EA: Industry Must "Deal With" $60 Pricetags

As if games were not expensive enough already, EA had this to say about the rising cost of gaming:

Quote -
Electronic Arts CEO John Riccitiello suggests that publishers will soon have to "deal with" the $59 price point for next-gen videogames.
With the US videogame industry on track for its biggest year ever at $17-$18 billion in 2007 revenues, it would seem that consumers are just peachy with the current price of next-generation games.

But the same kind of complacency and "arrogance" that afflicted ABC, CBS and NBC before cable took over could soon bite videogame publishers who don't take emerging revenue streams seriously, according to Riccitiello.

The comments in our related forum post have been mixed. Randomnut posts an entry saying that, "$60 would be fine if that translated to £, as that would mean we're paying £30. At the moment we're paying £40 a game, so that equates to $80, now that's a rip off."

News source: [Next-Gen] via [Forum Post]

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17 Comments

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hell give me games for $60

in aus they are like $110 even though the aussie dollar is pretty much on par with the US so in the end we pay twice as much for games as those of you in the US. So anyone complaining about paying $60 get a LIFE. how bout you make games in australia $60

Selling games for 20% more than ten years ago barely keeps up with inflation for most currencies. Seems fair to me.

Unwonted said,
Selling games for 20% more than ten years ago barely keeps up with inflation for most currencies. Seems fair to me.

It's not fair. While the price of gaming has went up significantly over the last several years, our income has not. Minimum wage has not budged--the base payrate is still the same as it was 4 years ago when the top games costed $50. Anyone who thinks it's fair is someone who either got lucky and landed a job making 100k a year, or someone who has no responsibilities and can take every penny they make and throw it inot video gaming.

The average High School Graduate and College Student makes $7 an hour. The average College Gaduate makes about 25k a year until they get about 3-5 years of experience under their belt. So, how is it fair that video game prices has went up, but income has not?

Mistwaver said,
Anyone who thinks it's fair is someone who either got lucky and landed a job making 100k a year, or someone who has no responsibilities and can take every penny they make and throw it inot video gaming.

Landing a 100k salary doesn't take luck, it takes an education, and a drive to find a good job.

EA keeps buying everyone up. That is anti-price competitive. They could do more than play lip service to this issue if THEY lowered their games to $40-50. The rest of the industry would have to follow.

Stop buying? I mean you can use the principals of supply/demand to your advantage. If the games are just sitting on the shelves and no one is buying a few things could happen.

1. Prices will go down as the retailers attempt to move out older inventory.
2. Retailers won't want to stock additional games because the last one in the series (madden 08, 09, 10, 11, etc..) didn't sell.
3. Maybe companies (EA) would then stop spewing out the same old crap thinking it would sell.

Forget I said anything. It won't happen. People will continue to complain how companies keep on with the "wash, rinse, repeat" business plan and how a lot of games generally suck.

Games aren't a mandatory part of life. Set down the controller for about a year and go outside and get some fresh air.

EcPercy said,
Stop buying? I mean you can use the principals of supply/demand to your advantage. If the games are just sitting on the shelves and no one is buying a few things could happen.

1. Prices will go down as the retailers attempt to move out older inventory.
2. Retailers won't want to stock additional games because the last one in the series (madden 08, 09, 10, 11, etc..) didn't sell.
3. Maybe companies (EA) would then stop spewing out the same old crap thinking it would sell.

Forget I said anything. It won't happen. People will continue to complain how companies keep on with the "wash, rinse, repeat" business plan and how a lot of games generally suck.

Games aren't a mandatory part of life. Set down the controller for about a year and go outside and get some fresh air.

+1

A very well written post...

When you consider that a lot of gamers are now adults with full time jobs and many outside interests your trollish post falls flat on it's face.

The Gunslinger said,

+1

A very well written post...

I agree as well. Stop buying all these last-gen games ported to next-gen consoles and they still stop trying to sell these ports for the price of a new made from ground up next-generation games.

Don't buy Madden. Don't buy Need for Speed. Don't buy NBA Live, don't buy NCAA Football 08, etc. The list goes on. Buy the true next gen games such as Gears of Wars, Mass Effect, and Assassin's Creed, and the price of these last-gen-ported games will drop. I have no problem with paying $60 for a game that was made from ground up to be optimized on a next-gen system--but it's a different story when they take Burnout from the Xbox (that is selling for like $10) increase the texture quality, and re-release it on the Xbox 360 for $60.

Everything in the US may be bigger.
But, our prices (UK) are bigger than yours!!

They (games companies/distributors) argue that the higher cost in the UK is down to the size of the market (being so much smaller than the US). Which is partly true. But, the EU is a larger market than the US!

And, if it really were logistics of moving tangible goods around the EU, then why aren't digital downloads just as cheap for us as our cousins across the pond?!?

excalpius said,
And now they last 1/3 as long as they used to...ahem.

EXACTLY! thats the biggest jipp of today's gaming, next to the fact we're paying their enourmous R&D, yet they have to get 10 patches to make it right. (BF2 anyone?)

IMO, prices of games should drop to reflect the shoddyness of the programming involved.

What about in-game ads? Excuse me? I just forked out my $60, why am I PAYING to see ads as well?

I could rant on longer, but I think you've got the point.

Final thought: No wonder piracy is so rampart thesedays.

Galley said,
Development costs keep increasing, so we're stuck paying for it. :(

... and yet, they are making gazillions out of games. just look at halo 3 or any of the top titles.

obviously, the only beneficiaries if there is a price hike will be the software pirates.

Albert said,

... and yet, they are making gazillions out of games. just look at halo 3 or any of the top titles.

obviously, the only beneficiaries if there is a price hike will be the software pirates.

the games that don't fail yes, however they subsidize the games that fail so that companies don't go broke when they have a bad release