We are getting closer to the launch of the next-gen consoles: PlayStation5 and Xbox Series X.
These devices come with a promise of better graphics and advanced technology. This might mean that the games are getting a price lift too.
Strauss Zelnick, CEO of Take-Two, has spoken in favor of raising game prices to $70 on PS5 and Xbox Series X. Rockstar and 2K Games are famous titles under the parent company: Take-Two. Zelnick talked about the price hike in a recent interview with the Protocol. He mentioned that the prices for development have sky-rocketed over the years. And that the retail prices haven’t changed.
Zelnick has a strong, fair point. Games have gotten much better. There are strong storylines, animation, and graphics in the games now than ever before. Consumers can also do a lot more with games than they could 15 years ago.
Earlier in July, 2K Games revealed that the next-gen console versions of NBA 2K21 would cost $69.99. This price caused a buzz online. The anticipation as that other titles would also follow the same pursuit. But its not quite the trend yet. The title NBA 2K21 versions for PS4 and Xbox One costs $59.99. The game publisher, 2K, explained that the prices are different for a reason.
“The game has been built from the ground up to take the full advantage of next-gen power and technology.”
Zelnick linked the pricing with the quality of the experience that they provide. “We aim to provide the best in the business,” he stated. “And from our point of view, it’s an extremely modest price change given that the prices haven’t changed for a long time,” he added.
In the recent Protocol interview, Zelnick explained about the need for a price hike on next-gen games:
We deliver a much bigger game for $60 or $70 than we had for $60 10 years ago. The opportunity to spend money online is entirely optional, and it’s not a free-to-play title. It’s a complete, incredibly robust experience, even if you never spend another penny after your initial purchase.
The Take-Two CEO shared that production costs have gone up 200 to 300%. But the front-line price hasn’t increased for 15 years. “More to the point – since no one cares what your production costs are,” he said. “What consumers can do with the product has completely changed,” he added.
Given the development in the gaming industry, it is a surprise how the prices haven’t changed. Every other facet of the economy has seen some price raise. Even with basic adjustments, a $60 game in 2005 would cost over $80 in 2020. Seeing this, a $70 price jump is actually cheaper.
There are fans who aren’t happy with the new game prices. And there are companies who haven’t budged. Ubisoft and EA have clarified that their prices won’t be changed on PlayStation 5, Xbox Series X, and Xbox Series S.
And some fans are ready to pay $80 if they don’t have to pay for more extra content in the future. The experience and quality that some titles serve are worth the price hike. There will be a time for $70 games. But looking at the pandemic and the unemployment rate right now doesn’t feel like a good time.
