Modern Warfare 2 and the UK have been strange bedfellows in the media lately, with news that Activision will raise the price of the game to £54.99 (nearly $90). According to game industry mogul (and former Sony Europe boss) Chris Deering, the price hike isn't high enough. Deering tells MCV that blockbuster games simply aren't being produced efficiently enough, saying that the price of such games would actually have to cruise up to £70 ($115!) in order to support the industry as they once did.
That said, Deering realizes that there is "a psychological glass ceiling" for the amount consumers are willing to spend, and notes, "Consumers won't spend more, but to write the game, publishers are having to spend more than ever before. That's the key problem."
Of course, the flipside of this is that game prices could be lower if they were produced more efficiently -- or if the games market grew large enough to support the industry by buying more copies. But $115 games? Ouch.
Reader Comments (117)
Posted: Jul 31st 2009 12:29AM DeepFriedSushi said
used game sales eliminate them and problem solved, you can achieve this if the industry collectively decides on digital distribution.
too bad there are too many obstacles like not everyone having access to broadband and peoples desire to have physical copies.
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too bad there are too many obstacles like not everyone having access to broadband and peoples desire to have physical copies.
Posted: Jul 31st 2009 12:37AM DeepFriedSushi said
also you can draw alot of parallelisms between college textbook sales and how videogame sales are now.
college textbooks have high upfront costs to offset used sales but are also forced to released update/editions every so often to stay current but imo more to maintain profits. sorta like how videogame release sequels and yearly editions for some franchises (cod,guitar games,madden, sports games)
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college textbooks have high upfront costs to offset used sales but are also forced to released update/editions every so often to stay current but imo more to maintain profits. sorta like how videogame release sequels and yearly editions for some franchises (cod,guitar games,madden, sports games)
Posted: Jul 31st 2009 2:46AM WiredKnight said
What, game prices have been steadily rising ever since the creation of the medium. You think they're just going to suddenly stop?
I hate it as much as you do, but it's only a matter of time before prices go up again.
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I hate it as much as you do, but it's only a matter of time before prices go up again.
Posted: Jul 31st 2009 10:53AM Professor Lario said
As soon as efficiency rises and production costs fall due to digital distribution, prices will rise again. Does anyone think companies will set their games prices at $40 digitally? The price argument is used to scare people into digital distribution - and then companies will keep/raise prices to $60 while having effectively stopped the used game market and simultaneously earning greater returns.
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Posted: Jul 31st 2009 11:29AM Mr Khan said
"used game sales eliminate them and problem solved, you can achieve this if the industry collectively decides on digital distribution."
But then they eviscerate a good percentage of the market. Not nearly enough people are really equipped for DD for full games.
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But then they eviscerate a good percentage of the market. Not nearly enough people are really equipped for DD for full games.
Posted: Aug 1st 2009 8:19AM Tendofreak said
So is this a price increase for UK gamers only? We pay more than our American cousins for everything as it stands.
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Posted: Jul 30th 2009 11:15PM (Unverified) said
Good luck. Too many rabid A.D.H.D. kids attached to the Call of Duty name.
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Posted: Jul 31st 2009 12:46AM DeepFriedSushi said
you know there was a chance that this game could have... well not flopped but not do as well, like removal of the cod branding, high competition during winter release
but the stars realigned. MW2 maintained its Call of Duty branding, and a dozen big releases were delayed to 2010. (conviction, mag, god of war 3 (pre-emptive delayed), bayonetta, lost planet 2, singularity, dark void, bioshock 2, Heavy Rain, StarCraft 2, alan wake, heavy rain)
The only games left now for 2009 are Halo ODST, Uncharted 2, Assassins Creed 2, and MW2
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but the stars realigned. MW2 maintained its Call of Duty branding, and a dozen big releases were delayed to 2010. (conviction, mag, god of war 3 (pre-emptive delayed), bayonetta, lost planet 2, singularity, dark void, bioshock 2, Heavy Rain, StarCraft 2, alan wake, heavy rain)
The only games left now for 2009 are Halo ODST, Uncharted 2, Assassins Creed 2, and MW2
Posted: Jul 30th 2009 11:41PM (Unverified) said
I remember the most expensive game (without any peripherals like guitars or so) was Soleil for Genesis, and it costed me the equivalent of today's 70 euros. I'd like to keep it that way. 115, hell no.
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Posted: Jul 30th 2009 11:12PM DMessenger said
Shouldn't you take me out to dinner before you fuck me?
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Posted: Jul 30th 2009 11:12PM (Unverified) said
I refuse to pay $69.99 for games. I think by raising the price even higher will only hurt the industry.
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Posted: Jul 31st 2009 12:04AM karmaghost said
Raising the prices on games even more is a good way to lower sales and increase rental rates or services like Gamefly.
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Posted: Jul 31st 2009 12:08AM Just A Canuck said
@ Mychas
They are in Canada, so I think that they're $59.99 in the US (just a guess tho).
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They are in Canada, so I think that they're $59.99 in the US (just a guess tho).
Posted: Jul 31st 2009 2:15AM DeepFriedSushi said
the united states does probably pay the least amount for games but we are the single biggest market/consumers.
even europe as a whole doesnt outsell the united states. plus releasing games in europe is a complete headache all those regions/ntsc/pal its alot of extra effort for a publisher i dont blame them for marking up the price.
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even europe as a whole doesnt outsell the united states. plus releasing games in europe is a complete headache all those regions/ntsc/pal its alot of extra effort for a publisher i dont blame them for marking up the price.
Posted: Jul 31st 2009 8:42AM (Unverified) said
When I said "are games 70 bucks in America too", I meant that as a Canadian who recently went to buy Infamous and saw it cost 69.99. :(
So I decided that I'll just get it next time I go to America, even if it's only a 10 dollar difference, a message must be made in protest of the new price :p.
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So I decided that I'll just get it next time I go to America, even if it's only a 10 dollar difference, a message must be made in protest of the new price :p.
Posted: Aug 3rd 2009 11:48AM (Unverified) said
Well to be fair, if your whole country uses a certain dollar it doesn't matter the exchange rate. The company(depending on where they are based) is the only one benefiting or suffering from the exchange rates.
If you work in Canada and make 8.00/hr Canadian and buy a game that's 69.99 in Canadian, then it's 69.99. That is more than the US version. If you happen to live on the border. You still actually are paying more even with the exchange rate, so buy our version.
If you work in England and make 8.00/hr in Pounds and buy a game thats 70 in pounds, you're experiences the exact same thing as Mr. Canadian guy there.
If you want to take advantage of exchange rates, go ahead, just be wary of import taxes.
The point is, locally, these prices don't make much of a difference.
I don't really care if a game that's 70 pounds converts over to $100+, I'm not buying it from the UK.
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If you work in Canada and make 8.00/hr Canadian and buy a game that's 69.99 in Canadian, then it's 69.99. That is more than the US version. If you happen to live on the border. You still actually are paying more even with the exchange rate, so buy our version.
If you work in England and make 8.00/hr in Pounds and buy a game thats 70 in pounds, you're experiences the exact same thing as Mr. Canadian guy there.
If you want to take advantage of exchange rates, go ahead, just be wary of import taxes.
The point is, locally, these prices don't make much of a difference.
I don't really care if a game that's 70 pounds converts over to $100+, I'm not buying it from the UK.
Posted: Jul 31st 2009 5:31PM TaskMaster said
That weed you're smoking is 4 times the price of that pipe.
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Posted: Jul 30th 2009 11:15PM LuTon James said
Spare a thought for the Aussie gamers who pay $120 AUS for a AAA title. At the moment that is like paying $99 American dollars for a game. Ridiculous taxes on all software here.
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Posted: Jul 30th 2009 11:26PM trent steel said
yep, aussies have been getting the royal screw job for a long time when it comes to vidya
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Posted: Jul 30th 2009 11:29PM Premature ejaculation man said
I know that we love to complain about our higher prices too...But with JBHIFI around, we don't have as much of an excuse. With the exception of the massive game, JB sell them for $80 or less.
EBGames, like Gamestop (since they're one in the same) is the problem with this price gouging. Go to other stores. $80 is roughly the same as what other countries pay (40 pounds or 60 USD)
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EBGames, like Gamestop (since they're one in the same) is the problem with this price gouging. Go to other stores. $80 is roughly the same as what other countries pay (40 pounds or 60 USD)
Posted: Jul 30th 2009 11:53PM LuTon James said
You're right, JB are awesome. I find that even new release blockbusters are cheap at JB. I picked up the first Uncharted for $78 the week it was released there! I live in QLD and we have WOW sight and sound (pretty much sames as jb) and they had fallout 3, re5, sf4 etc for $88 the day they released. Big W also has some ok deals. Still feel screwed but. But fuck EB/Gamestop.
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Posted: Jul 31st 2009 2:31AM WiredKnight said
20% huh? That is pretty harsh. In New York I think it's up to 9, and that's considered high here....
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Posted: Jul 30th 2009 11:16PM (Unverified) said
I don't know whether to buy it new to support IW or buy it used to screw Activision..
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Posted: Jul 31st 2009 2:37AM WiredKnight said
Buying it used screws IW just as much as Activision.
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Posted: Jul 30th 2009 11:19PM (Unverified) said
No way in God's name would I pay over 60$ for a game.
I don't care if it was the greatest game to ever come out.
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I don't care if it was the greatest game to ever come out.
Posted: Jul 31st 2009 12:12AM (Unverified) said
1 country having the price jacked up to £70 ain't gonna fill in the cost of Video games.
He's only talking in UK prices because he's ex-SCEE boss. He'd be using USD if he was ex-SCEA boss.
So whole world would get screwed over if publishers moved over to charging more.
And if MW2 sell's well, then they just might. If you don't want this pricing, vote with your wallet n don't buy MW2. only problem is being 1 person in the sea of millions who will still buy it.
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He's only talking in UK prices because he's ex-SCEE boss. He'd be using USD if he was ex-SCEA boss.
So whole world would get screwed over if publishers moved over to charging more.
And if MW2 sell's well, then they just might. If you don't want this pricing, vote with your wallet n don't buy MW2. only problem is being 1 person in the sea of millions who will still buy it.
Posted: Jul 30th 2009 11:19PM The Bodyguard said
Hey, this is stupid. Movies do not charge more because their budgets are bigger. Video Game companies should either control how much they spend on development, or make sure they have an audience to push their product to and increase their revenue that way.
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Posted: Jul 31st 2009 2:42AM WiredKnight said
Maybe you haven't been to the movies in a while, but ticket prices have skyrocketed over the past few years. Where I live they're up to ... $12 I think.
I don't think he was referring to MW2 specifically, I think he meant AAA games on the whole should be priced higher, to make as much money as they used to.
Which is exactly what has happened with the film industry.
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I don't think he was referring to MW2 specifically, I think he meant AAA games on the whole should be priced higher, to make as much money as they used to.
Which is exactly what has happened with the film industry.
Posted: Jul 31st 2009 5:38AM BurntMeatloaf said
I laugh when I see that the "Primer" DVD is still selling for ~$25. That movie had next to no budget, but it costs the same as any blockbuster to buy.
Supply and demand, as usual. Next up: if people won't pay £70 for a game... OMG PIRACY *RAGE*.
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Supply and demand, as usual. Next up: if people won't pay £70 for a game... OMG PIRACY *RAGE*.
Posted: Jul 31st 2009 9:12AM (Unverified) said
this is because of DVD sales putting theaters out of business, not because of the cost of making the movie.
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Posted: Jul 30th 2009 11:20PM (Unverified) said
I believe in paying good money for a good product, I just don't believe in being ass raped
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Posted: Jul 30th 2009 11:23PM (Unverified) said
$100 is the price i pay for the games here in south america, so no surprise =/
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Posted: Jul 30th 2009 11:22PM The Albatross said
$115 wouldn't be enough because fewer people would buy the game.
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