Is 60 Bucks To Much?Published by wes213 on Wednesday, December 31, 2008
Tagged: Gaming, Xbox 360,
Since i have had my 360 i have found that all new games are going to run you about 60 bucks and thats that, sounded high to me but who am i to question the great game god that is Microsoft?
With a bit more insite to the cost of games and the possible drop that may become a trend here is a Forbes report that gives us a look at what game pricing might hold for us in the coming year.
The arrival of the Xbox 360 did more than usher in the next generation of videogame systems. It also brought with it a new pricing structure for games.
The $50 price point for AAA games, which had held steady for years, finally jumped to $60. Gamers, predictably, howled in protest, but didn't slow their spending one penny. If anything, they spent more. Publishers were able to cushion their higher development costs and it wasn't long before everyone got comfortable with the new price.
That was before the recession hit. With consumers increasingly worried about their cash flow, questions are starting to surface on how long publishers will be able to maintain the $60 price point.
Activision-Blizzard made the most notable move right before Christmas, lowering the price of "Call of Duty: World at War" from $59 to $49. While price cuts aren't unheard of during the holidays, the latest "Call of Duty" was a strong seller for the company and the action perked the ears of analysts.
"While the move may be part of an annual promotion, we believe a $10 discount on one of the industryís top holiday releases highlights the risk of lower software pricing moving into the new year," wrote Colin Sebastian, senior vice president of equity research for Lazard Capital Markets, in a note to investors.
The late-December cuts to "Call of Duty" were hardly the only ones in the industry. Activision-Blizzard also reduced the price of "Guitar Hero: World Tour," and Sebastian notes Ubisoft and Electronic Arts (nasdaq: ERTS - news - people ) have also instituted broader price cuts.
No doubt, publishers will continue to release new games at $60 price points for some time. But the inability to keep them at that level for a significant period could have some serious implications on revenues.
Lets hope this will hold true and that we can all get back to the glory days of 50 dollar games and save the 60 dollar price point for the ones with DLC already in the box.
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