Game prices will go up, but it will be good for us (next-generation)
- Thread starter Panajev2001a
- Start date
$50 is max I will pay for a game. Period. And even then, it's very, very, very rare. If prices go up, I can see my rental of games will surely skyrocket. ^^
And let me tell you, I definitely do NOT mind having 2 systems and ZERO games for either and just renting the games all generation long. I'm sure those companies would love to see the system: software ratio at launch with $60 games at 1:0 =P
Lower prices, or I'll just rent more. Simple as that. I personally love to collect games, but uh, they've got DVD movies, anime, manga, and music CDs to compete with. Game at higher price = more DVDs for same price. Tons more manga....you get the picture. ^^
And let me tell you, I definitely do NOT mind having 2 systems and ZERO games for either and just renting the games all generation long. I'm sure those companies would love to see the system: software ratio at launch with $60 games at 1:0 =P
Lower prices, or I'll just rent more. Simple as that. I personally love to collect games, but uh, they've got DVD movies, anime, manga, and music CDs to compete with. Game at higher price = more DVDs for same price. Tons more manga....you get the picture. ^^
Spectral Glider
Member
Panajev2001a said:
Actually, that's what hurt the 16-bit days. People stopped paying those high prices as the gen wore on which resulted in a large discounting of titles and killed off a good number of publishers and developers from those days. It's also what facilitated the push for CD-ROM to help drive down some costs on both ends.
If some games start going to $60, forget it. I'll just wait for the games to hit the bargain bins. I've already been doing some of that this generation.
Nice argument Pana, I listened in on Bobby Kotick (CEO of Activision) telling analysts that his company will certainly raise wholesale prices of their games by $4-5 next-gen. That would bring the cost to the retailer up to ~$45 per unit, there is no way the $50 msrp will hold. $55 at a minimum, probably $60.
For the 2nd largest US publisher to say they;re hiking prices openly it has to be assumed that Activision know 1st parties and other large third parties are on board with the price hikes. Certainly Microsoft must have indicated they're aiming for a universal $60 price-point at Xenon launch and EA are going to follow. Given the increased costs as you've outlined and recent success of Madden CE, Doom III and the enormous pre-orders of Halo LE you can't really blame the publishers for hiking prices up, either through technological necessity or their bottom line.
I don't believe publishers are going to release launch games at less than $40 as suggested, you had the likes of Gradius III/IV and Aqua Aqua retailing at the same price-point as SSX and Madden at PS2 launch. The hardware providers don't want their latest high-tech, whiz-bang machine play host to unpolished, at least in the graphics dept., games, it puts off the early adopter and will allow the competition to crow.
$60 msrp opens up plenty of possibilites along with a cheaper downloadable version (don't believe the manufacturers would do this, they won't want to piss-off the likes of Wal-mart). Will Nintendo think about Matrix based ROM as a storage device for Revolution? Could there be a shift in payment for online services to the packaged goods i.e. $50 offline version and $60 online? Are Sony/Microsoft/Nintendo going to hike license fees, perhaps using the "excuse" of value-added software tools such as XNA? Plenty of opportunities and I'd love to know exactly what Microsoft have told 3rd parties about their business model for Xenon.
For the 2nd largest US publisher to say they;re hiking prices openly it has to be assumed that Activision know 1st parties and other large third parties are on board with the price hikes. Certainly Microsoft must have indicated they're aiming for a universal $60 price-point at Xenon launch and EA are going to follow. Given the increased costs as you've outlined and recent success of Madden CE, Doom III and the enormous pre-orders of Halo LE you can't really blame the publishers for hiking prices up, either through technological necessity or their bottom line.
I don't believe publishers are going to release launch games at less than $40 as suggested, you had the likes of Gradius III/IV and Aqua Aqua retailing at the same price-point as SSX and Madden at PS2 launch. The hardware providers don't want their latest high-tech, whiz-bang machine play host to unpolished, at least in the graphics dept., games, it puts off the early adopter and will allow the competition to crow.
$60 msrp opens up plenty of possibilites along with a cheaper downloadable version (don't believe the manufacturers would do this, they won't want to piss-off the likes of Wal-mart). Will Nintendo think about Matrix based ROM as a storage device for Revolution? Could there be a shift in payment for online services to the packaged goods i.e. $50 offline version and $60 online? Are Sony/Microsoft/Nintendo going to hike license fees, perhaps using the "excuse" of value-added software tools such as XNA? Plenty of opportunities and I'd love to know exactly what Microsoft have told 3rd parties about their business model for Xenon.
jecclr2003
Banned
sorry folks.. as an average consumer I can tell you one thing and this IS concrete. You raise the prices and people will buy LESS. REGARDLESS of quality.
Besides, it's kind of ignorant to think a higher price point will ensure quality. (doom 3 anyone?)
Another point is when you start up a franchise the price of prducing a game initally is quite high, but you do see a return on your investment if marketed correctly. Even a shit game like Driver 3 made a nice profit already. After the intial start up any sequal take less work (usually) and are cheaper to produce.. thefore.. more cash.
Something with a high price mark like a videogame ensures it takes less per unit sales to make it's money back.
Your average gamer isnt like the ones on this board. I myself have over 300 games for various systems, I'm not the norm. Most have a single system, buy MAYBE a title or 2 a year and rent the rest. Now try and tell me that the extra $5 or $10 isn't going to dissuade them from buying more. You want more income from a game.... drop the price.. not raise it. You price a game competitivley (sp?) with a DVD or Cd and watch how much you sell. It's working for EPSN so far. Over a million sold and rising.
Basically, since i'm rambling, thinking that raising the price will help is just wrong. People will just wait until the price drops and then buy. It will only hurt not help.
Besides, it's kind of ignorant to think a higher price point will ensure quality. (doom 3 anyone?)
Another point is when you start up a franchise the price of prducing a game initally is quite high, but you do see a return on your investment if marketed correctly. Even a shit game like Driver 3 made a nice profit already. After the intial start up any sequal take less work (usually) and are cheaper to produce.. thefore.. more cash.
Something with a high price mark like a videogame ensures it takes less per unit sales to make it's money back.
Your average gamer isnt like the ones on this board. I myself have over 300 games for various systems, I'm not the norm. Most have a single system, buy MAYBE a title or 2 a year and rent the rest. Now try and tell me that the extra $5 or $10 isn't going to dissuade them from buying more. You want more income from a game.... drop the price.. not raise it. You price a game competitivley (sp?) with a DVD or Cd and watch how much you sell. It's working for EPSN so far. Over a million sold and rising.
Basically, since i'm rambling, thinking that raising the price will help is just wrong. People will just wait until the price drops and then buy. It will only hurt not help.
DCharlie
And even i am moderately surprised
"Prices will go up: they need to"
The assumption seems to be that if they slap an extra $5-10 on the price that they'll still get the same base of people buying games. I don't think they will.
Taking the Japan view on things , top line games are coming out around 8100 yen , but mainly others hit at around 6800. The thing is , the main reason (at least IMO) that the japanese market is shrinking is because there are so many other things to spend your cash on (DVDs being one).
A price hike of 500 yen or so isn't going to help this situation.
There is two schools on thought :
1 - you up prices and hope you keep the same buyer base.
2 - you lower prices and hope to increase your buyer base.
I'd like to see EA take the industry by the balls and go for the 2nd approach, because it would put the shits up everyone else and everyone would have to follow suit.
Also, from my IP copyright job days, a new format also carries a "New format tax" (at least in the UK) for a couple of years. I assume that Blu-ray/Whatever MS uses will also be subject to this tax? Anyone know if this tax is the same in the US/JPN?
That could push the prices up by a good few dollars on it's own.
The assumption seems to be that if they slap an extra $5-10 on the price that they'll still get the same base of people buying games. I don't think they will.
Taking the Japan view on things , top line games are coming out around 8100 yen , but mainly others hit at around 6800. The thing is , the main reason (at least IMO) that the japanese market is shrinking is because there are so many other things to spend your cash on (DVDs being one).
A price hike of 500 yen or so isn't going to help this situation.
There is two schools on thought :
1 - you up prices and hope you keep the same buyer base.
2 - you lower prices and hope to increase your buyer base.
I'd like to see EA take the industry by the balls and go for the 2nd approach, because it would put the shits up everyone else and everyone would have to follow suit.
Also, from my IP copyright job days, a new format also carries a "New format tax" (at least in the UK) for a couple of years. I assume that Blu-ray/Whatever MS uses will also be subject to this tax? Anyone know if this tax is the same in the US/JPN?
That could push the prices up by a good few dollars on it's own.