Categories: BusinessGaming

Analyst argues players’ willingness to pay $70 for next-gen titles

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Previously announced as the average launch pricing for next-generation games, an analyst in the gaming industry claims that players would be “happily” shelve $70 for those games.

The notion that next-gen games would be priced higher than they are today has been a topic of discussion recently. Beginning with a leaked sticker price for NBA 2K21 until Sony’s subsequent corroborative statement on the matter. The latter specifically referring to “premium” titles that are bound for release on the new console.

The Xbox Series X/S being an intuitive inclusion as a direct rival to Sony’s up and coming flagship gaming console.

Rising Cost of Game Development

As is true in any business, the issue is blamed on the rising cost that comes with generating triple-A games. Some even going as far as millions of dollars and even taking many years in the process. Which, thus, increases the risk as companies shelve tons of cash in titles that may not always guarantee to become a hit. Or, more importantly, earn the company profits way beyond the invested capital.

Despite this odd depiction in the gaming industry, however, it is not necessarily always the company that is struggling in the grand scheme of things. If anything, it is the employees, who do the heavy lifting, who gets the shorter end of the stick. All the while revenue records and CEO bonuses are skyrocketing.

Take-Two’s CEO believes that doing a price hike for “premium” titles on next-gen consoles is actually justified.

An Analyst Weighs In

NPD analyst, Mat Piscatella, however, is more discreet in the situation, as someone who sees it in both sides of the equation.

On the one hand, Piscatella understands why game companies are opting for the price increase, citing excuse X, Y, or Z. On the other, he claims consumers are likely to protest on the pricing. But something they would still be paying regardless.

Not taking a pro-consumer stance, though, Piscatella himself justifies the claim for future increase in gaming pricing. Citing that certain titles, particularly “luxury” ones, are actually worth more than their asking price. This statement is open to interpretation. But it could also mean that some games deserve more revenues due to their perceived value in the market.

Although many consumers won’t be happy with the idea of paying more for games in the future, there’s a silver lining to the issue. The solution being the rise of game subscription services that could see people having access to games while not technically own them. That is, with the only condition that the consumer base maintains their subscription for as long as they can.

Image used courtesy of Mat Piscatella – NPA Analyst, US Video Games/YouTube Screenshot

Jermaine D. Delos Santos

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Jermaine D. Delos Santos

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