Why Does the Price of Games Keep Going Up?
As the cost of game development continues to rise with the advent of new technologies, the price of games will continue to increase.
Game prices are increasing due to a combination of factors, including inflation and the increasing cost of game development. As the video game industry has grown and advanced, the cost of creating games has also risen, with many AAA games now costing $100 million or more to produce.
Industry analysts expect game prices to continue to rise in the future as the cost of game development continues to increase.
It is worth noting that the cost of game development includes not only the cost of creating the game itself, such as programming, art, and design, but also the cost of marketing, distribution, and other expenses.
The cost of the technology used to create games has also risen, as developers are now able to create more detailed, realistic, and immersive experiences. With the advent of new technologies such as virtual and augmented reality, the cost of creating games will likely continue to rise in the future.
Competition Drives Up Video Game Price
Another factor that is driving game prices up is the increasing competition in the industry. With more companies and more games available, video game companies are spending more money to market and promote their products, which also contributes to the overall cost of the game and the inevitable video game price increase.
The Covid Pandemic Played Its Part In Price Increase
The global pandemic also hurt the economy and made it harder for companies to develop, market, distribute, and sell games. The shortage in the supply of video games coupled with the high demand for games by consumers complying with the global stay at home directive to contain and combat the spread of virus subsequently led to a rise in the prices of the available video game.
On the other hand, the difficulty in developing new titles at the time with high costs of production meant that those newly released games during the pandemic were sold for comparatively high prices all around the world.
AAA Games By Top Publishers Typically Priced High
Currently, the standard price for a AAA game is $70, which has been adopted by major publishers such as Ubisoft, Take-Two, Xbox, and Sony. Other publishers such as Activision Blizzard, EA, Square Enix, and Warner Bros. Games have also followed suit with games like Call of Duty: Modern Warfare 2, Star Wars Jedi: Survivor, Final Fantasy XVI, and Gotham Knights. However, it is worth noting that not all games are priced at $70, and there are still many games available at a lower price point, such as indie games or older titles.
It’s also worth mentioning that some games are offered in different pricing models, like “free-to-play”, “subscription-based”, or “microtransactions”. These models allow players to access the game for free or at a lower cost, but monetize through in-game purchases or monthly subscription fees.
The Hardware Market is also Feeling the Heat
In the hardware market, the PlayStation 5 got a price bump earlier this year across a number of regions, though its cost remains relatively steady in the U.S for now. With the release of new technologies, such as; Augmented Reality, Virtual Reality, and Extended Reality which is a combination of both Augmented Reality and Virtual Reality, the cost of hardware is also expected to witness a rise in the future.
In conclusion, while game prices may seem high at the moment, they are actually relatively low when adjusted for inflation and considering the cost of game development.
As fans dream of video games with better high-definition displays, cutting-edge graphics, voice recognition, facial recognition, gesture control, cross-platform gaming, and so on, the cost of development would invariably go up and this will without a doubt lead to higher retail prices for video games.
But it’s also worth noting that there are different pricing models that can be adopted for game developers and publishers to reduce the financial strain of the initial game prices on consumers. There is nothing better for players than being able to access their favorite games and newly released titles at various price points provided by different pricing models.