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by CivBase
1834 days ago
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> 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. |
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