Bloomberg: taking into account inflation, prices for games could exceed $100 by 2020

The increase in base prices for games is one of the most discussed topics at the launch of a new generation of consoles. According to Bloomberg, Sony wanted to raise the price above the stated $70, and taking into account inflation, prices this year could even exceed $ 100.This year, several major publishers, including Take-Two and Sony, announced an increase in prices for individual games to $70.

This applies mainly to new titles and large-budget nextgen projects.

Many users reacted negatively to this step, especially against the backdrop of a new economic crisis in the world. At the same time, in its new material, Bloomberg reports that Sony initially considered an even bigger price increase before settling at around $70.

How did the prices of video games change?The standard of $60 per copy, familiar to many gamers, was first set by Nintendo back in the 90s.

At the same time, in 1994, along with the release of the first PlayStation, Sony managed to reduce prices to $50, since discs were cheaper than cartridges in production.

This bar lasted on the market until the mid-noughties, when the Xbox 360 and PlayStation 3 appeared on the market. Then the gaming companies again set a base cost of $60 per copy, which remained unchanged until this year.

How do publishers justify the new price?As the main arguments in their defense, gaming companies cite inflation and the growing cost of developing AAA projects.

“We don’t have any pricing strategy. The value of our games is much higher than the prices we ask for them,” says the head of Take—Two Strauss Zelnick.

Electronic Arts, although it will provide owners of copies of FIFA 21 and Madden 21 with the opportunity to upgrade to versions for new consoles for free, may raise prices for future projects of its franchises. “All we know is that the cost of game development continues to rise,” said Blake Jorgensen, COO of the company.

A Sony spokeswoman in a conversation with Bloomberg also said that the price increase “reflects the growing cost needed to develop ambitious games.”

At the same time, Capcom will decide to increase the price for each individual game. “We believe that the prices of games should be determined by how much buyers are willing to pay for a quality product, and not by how much money we spend on its production,” said Kenkichi Nomura, the company’s chief financial officer.

Could the games cost even more?

Bloomberg showed on the graph how much games would cost now if their prices had changed since the early 90s in proportion to inflation. So, instead of the same $60-70 today, AAA titles would have to be sold for $116.

Of course, most people would not be willing to pay such a sum for one game. At the same time, some experts believe that platform holders like Sony and Microsoft can afford to keep the price of some of their exclusives at around $60 to boost console sales.

Also, large companies will continue to look for and develop other ways of earning money. This can include the sale of special editions, additional content, in-game purchases and a subscription model like the Xbox Game Pass.

Also on the topic:

• A number of games for Sony PlayStation 5 will cost $70. Now it’s officialCall of Duty is the first blockbuster for a new generation of consoles with an official price of $70
• Prices for games have increased in the Russian PS Store
• Is there any news?