Tuesday, August 11, 2009

the video game retail price debate

If you pay attention to gaming news you probably read last week when Activision CEO Bobby Kotick made a rather flip remark about wishing he could raise the prices of his company's blockbuster game releases even higher to get more reassurance that a game will make back the money spent on its development. The video game community has understandably reacted pretty negatively to these comments as they come in a time when Activision is already clearly making huge profits. Not to mention that the average American is finding it hard enough to drop $60 on a new game (see used game sales spikes for more proof of this). When Activision's DJ Hero and Tony Hawk: Ride launch they will both cost upwards of $120 as they are released with peripheral controller accessories, and Modern Warfare 2 will set UK players back around $75 USD when it comes out in November. I understand the troubles that game studios have when it comes to making money back - publishers pay for every game copy ever printed, not just the ones that sell - but still, with the rise of digital distribution and the looming juggernaut that is the used games market, now is for sure not the time to be alienating the loyal customer base that buys new products with price gauging.

Analysis: Kotick's 'Raise the Price' Comment and AAA Game Value
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