The return of the $70 video game has been a long time coming
arstechnica.com
arstechnica.com
The question is, who paid to publish the press release? Pushing a press release through a PR firm that would get you wide coverage like this ain't free, and it doesn't happen on its own.
I haven't seen anybody asking that question or pointing out the conflict of interest.
> Kyle Orland is the Senior Gaming Editor at Ars Technica, writing primarily about the business, tech, and culture behind video games.
I couldn't find the IGN mirror of the article, but I did find this article which points in the other direction:
https://www.ign.com/articles/why-70-ps5-and-xbox-series-x-ga...
I think this is more a result of NBA2k's decision to charge $10 more for PS5 Xbox Series X titles.
A dozen journalists arguing in the same week that it's about time we pay more for AAA games... Is more than a little odd.
And it’s partly because a tweet about it got very popular this week too. There’s definitely industry pressure but it’s not a work like come on.
https://duckduckgo.com/?q=site%3Aforbes.com+The+return+of+th...
https://duckduckgo.com/?q=site%3Aign.com+The+return+of+the+%...
Here's another iteration of the PR 'news' piece:
https://www.washingtonpost.com/video-games/2020/07/03/next-g...
I'm really impressed by the reach. Hats off to them, if it's not the case of a coincidence.
So with that disclaimer, any time someone (like the author) says that games have never been cheaper at the $60 price point, I like to point out that the AAA game developers have never turned higher profits than they are right now. Activision Blizzard is reporting over 4 billion (yes, ‘B’ billion) dollars in profits.
> It's time
If this author really thinks that a price hike of the minimum game experience they’re selling is going to stop any of the predatory behaviors, they’re being incredibly naive. AAA game developers don’t just want your money, they want as much of your money that they can squeeze out of you.
Fifa - the only game confirmed at this new price point so far - is particularly bad about this, with individual players occasionally spending tens of thousands of dollars on this game.
Even the Witcher 3 sold a season pass for $30 prior to any expansions being released. And Cyberpunk 2077? There’s a $260 edition and a $400 edition. There’s no official word, but it’s looking likely that there will be a season pass sold for it as well.
The second is when games are changed in an attempt to get more money. Anytime an XP boost is sold, it’s because the grind has been made intolerable. Anytime powerful characters/abilities/gear is sold, it’s because it’s been made harder or unreasonable (or impossible) to get through the game itself. When skins are sold, they’ve been removed as a natural reward from the game itself.
Games are being actively ruined by these money-making tactics.
If there were nothing but games that required XP Boost, that'd be one thing, but it isn't. I can't even keep up with the amount of great AAA and indy games and I probably game anywhere from 20-60 hours a week. My backlog of games to play is nearly 80 deep.
In 2019 ATVI made $1.5B profit on $6.5B revenue, down YoY from the previous year. During the same year Google made $34B on $161B of revenue, up YoY from 2018. Apple similarly had a gross margin of about 38% on $89B of revenue.
Relative to companies that actually are making profits hand over fist, I find it hard to muster any outrage toward labor-intensive entertainment businesses.
But, even with “only” $1.5B profit they’re doing pretty amazing - that’s just shy of a 25% profit/revenue split. That’s better than Google, which I’m sure you realized.
And if billions of dollars of profit isn’t “hand over fist” money, I don’t know what is.
The revenue of big game publishers comfortably puts them in the top 10 most profitable media companies, competing with massive conglomerates.
Games also exploded in popularity, the industry is huge now, games can make a billion dollars in a matter of days.
AAA doesn't need a price increase, it makes it up in volume... and fucking IAP.
Then I have to remember that in 1982 I paid $50 for a copy of Atari 2600 Pac-Man. That's $135 today.
So maybe I should shut the hell up.
Federal minimum wage in 1982(2020 dollars): $3.25 ($9.11)
Federal minimum wage in 2020: $7.25
So that copy of Pac-Man was 15.38 hours of minimum wage labor in 1982, a $70 game today is 9.65 hours of labor. Minimum wage is slightly lower today than it was in 1982, but video game production has apparently become significantly cheaper.
A larger video game market has created economies of scale that make larger development budgets viable.
These days you pay between $5.00 and $6.00 for the same beverage with some establishments charging way more that.
But they totally could, and should. These games are the cheapest and longest form of entertainment around. The market can bare more, it is just a matter of time before shareholders force studios to put that theory to the test.
Games cost a fixed amount to develop regardless of how many copies you sell. How many copies did developers sell 20 years ago compared to today? If you sell 2X the copies, the game can cost half as much and yet the profit would stay roughly the same.
Well that's bonkers in the first place.
I usually buy games below $20, many below $10. If it takes the AAA title a few years to get there, then this is fine. It gives them time to remove the nastiest bugs and combine all the extensions into a Game of the Year edition.
Are you implying that hiking up the base-price of a game will stop companies from wanting post-sale monetisation? That seems optimistic :P