EA: Industry Must "Deal With" $60 Pricetags


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By Kris Graft

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.

“In the next five years, we’re all going to have to deal with [the current pricing model]. In China, they’re giving games away for free,” he said in a Fortune blog report. “People who benefit from the current model will need to embrace a new revenue model, or wait for others to disrupt.”

Fortune said that EA is currently exploring different pricing models as well as venturing into digital distribution.

Riccitiello, who was speaking at the Berkeley Haas School of Business, also put in his two cents about media detractors who paint videogames as a harmful pasttime provided by a predatory industry.

"Our industry is exceptionally well-controlled. Every game gets rated [by the ESRB]," he said. “The desire by the media to censor games amazes me.”

Source: Next-Gen

I personally think the $60 price tag is too much. For instance, in Canada right now, for some reason our 'next-gen' game price is set at $69 which works out to $79.79 with taxes. That is ridiculous for something that only gives you 'x' hours of enjoyment, not to mention it should be set to the USD price since our money is worth more (but that is a domestic problem). This is why I only purchase a game that lasts for ages, and rent the rest.

That's why I don't buy games any more, I've pretty much stopped playing, too. For the must buy games, for example the Orange Box, I find the courage to spend a bit of cash, but I just wait until Christmas/Birthday. Especially with so many games coming out these next two months.

Instead, I've been building up my collection of older games (run like butter on my 8800GTS, lol). It's cheaper, and in the end, I'm just behind a year or two on the gaming scene, so it's not that bad.

I'd be more then happy to pay $60 for a game if it translated to AUD. At the current exchange rate, the RRP for games in Australia is AUD$119.95 (~USD$110.76) so we are expected to pay nearly double! Thankfully not all retailers sell their games at this price, with alot of games coming in (roughly) at the AUD$75 (~USD$69) to AUD$99.95 (~USD$92.31) bracket, which isn't as bad but still not great. That is my 2 cents anyway.

thats just stupid... for all it costs to make games (physically on a disc, not the coding) they have outragious profit margins.. I think it was like $1 per game goes into packing, marketing and stamping the discs.... I thought when I saw the Wii games at $29 a game, wow the prices are droping... now this from EA? psh EA is a monopoly to start with anymore... of course they would claim they have to raise prices

I'd be more then happy to pay $60 for a game if it translated to AUD. At the current exchange rate, the RRP for games in Australia is AUD$119.95 (~USD$110.76) so we are expected to pay nearly double! Thankfully not all retailers sell their games at this price, with alot of games coming in (roughly) at the AUD$75 (~USD$69) to AUD$99.95 (~USD$92.31) bracket, which isn't as bad but still not great. That is my 2 cents anyway.

Yeah. Although thats mostly just the stores like EB and Harvey Norman. I've basically given up on them for 360 titles besides older ones...I tend to buy online at places like dvdcrave.com.au nowdays or BigW, JB and the likes. I think the fact that between HN and EB they have such a huge grasp on the electronics and gaming market here you see some outlandish price gauging at these places and people still go there.

But I agree, on the whole we are getting ripped off. With the current exchange rates theres no reason for XBox titles to be more than $80...maybe $90 tops. Hell PC titles consistently sell cheaper than 360 ones so it's not shipping costs...it's just that so many people are prepared to pay it on the consoles. $120 is completely insane but.

What I also hate is seeing so many Australian buyers buying from these expensive places and using the price matching they do. Since they more often than not ring the competitor to make sure the item is in stock before giving you the price match, it seems to me that people should award the people offering the cheaper prices to begin with rather than fighting EB for them to accept it. Some people do it to abuse the 7days returns policy I guess.

It depends on the game. I'm more than willing to spend ?40 on games like Bioshock (which I got for ?30 though) and Orange box. But then you get other games like the FIFA series, that although I do like, I don't think the ?40 (?50 rrp) pricepoint is acceptable.

Last time I paid $60 for a game (Lunar: Silver Star Story, PSX) I got a soundtrack, a cloth map of the game's world, a hardcover instruction manual, and a "Making of" special disc.

If they want me to pay $60 for the base game, they can go take a flying leap. I don't mind paying extra for limited-edition releases when there are bonuses and stuff to sweeten the deal. It's kinda cool from a collector's point of view. But if Extortionist Arts expects me to fork over 60 clams for a case, a disc, a manual, and their good cheer, they've got another thing coming.

$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.

I was going to say the same thing. Americans complain about spending $60 on a game, when we spend ?40-50, which is equivelant to about $90. How would you guys feel then?:angry:gry:

If anyone pays ridiculous prices, it's us!!

Game pricing for the Wii has been fairly consistent, from what I've seen. I haven't seen any games for the Wii priced higher than $49.99 (US dollars) brand new. However, the XBox and PS3 games tend to be $5-$10 higher on average.

I personally couldn't spend more than $54 (after taxes) on a game unless it came with a slew of collector's goodies.

~SilentMage

I was going to say the same thing. Americans complain about spending $60 on a game, when we spend ?40-50, which is equivelant to about $90. How would you guys feel then?! :angry::

If anyone pays ridiculous prices, it's us!!

Yeah, but europe has outrageous VAT. 20% in my country.

^ yeah I don't understand that either. I'm trying to get used to the $70CDN price tag on PS3 games. :/

Oops I misread what you said, lol. In any case, Futureshop/Bestbuy seem to be ripoff central for video games, they sell PS3 games at $69 which translates to $79 with tax. Same with any new XBOX game. Complete ripoff.

Oops I misread what you said, lol. In any case, Futureshop/Bestbuy seem to be ripoff central for video games, they sell PS3 games at $69 which translates to $79 with tax. Same with any new XBOX game. Complete ripoff.

Yeah, so far I've found EB Games to have the best prices. Although I did pickup Heavenly Sword for $50 at Futureshop. They had a sale thing goin' :) I love EB Games for the used stuff. Why buy new when you can get the same thing half price? :D

I was going to say the same thing. Americans complain about spending $60 on a game, when we spend ?40-50, which is equivelant to about $90. How would you guys feel then?! :angry::

If anyone pays ridiculous prices, it's us!!

Remember the 25% VAT in Europe.

Personally I'd take the slightly higher prices we pay with the VAT and all for all the benefits we get overth US, not to mention to the consumer protection we have over here.

Game production costs continue to go through the roof so if you want to continue getting bigger and better games you're gonna have to pay more for them. If you find certain types of games to not be worth their price just rent them or don't bother with them at all.

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