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[N4G] Are Video Games becoming too Expensive?

post #1 of 102
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I was in town the other day, checking out the January sales and i decided to take a look in GAME to see if there were any good games on offer. I browsed the charts and i was shocked to see that Call of Duty: Modern Warfare 3 was listed as £49.99. Is this price justifiable?

I remember 5-10 years ago i could pick up a PS2 game for £30 when it was a new release. Has gaming really advanced that much causing prices to rise by 67%?

Many people think that the increase in prices in justifiable as the price of development has increased as customers demand better quality, better servers and advanced engines in the games.

Let's use some examples:
Quote:
GTA: Liberty City Stories cost around $10 million to develop and produce by Rockstar. It ended up selling 8 million copies, lets say all at retail price of $50. Gaming companies sell their games to retail companies for around 2/3 the retail price, so that is $33 per copy and 8 million copies sold lead to sales revenue of $264 million. Rockstar generated about $250 million profit from GTA: Liberty city Stories.

GTA IV cost $100 million to develop and produce, making it the most expensive game to develop, a whopping $20 million more than Gran Turismo 5 which sits a the second most expensive. It sold 22 million copies and sold to retail companies for $50, producing sales revenue of $1.1 billion and a profit of near enough $1 billion.

Source: http://n4g.com/news/917533/are-games-becoming-too-expensive


Rockstar has increased it's profits by $750 million by charging higher prices now. So are gaming companies charging more in order to cover the costs of development and maintaining the game or are they trying to make a much money as possible? The aim of any business is profit maximisation, Rockstar and over developers are just doing what a business should.

There has also been a dramatic increase in the number of gamers meaning that more and more people are willing to pay the high prices of new releases.

In my personal opinion games should be cost £40 maximum as this means more gamers are likely to buy it and the gaming companies will still make huge profits.

So what do you guys think? It is right that gaming corporations are charging £50 for some games now or do you think they are exploiting us? Please reply below with your thoughts and opinions.
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post #2 of 102
Two words: HELL YES.

Very few games are even worth $30, let alone the $60 most of them are priced at. They claim it is all the pirating, but I call BS on that. It is greed, nothing more, nothing less.
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post #3 of 102
Formatting error in posting: [N4G] Are video games becoming too expensive?

OT: My gripe is with the DLC pricing and ridiculous DRM increases in price that really don't help to prevent piracy anyhow.
post #4 of 102
I remember reading an article somewhere that said video games have actually come down in price. I still remember buying Donkey Kong 64 with the memory expansion pack that came to $100 after taxes for the game. Actually I still remember that day... I was buying it at Walmart and the cashier put it in the bag of the lady in front of me. So that lady walked away with a $100 game without realizing it, and I just went to get another game.

I remember Nintendo games always being extremely pricey, at least $70 brand new and PS2/GC games being a lot cheaper at $50.
Edited by SkillzKillz - 1/8/12 at 9:38am
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post #5 of 102
Greed.
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post #6 of 102
I remember when NES games were $100. For a AAA title for 60 is a great deal.
    
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post #7 of 102
It's definitely down to greed. However i avoid overpriced high street stores all together now.
post #8 of 102
I don't know, while I wouldn't mind cheaper prices I really can't complain. As others have said the N64 prices were much worse. It was tough being a ten year old in those days trying to raise funds for a new game lol.
post #9 of 102
Quote:
Originally Posted by SkillzKillz View Post

I remember reading an article somewhere that said video games have actually come down in price. I still remember buying Donkey Kong 64 with the memory expansion pack that came to $100 after taxes for the game. Actually I still remember that day... I was buying it at Walmart and the cashier put it in the bag of the lady in front of me. So that lady walked away with a $100 game without realizing it, and I just went to get another game.
I remember Nintendo games always being extremely pricey, at least $70 brand new and PS2/GC games being a lot cheaper at $50.

This.
post #10 of 102
No, it's not. Unless you're playing games that have tons of DLC.

In the days of the NES, games ranged from 60-70 dollars (and, let's think back, the dollar was worth a LOT more, the economy was much better then too).

Fast forward to today and most games are anywhere between 39.99-59.99. Not only does our economy suck (worldwide) but so does the worth of our money. Considering that, no, gaming has become cheaper if anything.
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