Capcom president Harushiro Tsujimoto claims that the prices of video games need to increase to meet ballooning development costs.
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.
The article you linked for elder ring (a game with no micro-transactions) talked about re-using assets from that game.
As in it was built from the ground up but reused in the game.
That’s not what I asked though. Irrelevant information because we don’t know the economies of scale at play.
