- cross-posted to:
- xbox
- cross-posted to:
- xbox
Capcom’s president and chief operating officer has said he thinks game prices should go up.
Haruhiro Tsujimoto made the comments at this year’s Tokyo Game Show, Nikkei reported. TGS is sponsored by the Computer Entertainment Supplier’s Association, a Japanese organisation which aims to support the Japanese industry, which Tsujimoto is currently the chairman of.
“Personally, I feel that game prices are too low,” Tsujimoto said, citing increasing development costs and a need to increase wages.
The economy of scale is what lets companies operate at higher costs. According to Wikipedia RE2 cost about $1 million to make. $1m might still buy a PS1 caliber game, but the remake cost at least an order of magnitude more. Many games now cost nine figures; GTA6 apparently cost $1 billion.
I’m not saying games should haphazardly inflate with everything else for the sake of share holders, but I’m open to the idea that the formula used twenty years ago to decide that AAA games should cost $60 might be out of date.
Online sale have reduced distribution costs and unlimited scaling compared to physical media, so successful games are far more lucrative now than they were and unsuccessful games don’t have losses from overproduction and returns from stores.
If selling at the current rate wasn’t profitable, gaming companies would have stopped making games by now.
Certainly a factor that should be included in determining what a game costs, as is the 30% off the top taken by Steam, Microsoft, and Sony for most digital sales. Distribution in 2023 was not a factor in determining the current max price for a standard edition non-sports game, which was set in the early 00s.
I’m also comfortable seeing games that cost less to produce carrying lower price tags, as in many cases they do, Hades and Hi-Fi Rush coming to mind.
They continue to make $60 games, yes. No one can say whether some company would have made the greatest game of all time last year if they’d been able to sell it for $70, or $80 or $100. Maybe they’re making it now as GTA6.
Brick and mortar stores are closer to a 50% cut, so 30% is actually a better deal.
That formula has to include charging what the market will bear. They can certainly increase the price and sell fewer copies, and maybe that’ll be more profitable for them in the end, but they certainly can’t jack up the price and assume all their current customers will stump up to grow their profits.
People’s income hasn’t increased all that much, the wealth gap in many countries has only grown. Games cost more when they were a niche product, and cost less when the audience and potential sales grew. Maybe they’d prefer their billion dollar industry went back to being more niche and only for the wealthy.