Prices have mostly been decided by minimum wage. If you want a million people to buy your game, you need a million people to have $60 they can spare.
Capcom President salary is 'Too High'
Even the most terrible AAA games sell millions of copies these days. They more than make their money back with each one, the margins are slimmer but the volume is magnitudes higher than ever. Cry me a river.
This exact thought (volume) occurred to me when I saw the headline. They like to say that the price of games hasn't increased in line with inflation, but I'd be interested to know how big the market was in the 80s, 90s, 2000s and today. I'd bet the market is orders of magnitude bigger today.
This drives me crazy every time I see it so I'm glad to see others recognizing this. Yes game production has gone up, but the market has massively increased. Your costs are fixed; doesn't matter if you sell 10,000 copies or 10,000,000. More people are gaming than ever so when I see all these attempts to squeeze more money from consumers to address rising costs I have no sympathy for the publisher.
Prices of video games and consoles have actually declined over time when accounting for inflation.
https://techraptor.net/gaming/features/cost-of-gaming-since-1970s
Here's an example:
PlayStation 1
Cost at Launch (1995): $299.99 Cost Today (2020): $509.19 Average Game Cost (1995): $49.99 Average Game Cost (2020): $84.85
PlayStation 2
Cost at Launch (2000): $299.99 Cost Today (2020): $450.64 Average Game Cost (2000): $49.99 Average Game Cost (2020): $75.09
AAA titles going to $90 would actually be putting them back to PS1 and earlier pricing.
And the profitability has skyrocketed. The videogame industry is now one of the largest insudtries on the planet. A big driver has been normalisation of after-purchase items. Console players now pay to unlock their collar to the internet (ps+ and XBlive). Microtransactions add to this, and now battlepasses want $10+ every 50-90 days. Lootboxes normalizing near-gambling with overwatches success was a huge bar-lift in profitability expectations for shareholders.
Special editions are also hitting $90 and higher, plus those other expenditures. Ask "the gamers tm" and they'll tell you you have to buy a special edition for $120 or you're not a real fan anyway. Starfield has a $300 version. The Digital Premium doesn't even come with the GAME! It's another $35 after you already gave Microsoft $70.
Additionally, the work to make a new game has decreased. Assets are able to be salvaged from one engine to the next reducing the amount of work to make a game in UE6 after it was on UE5. the workforce has matured and can be taught as a class so there's not nearly as many "self taught" making half a game. Roller Coaster Tycoon was made almost entirely by one dude. Obviously re-using assets is smart. But then to say you "built the game from the ground up" is false. Elden Ring was even praised for it
Marketing budgets have fuckin EXPLODED. A "Rule of Thumb" for indie devs is to spend HALF your budget on just marketing. Destiny allegedly spent 2.5× what they spent on development, for marketing. Publishing studios didn't used to spend this much. "For every dollar on the game, spend another .25 to .50 on marketing"
Buying power has gone DOWN since ps1. You think I'm joking but federal minimum wage in the US is still 7.25. In 1994 (launch of ps1). It was 4.25 - adjusted for inflation thats $8.43. Meaning if you made minimum wage then, you'd be making more than minimum wage now, effectively. People are fucking broke and game companies want MORE money for games.
In 1994 when you bought a PS1 game you got THE WHOLE GAME. That was it. There was no merch drop pip-boy for the special edition. There was no Day-One patch. There was no "pay to get multiplayer". There was no in-game shop to buy skins for the characters. All these features were intentionally cut to resell to consumers post-launch.
Games cost less to make now, but budgets went up. Buying power is down. Please stop defending corporate bullshit excuses about wanting more money, forever.
I'd be curious comparing these prices to median income or median disposable income. I'm guessing it tracks those numbers much closer than inflation, which wages haven't kept pace with.
They can raise the prices all they want.
I'm still only going to buy them long after all the patches and on discount.
Funny how completed games are cheaper than games that are still in development/public beta.
I want to mention the concept of consumer surplus since it's a lesser known economic principle compared to supply and demand.
Put simply, everyone has a price. A static price like $60 will get everyone willing to pay over $60. Some will be willing to pay $90, some $120, and so forth. The latest developments on pricing take advantage of that with horse armor, as those are folks with a higher threshold. On the other end of the spectrum, you have 50% to 90% sales to get the rest of us. Flexible pricing is the main reason companies are doing well, especially in an age of growing economic disparity. Just ask the whales how much they spend!
That said, saying the base price should go up neglects the broader economic situation everyone is in, and the US and Japan hasn't seen their baseline go up. Sadly, companies should know this, that's why prices vary by county. Ever buy a game from a Brazilian website? Much cheaper.
Tldr, dudes a short sighted twat, companies already optimize prices.
Or maybe don't make expensive games.
The AAA market seems to be chasing a business model that isn't there any more. I don't know why game developers still chase photo realism, it isn't what makes money.
Not to mention until it's actually photo-realistic, it looks uncanny. It's better to find a style and use that than to chase realism imo. But then again, these AAA games just add a bunch of foliage, some god rays, maybe a sprinkle of rain and people are oooh, aaah-ing and coughing up their cash.
This is all software, companies keep finding excuses to tack on “features” that increase development cost which eventually lead to necessary price increases.
In the professional world you will rarely ever hear project managers and leaders ask the question “would our customers rather pay extra for feature X or save money by sticking to their simpler feature set?” This is because development is nearly always started with the long term goal of incorporating a feature into the product to increase the overall “value” of the product. This increased “value” of the product then means that the company should charge more for it.
I am ranting now.
The president of Capcom can lick the wrinkles out of my sweat steamed scrotum if he thinks I'm buying another Capcom game after this.
Yeah, games cost more to make than they did on the SNES.
But theres also an absolutely massively bigger customer base buying more games than ever before. So if your big name games are failing to bring in big numbers, that sounds like you and your fellow executives need to step down and let someone who knows what customers actually want run the company. But I bet that thought never crossed his fuckin mind.
IT'S ALMOST AS IF THERE IS A DEFINED SOCIOECONOMIC CLASS THAT'S SUCKING MONEY FROM THE ECONOMY
Less infighting, more eating of the rich. Pay the devs, not the landlords. The capitalism system is broken and breaking further. The cost of goods is defined by how much workers need to be paid to make it, and then multiplicatively inflated by how much greed that BILLIONAIRE CLASS wants.
Government is for the people, by the people, that's the ONLY reason it exists. People in, and that want to be the billionaire class have declared war on the rest of us, and it's the government's sole purpose to protect the well-being and will of the people.
The government MUST serve the people.
If it can't, the highest priority is it MUST be fixed immediately.
The longer we flail and wait, the more that obviously hostile class of people grow in power and make fixing this a more and more serious issue.
Like any good leader, if you are failing in your duties, you must self-correct, elect an adequate replacement, or you must be removed, by your own will or by force.
Because life-time is too precious to waste waiting for the conflict to come to a head and burst.
That hostile class is doing everything possible to prevent any of this. Calm down, diffuse, obfuscate, confuse, project, gaslight, lie, cheat, steal, destroy, and gain power to RULE above the-will-of-the-people: the government.
Rich asshole doesn't think he's making enough money, News at 11:00.
Tell him to go live in the US in a rented apartment on an average salary. Bet he'll change his mind in 3 months.
Tsujimoto also went on to claim that a slow economy wouldn’t have a big impact on video game prices either: “Just because there’s a recession doesn’t mean you won’t go to the movie theater or go to your favorite artist’s concert. High-quality games will continue to sell,” he said.
Yes it does. "Recession" means you have less disposable income to waste on poor quality entertainment.
Yet they keep having record profits.
I know that Diablo isn't a Capcom game, but if industry leaders are looking at $90 games with battle passes and in game purchases for $20 horse armor is "too low", then we are truly fucked.
Capcom games with their gazillion overpriced DLCs that never go on reasonable sales? Funny.
Game prices are already pushing $100+ when you factor in season passes, special editions, and microtransactions. Basically every AAA game has some combo of all of these.
To be honest, game prices have stayed the same for a very long time, but you can't release garbage and expect people to hundreds for it
The problem that they're not considering is that if they raise the prices, more people are going to be priced out of buying the games, and will resort to piracy. The cost of living is absurd right now, and I can only afford a handful of $60 games a year.
Why resort to piracy, just wait for next years 75% discount. It even comes with all the bugfixes.
Every company executive has gotten way too big for their fucking britches. I'm pirating shit again, fuck all of these greedy mother fuckers.
You're literally taking yachts away from someone's children! Why can't you think of the board's children?!
Here's my hot take, I agree, but publishers need to increase pay to developers before I will accept a price hike. Until then I am waiting for that discount like I always do.
I've never understood why people defend this mentality. Ballooning development costs? Last I checked half of the triple A games that get released spent just as much on marketing as fucking development. Not to mention Video Game revenue has been increasing year on year.
Also fuck these people because how often does this shit release with extra "monetisation" like on top of trying to make games more expensive they also throw in tons of microtransactions, loot boxes and battle passes, platform exclusive content, pre-order exclusive content etc.
When the creator of Stardew Valley can charge $14 for his awesome game, and put it on multiple platforms and release updates for jo extra cost, and not charge subscription fees, and everyone can mod it and be happy, and the creator has made multimillions by now ... Other companies need to take note.
From someone who worked at a company who wasted tons of money and had too many parties, excess staff and ceos who made excessive salaries, if these gaming companies are charging too much they need to look internally to fix issues instead of asking their customers to fuel their greed.
He said "because of ballooning development costs". Stardew valley is famously a one man labor of love, the opposite of ballooning development costs.
$14 pr sold copy is ridiculously high in this context, because development costs is only for one dude.
You're comparing this guys runaway success with a company with several development teams, office spaces, marketing teams, accountants, probably janitors, security, etc, etc.
I'm not saying he is in the right, just pointing out that it is apples to oranges.
Poor management is the problem. Your overhead has nothing to do with us. You suck at business and cutting jobs is all you do.
Games are not worth more by any means. The market is saturated and AAA games release unfinished and you still make your profits and bonuses.
The problem are the elite shitbags who go to elite schools and get cherry picked by other elite shitbags who continue the cycle of enshittification of the world rather than hiring good hard working Americans within that KNOW their industry and the products where people like Tim Apple and whoever this Capcom CEO ding dong do not at all.
What a fucktard. If games were cheaper, more people would buy them. Nowadays a hell of a lot of people wait until the game is updated and on sale to buy it since most games are released broken anyways. That or they just pirate it. No way I'm spending 1/10 of a paycheck on a new video game every once in a while.
How about your mom is too low, ya greedy CEO bastard.
Well, I think piracy is a viable option.
Some prices are crazy in my opinion.
I generally buy 2 year old games except in some cases.
And in the consoles they are even more expensive. Game price could be higher than on PC and then you also need to pay an expensive subscription (because they charge you for a lot more things than just the multiplayer costs) to be allowed to play in multiplayer.
The player base is also bigger than before. While that needs more post sales support and more infrastructure it is nothing compared to the game.
I think in short the problem here is just the wrong forecasting when planning the game.
lmao
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