Topic: Next Gen gaming gets more expensive?

[Famicom]

IGN reports that Activision plans to raise it's next gen game prices to $59.99 as their standard, and expects the industry to follow suit. Just as well, consoles are expected to start out at $500. With games and systems getting more and more pricey it's gonna get much harder to get two or more systems to play the games you want (if anyone buys into such pricey devices anyway). I hope Ninty and Rev get real lovey-dovey with third parties in the future....

[kennyb27]

I know I won't have $500 to spend when the next systems come out.  Hopefully, that's just overexaggerating.  I guess we'll see when Microsoft announces the launch information later this year.

[Hostile Creation]

Nintendo, please stay affordable.  I'm in college.

[Spak-Spang]

Wow.  I think Nintendo will actually be moving to stay affordable.  It has been apart of Nintendo's marketing plan to appeal to new gamers.  If the product is too expensive fence sitters, and new gamers may not buy the cost of admission.  If Nintendo stays at the $250-300 price point and the other systems are at a $400-500 price point, Nintendo can gain alot of marketshare back.  Who cares if the other systems add HD DVD playback and such out of the box.  $400-$500 is alot to ask for a game system.  

Also, if Nintendo sets a game price rate that is affordable as well then Nintendo can positively ensure a strong launch and future for Revolution.  

I am not too worried about this information...but it is true, I will only own 1 system next generation.  

[Bill Aurion]

I feel that Ninty will once again have the cheapest console (250 most likely) with 50 dollar games (1st party, that is)...

500 dollar consoles is just outright laughable...

[darknight06]

You know, with the production values of some of the games coming out these days I'm kinda surprised they're not at $60+ already.  

About the $500 consoles, didn't PS1 and Saturn launch for that much or was it at least rumored to launch for that much at that time?  No matter, if that's the estimated price for next-gen consoles, unless Revolution is $200 to $250 I think my gaming may go to being just strictly handheld.  

[Don'tHate742]

"unless Revolution is $200 to $250 I think my gaming may go to being just strictly handheld."

Or to rioting and looting!!!!!!

of course, putting some money down to help Nintendo....while your rioting.....and looting...hmm, maybe not.

[Talon]

Higher game prices = Less games people buy

Could be beneficial making developers work harder to create better quality games. Might also mean publishers dont publish as many games. Might also force smaller developers out of business cause they cant market their games as well as the big name companies or cant produce the same quality games as the big name companies.

It is inevitable for a price rise, unless development costs can be reduced somehow.

Quote
About the $500 consoles, didn't PS1 and Saturn launch for that much or was it at least rumored to launch for that much at that time?

If I remember correctly in Australia the PS1 launched at a massive $1000AUS price tage but i think it was reduced quite quickly.

[Spak-Spang]

Well I think we got here because of a few reasons.

1)Developers making games for all three consoles takes more money, more time and resources specially when they are trying to release them simutaneously.

2)Higher Production values mean higher cost games.  Games are not requiring larger budgets.  Not quite up there with movies but they are slowly creeping up faster and faster.

3)The number one issue though, is that games are not selling enough to make money with the increased budgets.  I think this is due to alot of reasons.  However, the biggest is the flood of games and systems there are on the market.  

Each month you it seems you are getting atleast 2 new games, more if you own multiple systems.  Heavy release months even more.  Microsoft says that within the first 3-4 months  of the Xenon's life that it will have 30+ games out on the market.  That is just too many games for everybody to play, and they are all competing with eachother for marketshare.  What will happen is less of every game will actually be bought.  This is becoming more true with the fact that renting games more and more viable option.  You can rent a game for a month and beat it for only $10.00.  Why buy?

Unfortunately, raising the price is not the answer.  Instead, pulling back development on several games, and just making 2 really good games a year is a much viable option.  Raising the price will just make even less people buying more than one game every couple of months.  Its stupid.  You never raise the price to attract more audience.  

That is why if Microsoft and Sony raise the price to $400-500 dollars for their consoles they will lose marketshare.

[RickPowers]

Just a reminder to everyone that over the past three generations, Nintendo has not released their console at a price over $200.  The Nintendo64 was originally to launch at $249, but was cut to $199 three days before launch.  I fully expect Nintendo to stay at that price point, as it may be their best shot to regain market share.  

[Spak-Spang]

Rick, thats for that tidbit.  Oh, and your icon looks mean...specially with no nose.

[Bill Aurion]

That may be true, but I guess it really depends on the expense that Ninty's new innovation(s) entails...Not to mention the possibility of a hard drive...

[Pale]

Microsoft and Sony's bread and butter is the casual gamer....  If they release a console at 500 bucks I would HAVE to think that they would shoot themselves in the foot.  The X-Box didn't even really start selling until it got away from the 300 dollar price point.

[couchmonkey]

Remember when everyone was saying that the PSP would cost four or five hundred dollars?  With the price of PCs coming down all the time, I think the notion that the next round of consoles will cost $500 is preposterous.  Then again, I think the price of iPods and their accessories is presposterous too.  Even so, I don't think this is going to happen.

Now game prices going up makes more sense what with the price of producing them rising, but I don't really like it.  I actually think it's a step in the wrong direction...video games have always been really expensive compared to other mediums, and while there do seem to be more deals on new games than there were 10 years ago, I still don't think they're at a price where ordinary folks will go out and buy a game casually.  My girlfriend has a GBA and half a dozen games, and she got practically all of her games from me as gifts.  While the average game offers a lot more entertainment per dollar than other mediums, it's still prohibitively expensive.

[Spak-Spang]

CouchMonkey:  I would really like to know if Sony is really losing money on the PSP and if so how much.  I am like you.  I just don't believe any business would market its product out of mass market appeal...and that is drastically out of mass market appeal.

Also, game prices going up IS definately a step in the wrong direction.  Its like the US Post office deciding to raise the price in stamps every year.  Does that make you want to use the Postal Services more or less.  Obviously, less.  I know it costs more and more to send letter out, but you are shooting yourself in the foot.  I will never send anything via mail unless I absolutely must.  I have too many other options to get my messages out.  

With game prices going up, I will not buy as many games.  I will only buy the games I feel I must own, because they are enjoyable to me.  During the SNES age I bought Nintendo games, 3rd Party games and such.  During the Nintendo 64 I dropped to mostly just Nintendo.  Now I am down to only the best Nintendo published Gamecube games, and if prices go up, I will buy even less.  If prices were to drop though, I would be willing to invest in the best 3rd party games as well.  

I am sure there are several people like this.  I am on a budget, and I think its time companies begin to realize that.  

[Pale]

The other thing that makes this so out there is that game prices have generally gone down this generation.  There are so many more 20-30 dollar games than there were before.  Things like Capcom's across the board cheaper prices and Namco releasing a game like Katamari at 20 buck are great for the consumer.  I think the biggest problem with most entertainment items is that companies rely on this fixed pricing schemes.  DVDs should be 20 bucks when they come out, even if its a B or straight to video movie.  (This even seems to be rising)  Thats just stupid.  Nintendo can release the new Zelda at 60 bucks, but they sure as hell can't release Donkey Kong Jungle Beat at 60 bucks.  Jungle Beat isn't a bad game, but it just isn't the type of game that warrants that high of a price.  If Activision releases both Doom IV and Disney's Generic Extreme Sports Adventure XVI at 60 dollars each they are going to be in for a rude awakening.  

[Ian Sane]

Well the only Activision game I own is Tony Hawk 3 and they sure milked that franchise to death pretty quick so I'm not missing out on anything if I refuse to go along with Activision's price hike.  I believe EA has talked about this too and we all know I wouldn't buy one of their games of a cent.

Here are some contributing factors to rising costs:
1. Licenced music.
2. Celebrity voice acting.
3. Franchise licencing such as movies or sports leagues.
4. Releasing like 20 games per year with each of those games being released on five platforms at once.
5. Striving for realism with graphics.

Basically the costs are up because of all the bad design habits that turn me off from about 99% of American published games.  The real solution is to lay off all the superficial crap, make less games a year, focus on making those games great, and train the casual fanbase to appreciate substance over flash.  Of course this requires effort and legitimate talent which publishers like EA and Activision just don't have so they're expecting us to pay for their short-sighted design.  Well I'm not going to.  Games in Canada cost $70.  Sure $60 for the US doesn't sound that terrible but it's going to really affect the non-American markets.  I'm not paying $90 for a game.  I refuse to pay over $60.  I can wait until price drops or buy used games.  Hell in the age of mass piracy price hikes just don't fly anymore.  I'm not saying piracy is a good thing but it's an option a lot of people use and it doesn't take much to push people towards it.

I'm nervous about a lot of what Nintendo says regarding their future but I agree with their attitude that going bigger and bigger and thus more expensive is not the way to go.  I'm confident that they can still give us $50 games that blow the sh!t out of anything EA or Activision makes.

If you don't want to pay $60 DON'T.  YOU'RE the consumer.  YOU'RE in charge, not them.  Buy what you want on your own terms.  They can only get away with raising prices if you let them.

[Spak-Spang]

Ian Sane:  Your right.  We are in charge, and if all banned together then yes we would see a change.  However, if the entire industry goes this route then it will be harder to get our voices heard.

[ThePerm]

My theory is gamecube is getting a price drop really soon.....why? it isnt selling. Last year they lowered the prices and gamecube jumped up to number 2 in a hurry...i think they could do the same thing...even including a pack in game like ssbm would drive sells even higher.....though the packin sounds like a little much for nintendo...it could happen....I just think Nintendo should try an agressive tactic like that. How much market could you steal with a rediculously priced console and a packin game? And what if it had a zelda demo...or some revolution vids?  

[RickPowers]

Sony is losing what I have only been able to conclude is a "substantial" amount of money.  I have not been able to dig up specific dollar figures ... Sony is guarding that information pretty closely, but the closest information I've gotten is that they're selling it for roughly 2/3 what it costs to make it.

[KDR_11k]

As long as this is limited to the US that's okay, games are too damn cheap in there anyway. If they expect me to pay more than 60 Euros for my games they can bloody well go to hell and stay there. I'm perfectly capable of buy alling a company. Or besiege the bargain bin.

Price hikes are suicide, the market is already barely tolerating game prices, upping them any more would scare away even more customers. "Look how much profit we're making at 50 bucks! If we sold 'em for 60 we'd make even more!". That's the same logic that stands behind the death marches seen in the industry. It's as if somebody decided the games industry is the one least worthy of capable management.

But then again we've seen a whole load of claims that "prices are going up really soon!" for over a decade now. Everybody claims "games are going to sell for more because they're more expensive to make!" but usually the answer to diminishing profits is NOT increasing the price. Games are creative products, once you have the game made you can make copies insanely cheap. There is next to no loss to production if you make increased numbers. They could sell twice as much at half the price and make approximately the same profit, as opposed to other markets where the cost to manufacture is significant.

[Bill Aurion]

"Nintendo can release the new Zelda at 60 bucks, but they sure as hell can't release Donkey Kong Jungle Beat at 60 bucks. Jungle Beat isn't a bad game, but it just isn't the type of game that warrants that high of a price."

Come on, it comes with bongo drums...If you already have the drums you can get a copy of the game for only 40 bucks...

[Pale]

I meant if they sold it without bongos for 60... thats all...

[Plugabugz]

Nintendo launched the cube here at £129 (lowest price for a new console this generation), while the PS2 and Xbob was at £199.
It is relatively expensive, taking currency into account, but that is still quite cheap. A £100 DS is impressive all the same.

The games is where it's improving: progressively, prices are falling. In the N64 days prices were £44.99. This generation, they started off at £39.99. Most shops are selling most games between £32.99 and £39.99 around here. Online it's between £29.99 and £34.99. DS games can be bought online for £24.99 or around that.

IF Activision decided to rise the price of their games it seems quite likely nothing is going to change here .

[slingshot]

I think that medium plays a big role in game cost too.  Cartridge based games just cost more- cd based games cost less.  
Not sure about Blue Ray or HD DVD based games though?