Why game prices shouldn't be increased in the next generation
By ipaqi 27 Comments
Today, Wedbush Securities analyst Michael Pachter suggests Next Gen videogames will be priced at $70. For the sake of the core industry I so dearly love I hope that isn't the case. The world economy has yet to recover from 4.5 years ago, much less the US economy, on which much of the Games industry's future is dependant.
Adding 10 bucks to the price of video games will completely destroy all but the most top-tier franchises, potentially kill off non-indie innovation and experimentation and push more and more people away from traditional games (those which will cost 70$) and towards free to play model games, mobile and flash-esque games.
If anything, the industry needs to make a huge correction, price-wise. Make games an affordable hobby so that people don't feel fiscally pressured to avoid gaming or at least avoid paying for what they're playing (legitimately or otherwise). Instead of microtransactions or DLC being used to squeeze money out of already paying customers, a slightly reduced profit margin per sold game could very well result in a significant growth in non-used game sales, which will increase the profit margin on the title as a whole, as well as provide a larger mind-share when sequels are to be made.
Another option would be to create a more flexible pricing model, in which people bring out games in $5-20 for the basic indie titles, $25-40 for A or AA games, and $45-60 for AAA games. There are games that simply won't make their money back on initial release due to an uncertain buyer's market and the confounding "$60 for everything" standard in today's industry.
What's happening nowadays is the industry cannibalizing itself. This results in lesser products being put out on shelves, and more people being put out on the street.
The games industry can't live on with this pricing model, which doesn't allow for varying qualities of game to coexist in the market. A more flexible industry that will allow a more flexible pricing model will be crucial if the pay-to-play portion of our industry wants to grow instead of shrink in the next generation of consoles.
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