the financial landscape.

NPD gaming industry analyst Mat Piscatella postulated that the hit should probably have happened in 2013, noting that initially game developers were nervous about the low prices offered by mobile games. However, it appears that both sections of the market actually overlap, rather than cannibalize each other.

The move to $ 69.99 should have taken place in 2013, but people thought Mobile was a threat to the console business (among a couple of other controllers, but in hindsight, hahaha). Instead, we got collector’s, silver, and gold editions that rose above $ 59.99 anyway.

– Mat Piscatella (@MatPiscatella) July 2, 2020

Still, I feel that price increases can be a tough sell, particularly with an impending recession as much of the world struggles with the consequences of the pandemic. In that scenario, the winner could be Xbox Game Pass, PlayStation Now, and other similar subscription services.

The first developer to effectively break the idea of ​​selling next-gen games for a higher price is 2K, with its upcoming NBA title 2K21. Current versions of the game will continue at $ 60, but if you want a version that works on Xbox Series X or PlayStation 5, you’ll have to buy a version for $ 70. I hope we will see other developers and publishers do the same in the coming weeks and months.

Sports games, in general, have a fair amount of overhead, license agreements need to be made, etc., but they are also very popular. Apparently popular enough to avoid backlash over its mechanical payout limit to win it would bury a shooter or RPG. Microtransactions in games like FIFA and Madden are a great revenue generator for companies like EA and 2K. Still, it’s also true that developing these games is certainly not getting cheaper, particularly as the industry becomes more competitive, with equivalent wages.

At least, this is the mindset that publishers have. It could be argued that big publishers pay their executives too much, too much. Activision CEO Bobby Kotick was recently in the limelight, accused by his own shareholders of earning too much. Kotick took home $ 30 million in 2019, which was flanked by 800 possibly unnecessary layoffs at Blizzard, including many roles the company has rehired for. A investment group filed a motion with the US government over the criticism, which included the following quote via Gamespot.

“While capital grants exceeding the full payout of peer companies would be objectionable in most circumstances, it is especially concerning in this case because Activision Blizzard employees face job insecurity after the layoffs of 800 employees in 2019, and they generally make less than a third of 1% of CEO earnings, with some employees, like junior developers, making less than $ 40,000 a year while living in high-cost areas like Southern California. “

Whether the price of games going up is justified or not up for debate, and I certainly don’t have the full business knowledge to offer a definitive answer. However, any way you look at it, Xbox Game Pass, PlayStation Now, and free games are likely to grow as a result.

Free subscriptions and games will grow

Xbox Game Pass is already praised for its value, with a Netflix-style subscription that offers all Xbox Game Studios titles in advance as part of the relatively cheap base monthly payment of $ 9.99. Additionally, Microsoft adds a rotation of titles from the smallest indies to the largest AAA publishers, keeping the service vibrant and exciting. Sony has a competing product called PlayStation Now, but the company has not offered the same breadth of content that Microsoft has with its own service.

I am in a fortunate position to get games as part of my job, but as a kid I was lucky to get more than a couple of new games a year. Particularly in the case of Nintendo titles, which were often up to £ 80 or more in the UK, depending on the offer. Xbox Game Pass would have been a godsend when I was young (as we say in my city), and those facing financial difficulties, either as a result of COVID-19 or otherwise, will get great value from services like Xbox Game Pass .

Xbox Game Studios will likely have 4-5 games in the first year of Next Generation. (4×70 = $ 280)
One year of Xbox Game Pass is $ 120. Pic.twitter.com/v0DOyCTP1V

– colteastwood (@Colteastwood) July 2, 2020

Beyond Game Pass, we’ve already seen how playing for free can turn a game into a gold mine in the form of Fortnite and many others. If games go to $ 70 across the board, and not just for sports titles that frankly seem to have an indulgent fan base, I suspect more free components to play like Call of Duty’s Warzone mode become more common. .

We’ve even heard some rumors that Halo Infinite can ship in a two-SKU format, with an extensive single-player campaign tied to a free, independent multiplayer client. However, so far we have not been able to block physical verification of that rumor. However, would you be surprised if it happened? At this point, it wouldn’t be.

Next-gen will evolve the landscape further

With the move to Xbox One and PlayStation 4, we saw digital game sales and free games become increasingly common in an industry undergoing rapid change. Without a doubt, streaming services like Project xCloud and Google Stadia will also have a role to play, as Microsoft aims to bring Xbox-console-quality games to devices that traditionally haven’t been powerful enough, such as phones, smart TVs, and PCs. low-end. . It will be a wild ride, and I’m here for it.

What do you think about the possibility of games increasing by $ 10 across the board when the next generation arrives? Let us know, below.