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by nuclearcookie 1834 days ago
What would you consider a fair price for a game? Are you talking about games in general or just games on Oculus?
2 comments

I’m definitely a minority in this regard, but I completely support increasing the price of games across the board. Development is more expensive & involves more people now. The cost of games has been $60 for what, 15 years? One additional problem is that everybody wants to cash in on subscriptions and micro transactions for continuous money, even when you’ve already paid “full” price.
> I’m definitely a minority in this regard, but I completely support increasing the price of games across the board. Development is more expensive & involves more people now.

But that’s only one half of the story. The other is how tools, assets, hardware, knowledge and training have become much more affordable, streamlined and widespread.

What used to be a somewhat niche industry with barely any formal entry ways, is now a massively formalized industry dwarfing even Hollywood.

Just the publishing side alone saw a massive falling of gates with the emergence of the indie scene. IMHO there are very real economies of scale effects to this.

I don't know if I agree with this. Not that you're wrong but I don't think it's the full picture.

15 years ago games were still largely physical. That $60 included the physical games, cases, manuals, distribution, warehousing, etc. These days everything being digital companies don't have to pay that anymore. Sure there's a commission you have to pay on Steam/EGS but I highly doubt it's close to what having a physical distribution method cost.

So the way the $60 pie is split up today is totally different, and I imagine a much, much larger portion of that goes to the developers.

> The cost of games has been $60 for what, 15 years?

Not really. $60 is an introductory price, but most games at that price launch with at least one $80+ special edition and are supplemented with $40+ of post-launch content with much higher margins than the original game. And that's before considering some of the more contentious monetization practices like micro-transactions and "loot boxes". In many cases devs and publishers slash the initial price of a game shortly after launch (usually a year or two) to increase player counts, because more players generally means more sales of post-launch content.

And that's something else nobody ever seems to bring up when discussing the stagnant price of video games - the ever-increasing sales volumes. The cost of producing additional copies of a game is negligible, especially with the rise of digital distribution, so each copy sold after breaking even is pure profit. Since there is basically no production cost, developers (in theory, at least) dump part of their profit into the development of their next title. This allows them to stay competitive and results in skyrocketing budgets. The high budgets are a sign of a successful industry, not a struggling one.

Despite the increasing budgets and seemingly stagnant launch prices, video game developers are more profitable than ever. It's because they are selling more copies than ever and have figured out plenty of ways to bring in extra revenue after the initial sale. If you ask me, things should go the opposite direction. A huge selection of cheap, high-quality indie titles have affected the relative value of "AAA" titles, to the point where I rarely consider spending full price on a game launched at $60. Either way, the industry has recently been dipping its toes in the water with a new $70 shelf price. We'll see if it sticks.

The problem with selling games is that they depreciate -- because Facebook doesn't control competition.

The benefit of ads is that ad space appreciates -- because Facebook controls supply, and revenue follows inflation and demand.

So as GP alluded to, this can be summarized as Facebook saying "We'd like to have bigger future profit margins on VR."