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Capcom President Says ‘Game Prices Are Too Low’
(kotaku.com)
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this post was submitted on 28 Sep 2023
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It's true, game prices today are the same as they have been for the past 40 years for AAA titles.
I can't think of an industry which hasn't had a price raise in decades.
Gaming had managed to get by on this thanks to increasing market volume as gaming became more mainstream in addition to extra revenue streams like micro transactions. But it's hitting saturation now and won't keep counteracting inflation forever
I'd gladly agree to pay more in exchange for a legally binding agreement that higher prices mean video games free of predatory monetization and reasonable pay and job security for the people making the games. But we both know that they have no intention of doing the right thing, no matter how high the box price. They're already raking in record profits while laying off huge chunks of their workforce and giving the c-suite ever-increasing annual bonuses.
They've perpetuated the lie that microtransactions were a necessity and the $60 price was unsustainable for such a long time that people actually believe it. Now they want to increase the box price while keeping the predatory monetization, having their cake and eating it too.
Games have actually gotten cheaper over time adjusted for inflation even as production costs have risen, it's crazy. A NES game in today's money would be around $160.
Game industry is bigger than movies and music combined which was not the case back in the NES era. Game industry has become a juggernaut with a huge consumer target base, and lower barrier to entry that allows for even random people being able to publish games instead of a few larger companies. Rise in production costs has been one that has been self imposed the way some studios go for big special effects blockbusters because they are targeting billions. Meanwhile like with movies you get these indie 2D and last gen 3D looking games being hits right alongside these billion dollar company attempts.
I guess one area you can look at is how niche products get priced lower like mechanical keyboards, and then once productions starts ramping up and things go mainstream suddenly these niche expensive ventures with a few fans becomes more affordable as larger quantities are now being distributed.
You same thing with tech like SSDs and hard drives actually falling price over time while capacities offered grows. Lot of PC parts actually with the exception of GPUs.
The game industry did get that much larger, but that's on the backs of only a few (non-Capcom) games that sell to the type of person who only buys a couple of games per year at most. Hardly any company is selling as many copies as Call of Duty sells year after year.
That's only true if you compare game sales to movie box office revenues, and music sales (which have shrunk considerably since they peaked in the 1990s). Once you account for home video sales, streaming, theme park revenues, and merchandise sales, the movie industry dwarfs the gaming industry. Once you account for artist tour and merchandise sales, the music industry dwarfs the gaming industry.
Wages haven't keep up with inflation, you need to account for the loss of disposable income since then.
Now compare the inflation adjusted cost of a Model T to a Corolla.
Then compare the inflation adjusted cost of a ~~Model T~~ IBM series 1 PC to a ~~Corolla~~ modern PC.
etc.
etc
etc.
Yes, but the market has grown significantly and the cost of production and distribution is very low, lower than the age of cartridges. The development is the only cost.
Lots of industries have had relative price drops over that time. Mainly electronics. An mp3 player used to be $200 minimum.
Prices definitely increased, over the last 20 years new AAA games price increased from 45-50 EUR to 70 EUR.
With inflation taken into account that would probably mean flat prices.
With the increase in the numbers of players, the spread of DLCs and micro transactions, I suspect revenue increased even with inflation taken into account.
Could it be the cost of creating game is rising faster than inflation? Or game studio just got more greedy?
When was the last time wages kept up with inflation? Games are entertainment. Money won't be spent on entertainment when push comes to shove.
What you said, but in video form https://youtu.be/VhWGQCzAtl8?si=Gj9AaniT3U46KlGF. And that came out 5 years ago. Even if we only kept up with inflation from when that video came out until now, videogames should cost $73