Activision Says Next-Gen Games Will Be Pricier


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kylejn
March 16, 2005 - Activision will likely raise retail prices of next-generation console games by $10 to cover higher production costs, Investor's Business Daily recently quoted Activision CEO Robert Kotik as saying (the article is mentioned online at Gamasutra).

Few publishers have commented definitively on next-gen game pricing, though it is widely speculated in the industry that software prices will rise. Activision's increase would put suggested game prices close to $60, a price which, as Kotik implies, reflects the increased cost of producing sophisticated titles with production values closer than ever to Hollywood films.

"We haven't raised prices as an industry in 20 years," Kotick commented. "Look at the movie business as an analogy. You're not getting any more hours of entertainment -- it's the same two hours of a motion picture -- and yet you're spending twice as much as you did 10 years ago."

Of course, software production costs are not the only factor in a game's price. Traditionally console manufacturers have sold hardware below cost, making up for the loss with software licensing fees. Industry speculation has next-generation consoles potentially priced as high as $500, doubtless reflecting the investment companies like Sony and Microsoft are making in designing a cutting-edge box. There's reason to think even a price this high is below actual cost -- thus, higher licensing fees and higher software prices.

When contacted, Activision could not provide further information, apart from confirming Kotick's comments in the Daily. Regardless, consider this one more clue in place as we predict the shape of gaming's future. Stay tuned for more.

Source: IGN.com

I, for one, am calling bulls*** on this one. There's no WAY they should even CONSIDER selling games for even more than they cost now (which is already overpriced, IMHO). In addition, I don't see the next generation of consoles costing $500, ever. There's no way that the Big Three are so stupid as to think that they can get away with that kind of crap. Launch prices will be the same as they've always been: $299. Y'all's thoughts?

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+warwagon

high prices just motivates pirates

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sundayx
high prices just motivates pirates

585625645[/snapback]

which benefits end users and gamers. :shifty:

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[hxc]

umm woohoo, this is great news! /sarcasm.

i already think that prices can get too high. when a brand new game comes out and its close to $80 canadian, thats pretty pricey.

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Bhav

this same problem will occur with high-def movies on blu-ray and hd dvd. it costs more to make the menus and stuff on movie discs, so they'll cover the cost by making it more expensive for the consumer.

for both movies and games, i think it's acceptable that they'll have to charge more because it'll cost more to make, but i agree that games are way to expensive at the moment anyway.

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TheLegendOfMart

With the amount of tripe they churn out they arent worth even half that amount.

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jerry
I, for one, am calling bulls*** on this one.

585625634[/snapback]

You are not alone. :crazy:

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Vice

I paid ?30 for HL2 and ?30 for UT2004 both titles on PC.

average PS2 retail game - ?40 (at time it is releseased after like 2 months it drops to ?20) and now they want to put the price up even higher?

IMO PC games cost less and are much better value with 3rd party game mods most offer FREE online play and level builders.

I don't think I will be buying another console game for a long time.

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Amnesia

as far as I see it, if prices go up, I'll be buying less.

It's not a smart move.

That's what forced me to go to the 'backup' direction.

If games were cheaper, I'd buy original's with no questions asked!

They should price games like Japan does.

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Laughing-Man
I paid ?30 for HL2 and ?30 for UT2004 both titles on PC.

average PS2 retail game - ?40 (at time it is releseased after like 2 months it drops to ?20) and now they want to put the price up even higher?

IMO PC games cost less and are much better value with 3rd party game mods most offer FREE online play and level builders.

I don't think I will be buying another console game for a long time.

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I definitely noticed that too. PC games are getting released at like $40 opening day or even less when their console counter-parts are $10-$20 more. Two months ago when I was going to get Silent Hill 4 for PS2 it was $40 and its PC counter-part was $20. I don't have any clue what is up with that. Maybe it has to do with supply and demand. There is so much demand for console games that the price is going up and the reverse is happening to PC games. I've been waiting for price drops to buy my console games lately. Metroid Prime 2 is not becoming a $20 Players Choice game fast enough and I don't think I can keep my friends' game indefinitely...or can I?:whistle:tle: Edited by jmole
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macrosslover
I definitely noticed that too.  PC games are getting released at like $40 opening day or even less when their console counter-parts are $10-$20 more.  Two months ago when I was going to get Silent Hill 4 for PS2 it was $40 and its PC counter-part was $20.  I don't have any clue what is up with that.  Maybe it has to do with supply and demand.  There is so much demand for console games that the price is going up and the reverse is happening to PC games.  I've been waiting for price drops to buy my console games lately.  Metroid Prime 2 is not becoming a $20 Players Choice game fast enough and I don't think I can keep my friends' game indefinitely...or can I?! :whistle:

585625916[/snapback]

shame lol

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dheaddy

According to xe.com, $60 is approx ?31, we already pay up to ?40 in the UK for games! I hope this is just speculation

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sevastopol

luckily pc games have always been and will be cheaper than console gamez :)

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Laughing-Man
According to xe.com, $60 is approx ?31, we already pay up to ?40 in the UK  for games! I hope this is just speculation

585625978[/snapback]

Man you people in the UK really get the shaft. Your the last to get the games along with them being overpriced.
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Bamagrad03

I dont know...the guy had a point about there not being a price increase in 20 years. I remember buying double dragon 2 on NES for 50 bucks in the 80s.

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DanManIt

Wonderful.......................Now I'll be purchasing used games only.

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L3thal

If they sell the next-gen consoles at $299 and the games at $59.99, I definately will buy it. Now, if they increase the price, it should be around $54.99 like Half-Life? and not $60.

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firen

I went to the Academy of Arts here in San francisco (im a junior in hs) for a Saturday art experience, and our instructor works for Konami, he says games nowadays SHOULDN't be more than $30 :(

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digistil

I wish Activision would say one of two things:

HONEST STATEMENT - "We're going to charge you more, because we think you'll pay more."

EVEN MORE OBVIOUS LIE - "We're going to charge you more, so that we can invest making games cheaper."

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kaffra

heres to the next gen mod-chips:D

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h00nta
Man you people in the UK really get the shaft.  Your the last to get the games along with them being overpriced.

585626005[/snapback]

You are so right.

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Spartan_X

Figures... this comes from Activision, remember they were the @ss holes asking a hell lot of money for Doom3 :angry: and because it sold good at any price the want it to sell now they think they can do the same with all their games and the industry. Good thing is that ESPN NFL 2K5 that sold for under $20 set the precedent for quality games for a budget price. Anyways, nobody is gonna listen to Activision, the trend is going to be offer games for the actual price or under it. Fear not comrades??:p:p

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Rudy

i dont care about the price of games..... :p

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mcb

too high = charging $40 for mario bros ONE, 20 years after its made

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