I threw this out there over at the IGN boards because I got sick of people saying to quit complaining about rising game prices and get a new hobby.
Of course, you can throw my logic dispalyed here out the window concerning PS3 game prices. I would expect those prices to be higher due to the fact that Blu-Ray media is gonna be 'spensve. Xbox 360 can't use this excuse.
I'll start with the original poster who did a movie comparison. He is correct that when you break it down into an entertainment hours per dollar comparison, a game is one of the cheapest forms of entertainment you can get assuming it is a good game that you will spend more than 10 hours on. I think that its too big of an assumption to make. There have been a lot more games this generation that I've spent less than 10 hours playing, than games I have spent over 20 or 30 hours playing. In most cases, I don't get a very good hour per entertainment dollar number when I look at some of the amount of time I've put in for most games.
The biggest problem that we really have as hardcore gamers is choice. I go to a movie theater and there are maybe 10-15 movies playing. I go to a game store and there are literally hundreds of games sitting on the shelves all competing for my $50.00. If I go to a movie theater and the movie sucks, I'm only out maybe 15 bucks and 2 hours of my life. If I buy a $50 game and it sucks, then I'm out $50 and the 5-10 hours of my life that it took me to figure out the game sucks or that its something I quickly lose interest in. My time and money lost is far greater on a game that sucks, rather than on a movie that sucks. In my opinion, there are very few actual games out there worth $50.00.
As for the comparisons to game prices rising over the years and the old 'well games need to keep up with inflation' mantra I keep seeing thrown around, congratulations to those of you that believe this, because you've swallowed the hook that the EA, Activision, and Take-Two, want you to believe.
I'm going to explain this up front and then give you the reasons for the explanation later. The fact is, there is no good justification for a game price increase of $11-$12 per game for Xbox 360 games. ( I say 11-12 per game because this is the actual cost increase when you figure the increased sales tax to go along with it.
Lets do a quick review of game pricing. Some of you may remember these prices - some of you may not. I lived and gamed in each one of these eras so I know what they cost. Lets review a few of the major systems and the game costs over the years:
Atari 2600 cartridges - $9.99-$14.99. The price on certain carts rose to $19.99 at the end of the 2600 life cycle.
NES cartridges - $19.99-$29.99 to start, later in the life cycle some games were $34.99-$39.99.
SNES and Sega Genesis cartridges - $29.99-$59.99 and a few exceptions saw games as much as $69.99. I remember paying $69.99 for Street Fighter II on the SNES. That was one of the few games in all of gaming history that I can honestly say was worth ever penny and then some. I also remember paying $59.99 for the original Phantasy Star on Sega Genesis.
Why did the costs go up so much between the NES and Genesis/SNES eras? The reason why is because cartridge size was bigger, memory size on the carts was bigger, which in turn led to higher manufacturing costs. Another little known fact is that during this era, Nintendo and Sega started charging outrageous licensing fees to their 3rd parties in order for them to make games on their respective systems. The licensing fees were anywhere from $10-$15 per cartridge. All of this increased cost was passed along to the consumer. Also keep in mind that there wasn't as much competition for your gaming dollar during this era as what we see now.
Enter the Sony Playstation era. Game prices actually fell to $39.99-$49.99 price range. Why? Because manufacturing costs were cheaper for the CD media and Sony didn't charge their 3rd parties outrageous licensing fees. This is the main reason why Sony dominated. Virtually all of Nintendo's 3rd party support disappeared and jumped ship to Sony because the cost to make a Playstation game was a lot cheaper than making an N64 cartridge.
Today, game prices are still in that $39.99-$49.99 range and this doesn't make a whole lot of sense based on the past trends of video game pricing. The big publishers today would have us believe that game prices must go up next generation because the costs of developing games is a lot more expensive than what it used to be. I agree with them to some extent, but I wonder why game prices didn't go up this generation compared to last generation? Surely the cost of developing a PS2 or Xbox game is a lot more expensive than the cost of developing a Playstation One game, yet we saw no price increase this generation and this folks, leads us to the real reason for a price hike to $59.99 next generation.
The reason why our game prices are going up is strictly to increase shareholder value and increase the stock price. The real reason is so that they can increase revenue in order to buy more exclusive licenses in order to fill up the shelves with a bunch of licensed shovelware CRAP that most of us hardcore gamers point and laugh at when we are in EB Games or Wal-Mart. Everyone is in a race to adopt the EA model. Sure, everyone talks a big game about innovation and wanting to give gamers different experiences, yet in reality, this isn't the case. I look at the Xbox 360 launch lineup and I see sequel after sequel after sequel after sequel. I'm not trying to imply that these sequels aren't quality games, I'm just simply pointing out that the talk of innovating is a load of crap. Anybody that's paid attention to this business for more than 5 minutes can figure out what sells to the masses and its usually some big licensed shovelware crap or a sequel to a game that was a hit.
The real reason for the game price increase is so that EA, Activision, Take-Two and the other bigs, can fill their coffers to increase shareholder value and have enough cash to continue buying up exclusive licenses that most of us don't want and to also continue the policy of buying up any quality 3rd party dev house they can get their hands on. The reason for the Microsoft published games price increase is so that they can try to get back even a small percentage of the unholy amount they wasted in acquiring Rare.
Its my opinion that the hardcore gamer is going to be further pushed out of the market as more companies adopt the EA model of doing business. We're going to wake up one day, look at our game collections, realize all the money we're spending to continue this hobby and come to the determination that the stuff these companies are putting out, just isn't really all that much fun compared to the cost we're paying for it.
Most people won't even read this far in the post, so I'll just stop now, but there are a lot of other factors at work in the game price increase, none of which have anything to with actual game development costs going up.
Of course, you can throw my logic dispalyed here out the window concerning PS3 game prices. I would expect those prices to be higher due to the fact that Blu-Ray media is gonna be 'spensve. Xbox 360 can't use this excuse.