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[Elios83]

http://money.cnn.com/2005/01/06/commentary/game_over/column_gaming/index.htm

Price: There's little doubt that gaming in the next cycle is going to be more expensive. At least one major publisher (Activision) has gone on record saying it plans to increase wholesale prices on its AAA games. Others will likely follow its lead. That will probably result in retail prices jumping $5 to $10 per title.

Will hardware prices follow that trend? At least one analyst believes so. Tony Gikas of Piper Jaffray said in a recent note he expects the Xbox 2 to break beyond the traditional launch price for new consoles, which has stood at $299.

"We think Microsoft will price its next generation system at or above $300 for the base model," wrote Gikas. "We also think there will be a model that includes accessories or network devices that could price as high as $350-$400/system."

So what about the hard drive? That's a little trickier. Many, at this point, believe Microsoft will opt for flash memory rather than the traditional hard drive found in the current Xbox, but things hardly seem nailed down. It's just as likely that the company will abandon any significant installed memory and will rely on the user's home network to store games.
Whether that happens or not, the next Xbox will definitely communicate with home PCs

 

[bitwise]

$299. the end

 

[Azih]

I don't think Microsoft is stupid enough to price above 299.99, they're still very much underdogs to Sony and need to keep to a reasonable pricing scheme.

 

[Papi]

Good grief.
It's all over. Sell your Xbox 2s.

 

[Lakitu]

It's all over. Sell your Xbox 2s.

Nice knowing you!

 

[Wario64]

Good grief.
It's all over. Sell your Xbox 2s.

*paging mods

 

[Deku Tree]

Don't get banned!

Whether that happens or not, the next Xbox will definitely communicate with home PCs

So in other words, my home mac network is screwed.

 

[AniHawk]

That will probably result in retail prices jumping $5 to $10 per title.

Great. We only had one generation across the board where it was a $49.99 standard. Fucking fantastic.

 

[retardboy]

That's great! I'd definitely love for my Xbox to communicate with my MCE PC.

 

[Unison]

More expensive games = far fewer games I buy at full price!

How about you developers simply spend less on game development?!? I don't need unlockables or tons of CGI wonderment, especially in something like Tony Hawk!

I sure as heck can't think of any Activision games I'd pay more than $50 for! Maybe an X Men RPG, but even then I'd probably wait for a drop.

 

[Prine]

I'll be there on day one to buy Xbox 2. Hope its not priced over $300 though

 

[Ghost]

I dont think they'll go above $300 (which will no doubt still translate to £300 in some mathmatical nightmare) because they'll probably launch with one version (it seems like it's hard enough keeping one version on the shelves right now) and the more expensive versions with things like Windows Media Center and wireless networking built in (Speculation) will launch further down the line at around the $300 boundry while the original unit falls in price.




I do wonder though, if Microsoft see their early launch as a way to rinse out early adopters (who would pay just about anything) for extra cash, then cut the price just as PS3 hype builds to bring in all the casuals and hopefully clear out their wallets before PS3 hits.

 

[sonycowboy]

I dont think they'll go above $300 (which will no doubt still translate to £300 in some mathmatical nightmare) because they'll probably launch with one version (it seems like it's hard enough keeping one version on the shelves right now) and the more expensive versions with things like Windows Media Center and wireless networking built in (Speculation) will launch further down the line at around the $300 boundry while the original unit falls in price

I do think that the inventory implications are pretty important. I guarantee you that EB, Gamestop, Best Buy, etc are NOT HAPPY with the idea that they'll have to carry 3 seperate hardware products. It makes purchasing and forecasting quantities for each much harder. And it inevitably raises your inventory beyond a level you'd like to have.

That doesn't mean it won't be sucessful, it's just that retailers hate to have sku explosions that force them to carry more inventory.

 

[Discreet]

i could se it at a higher price for the first year b4 ps3 and revolution come out, they cna make some extra cash on early adopters and drop the price when it starts competing head 2 head with the other 2 consoles

 

[Error Macro]

If Activision raises their prices, they are out. Simple as that. Stocks will drop, people will be fired. The public will not stand for $60 games that don't have some sort of gimmicky shit with them, like "limited edition" packaging, or a bonus DVD. $50 will remain the ceiling for games.

Anyone that launches a console at a greater than $300 price is out for good. They will be banished from the console industry. 3DO, anyone? Even the holy Neo-Geo couldn't gain anything more than a niche market. It still amazes me how long that system was supported.

 

[Kon Tiki]

No hdd, no buy.

 

[suikodan]

At least one major publisher (Activision) has gone on record saying it plans to increase wholesale prices on its AAA games. Others will likely follow its lead. That will probably result in retail prices jumping $5 to $10 per title.

Wow, prices for games will go up as they're supposed to go down. Games will never sell like music or DVDs if they keep the prices high like that. And people will continue to copy the games.

Stupid move... movies cost more to make than a game and yet, the DVDs are sold half the price of a game... ridiculous.

 

[Mr_Furious]

I don't think Microsoft is stupid enough to price above 299.99, they're still very much underdogs to Sony and need to keep to a reasonable pricing scheme.

They're dumb enough to abort the Xbox right after its most successful year ever.

 

[DJPS2]

If Activision raises their prices, they are out. Simple as that. Stocks will drop, people will be fired. The public will not stand for $60 games that don't have some sort of gimmicky shit with them, like "limited edition" packaging, or a bonus DVD. $50 will remain the ceiling for games.

Anyone that launches a console at a greater than $300 price is out for good. They will be banished from the console industry. 3DO, anyone? Even the holy Neo-Geo couldn't gain anything more than a niche market. It still amazes me how long that system was supported.

The public "won't stand" for $60 games? Says who? You? At some point, somebody is going to try to break the $50 myth and try to get a little more profit. I really see Madden 2006 is being the litmus test for price increases. Big IPs will sell copies, regardless of price increases. Believe me, I don't like the idea of having to pay $5-$10 more for my games, but I'm also realistic enough to understand that there are other factors involved.

I really don't know if the $300 ceiling is as solid today as it was a generation or two ago. Granted, you can look at the failed attempts to break the $300 barrier (CD-i, Neo-Geo, 3DO, Saturn) and assume that people won't pay more... but things have changed since then. Gaming appeals to more people than ever before, and the demographic is different. Gaming is embraced by more people with jobs and income now, so they can realistically afford to spend more for a "better" game console if they so choose.

 

[Shawn]

does anyone here sincerely believe that microsoft will release their next console this year? to me it seems really, really stupid. only four years will have passed between the launch of xbox and late '05. it seems like, for the current gen, a MINIMUM of six years should pass before the release of a new console. i don't know... it just doesn't seem right. it feels like a really desperate move for xbox 2 to come out this year.

 

[Azelover]

The PS and PS2 were both initially priced at a $ 400 equivalent. I don't see why the Xbox 2 couldn't be priced the same since it's launching first in the US.

 

[Elios83]

does anyone here sincerely believe that microsoft will release their next console this year? to me it seems really, really stupid. only four years will have passed between the launch of xbox and late '05. it seems like, for the current gen, a MINIMUM of six years should pass before the release of a new console. i don't know... it just doesn't seem right. it feels like a really desperate move for xbox 2 to come out this year.

It's the only concrete way they have to gain ground on Sony.And it's important to them since they're pratically competing only on two markets (USA and Europe) against the 3 markets of Sony.
They only have to hope that Sony won't do a surprise launch in Japan next Christmas too.

 

[koam]

At least one major publisher (Activision) has gone on record saying it plans to increase wholesale prices on its AAA games. Others will likely follow its lead. That will probably result in retail prices jumping $5 to $10 per title.

Cool, so activision is not bumping the price of its games.

 

[The End]

It's the only concrete way they have to gain ground on Sony.And it's important to them since they're pratically competing only on two markets (USA and Europe) against the 3 markets of Sony.
They only have to hope that Sony won't do a surprise launch in Japan next Christmas too.

i'm betting for a "surprise, Sony cuts a deal with EA not to do a real next-gen madden until '06"

because, you know, it wouldn't be in EA's best interest to spend a fortune to develop an next-gen version of madden that'll only go to Xeon early adopters.

 

[HokieJoe]

Game developers/publishers will charge ONLY what the market will bear. That is, if they want to remain financially solvent. Let's face it, they don't have the legal advantages of the member RIAA companies, so collusion isn't a likely result- especially at those kind of prices.

Early console adopters will pay more. However, I think the pricing scheme will roughly mirror the current console generation as time goes on. I doubt we'll see $149 Xbox 2 consoles though.

 

[rastex]

All you yougins bitchin' about $50 price points ($70 CDN) obviously didn't do any gaming in the 16-bit days. I remember paying $100 each for MK2, Street Fighter 2 and Killer Instinct. And that was like 10 years ago, so in REAL money terms that's more like 120 (totally guessing the inflation rate here). So you people talking about "the market cannot bear more than $50" don't really know what you're talking about. I mean, combine the fact that the average age of gamers was significantly lower back then means that we're paying far lower prices when we have more money!

 

[Myoclonic Jerk]

Activision ? AAA games ?

 

[The End]

All you yougins bitchin' about $50 price points ($70 CDN) obviously didn't do any gaming in the 16-bit days. I remember paying $100 each for MK2, Street Fighter 2 and Killer Instinct. And that was like 10 years ago, so in REAL money terms that's more like 120 (totally guessing the inflation rate here). So you people talking about "the market cannot bear more than $50" don't really know what you're talking about. I mean, combine the fact that the average age of gamers was significantly lower back then means that we're paying far lower prices when we have more money!

Man, Chrono Trigger and Ogre Battle cost me $70 American.

That said, the average price of games is under $40 for a reason, because that's what the market will support. Other than a hanful of franchises (GTA,Halo, Madden, FF), most people will just wait till the price drops.

 

[PC Gaijin]

All you yougins bitchin' about $50 price points ($70 CDN) obviously didn't do any gaming in the 16-bit days. I remember paying $100 each for MK2, Street Fighter 2 and Killer Instinct.

$100 American or Canadian? 'Cause if you paid $100 American for Street Fighter 2, you were robbed :lol Although I do agree that compared to earlier eras (and taking into account inflation) games and systems have been getting cheaper over time.

 

[FitzOfRage]

All you yougins bitchin' about $50 price points ($70 CDN) obviously didn't do any gaming in the 16-bit days. I remember paying $100 each for MK2, Street Fighter 2 and Killer Instinct. And that was like 10 years ago, so in REAL money terms that's more like 120 (totally guessing the inflation rate here). So you people talking about "the market cannot bear more than $50" don't really know what you're talking about. I mean, combine the fact that the average age of gamers was significantly lower back then means that we're paying far lower prices when we have more money!

I wouldn't say they don't know what they're talking about. Not surprisingly, when games were that expensive, far less people bought games. The market was less than half the size as it is today.

Perhaps saying the market can't bear more than $50 isn't quite accurate, but if game makers go there, more than likely the market that will be left will be significantly smaller.

And the thing about being older is not only do you have more money, but you have a better appreciation for the value of money (or at least you should), and a lot more responsibilities. The idea of "since I paid $100 when I had less money, I should be fine even paying $90 now since I have more money" doesn't really work if you weren't getting a good deal at $100.

 

[Brannon]

If this is all true, then I'll be captaining the USS Patience-Virtue for a long time, especially if Microsoft wants to fuck up the market with mutiple versions of a console. I'm almost getting Sega 32X flashbacks from this.

 

[vitaflo]

does anyone here sincerely believe that microsoft will release their next console this year?

They will release it this year.

 

[Bauer Action Hour]

I'm a cheapass gamer at the $50 standard price, waiting around for price drops and/or used versions for all but the best 3-4 games each year. $60 pricepoints will only force me to wait for those 3-4 games to get down to $30 used.

These companies are going to shoot themselves in the foot...

 

[PG2G]

i'm betting for a "surprise, Sony cuts a deal with EA not to do a real next-gen madden until '06"

because, you know, it wouldn't be in EA's best interest to spend a fortune to develop an next-gen version of madden that'll only go to Xeon early adopters.

Well, EA already confirmed what... 4-5 titles at or around launch, right? Besides, they'll be using renderware for everything now. The fortune they spend creating a next-gen version of madden on Xenon is the same money they'd have to spend creating it in 2007 for PS3, with no discernable differences in end product. They're going to spend a fortune to do it sometime, why wait?

 

[Of All Trades]

If this is all true, then I'll be captaining the USS Patience-Virtue for a long time, especially if Microsoft wants to fuck up the market with mutiple versions of a console. I'm almost getting Sega 32X flashbacks from this.

There's nothing wrong with multiple versions of a console so long as the "better" versions only have non-gaming additions (or very limited gaming additions, like custom soundtracks). A "gaming" Xbox2 and a "media center" Xbox2 could work perfectly fine, especially if the "better" version incorporates things that aren't very common yet (like tivo capabilities or that IPTV thing).

I seriously doubt MS is dumb enough to fracture their own userbase by creating a have/have-not situation.

And I think Activision is bluffing in the hopes that other publishers will follow suit. Off the top of my head, I can't think of any Activision IP that has enough of a fanbase to make $60 games profitable. But if they can sucker other publishers into following along...

 

[Jesiatha]

Media business people amaze me. I buy SO much more media (games, CDs, DVDs) at low prices ($20-25, $10-$13, and $10-15, respectively) that they are making way more money off of me. Printing and distributing each stupid disc costs maybe a couple dollars. Why not make me happier with your system (because I get more entertainment for the same cost), help spread the revenue among all titles so we don't end up with 2 titles a year that make money, and get more total profit out of me?

ARGH!

(I'm still hoping that this rumor is untrue, and the success of NFL2K5 this year will prompt companies to release more games at $20)

 

[Pimpwerx]

If they raise game prices, they'll lose a lot of cheapskates like me. Then again, I'll probably just keep buying games used or on special. I haven't paid more than $30 for a game since I got the 2 for 1 SC/POP deal at BB last year. And that evened out to about $25 per game. Most of the time, I'm paying $10-20 per game. Gaming's dropped down the ladder for me recently, so I can't justify paying that much for games again. Hardware? NP, but not the games. PEACE.

 

[nitewulf]

who's gonna pay $60 for a game from Activision? may be i'll pay that for the next FF game, but not an Activison game. even at that it's a stupid idea. i love my ps2 and xbox mainly because of the huge amount of cheap games that are available.

 

[The End]

exaclty. I can justify spending $60 on a 100-hours RPG, but I can't think of an Activision property worth that much.

 

[rastex]

I don't think (maybe just wishful) that the majority of games are going to raise in price, it'll be the cream-of-the-crop blockbuster selling games that will have their price raised. I think we know the three that were released in 2004 that would fall into this category. And personally, I welcome a tier-based pricing scheme. People point to DVDs as a comparison of cheap media, but then you have things like the Criterion collection which go for a very high premium price. If I have to pay $60 for Halo 3 so I can buy Crimson Skies 2, Top Spin 2 and Amped 2 at $30 at launch then I'm not complaining (of course even if those 3 games were released at $50, after a month they'd be down to $30 )

 

[DJPS2]

I don't think (maybe just wishful) that the majority of games are going to raise in price, it'll be the cream-of-the-crop blockbuster selling games that will have their price raised.

That's exactly what my take is. Activision will probably sell their "big guns" like Tony Hawk and X-Men for the "premium" amount... then decline from there for lesser IPs. EA will likely charge the "premium" amount for Madden (natch) and their bigger movie tie-ins. I'm sure that Squeenix is just frothing at the mouth for these changes... people will pay $60 for Final Fantasy games-- hell, they might even pay more!

 

[mCACGj]

I think more companys should really think about doing collectors editions. That way, you can charge more, but also have the cheap version. Big name titles like GTAs, Halos, Marios, Zeldas, Metroids would sell tons of collectors editions, hell a little added art work, a little making of movie, or whatever and you practically have me sold on an extra 5$ dollars(along with a lot of other people). Face it, we're suckers.

 

[DJPS2]

I think more companys should really think about doing collectors editions. That way, you can charge more, but also have the cheap version. Big name titles like GTAs, Halos, Marios, Zeldas, Metroids would sell tons of collectors editions, hell a little added art work, a little making of movie, or whatever and you practically have me sold on an extra 5$ dollars(along with a lot of other people). Face it, we're suckers.

Agreed. I'm a sucker for Collectors' Editions of just about anything game-related.

 

[Vortac]

Think

and how amazingly useful that would be.

Hey, you don't have the Snoop Dogg CD? Here, use my HD. Ok, now put PGR3 back in.

 

[ZombieSupaStar]

ill spend 60 on a tony hawk game as they are always fun (and yes THE same now STFU, moving on...), other than that what "AAA" franchises does activision have? Spiderman?


...maybe call of duty?