Publishers Considering to Raise Video Game Prices for Next-Gen Console Systems

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A games research firm recently reported that some game publishers are considering raising the price of their upcoming PlayStation 5 and Xbox Series X titles.

Games research firm IDG Consulting believes that the publishers will be increasing the price of their next-generation games after game publisher 2K revealed the price for their upcoming basketball video game NBA 2K21 for PS5 and Xbox Series X. The next-gen game will be priced at $69.99, which is $10 more expensive than the regular current-gen games.

IDG President and CEO Yoshio Osaki explained to GamesIndustry.biz that the same pricing has remained flat since 2005, whereas TV and movie pricing has increased significantly.

Osaki continued:

The last time that next-gen launch software pricing went up was in 2005 and 2006, when it went from $49.99 to $59.99 at the start of the Xbox 360 and PS3 generation. During that time, the costs and prices in other affiliated verticals have gone up.

The IDG president then revealed that the next-gen console game production costs have increased by 200 percent to 300 percent depending on the IP, studio, and genre, but it still remained the same at $59.99.

Osaki explained further:

Even with the increase to $69.99 for next-gen, that price increase from 2005 to 2020 next-gen is only up 17%, far lower than the other comparisons. While the cost of development and publishing have gone up, and pricing in other entertainment verticals has also gone up substantially, next-gen software pricing has not reflected these increases. $59.99 to $69.99 does not even cover these other cost increases completely, but does move it more in the proper direction.

IDG works with all major game publishers, and our channel checks indicate that other publishers are also exploring moving their next-gen pricing up on certain franchises, for the same reasons outlined above.

Not every game should garner the $69.99 price point on next-gen, but flagship AAAs such as NBA 2K merit this pricing more than others.

So expect a bit of an increase on prices for next-generation games especially for triple A titles. Some might not opt for the full-on increase, but small adjustments nonetheless. Everyone, prepare to save up for the new normal of prices in these times.

Source: GamesIndustry.biz

Former News Editor