By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - General Discussion - $59.99. Who determines a video game's standard price?

Darashiva said:
Ka-pi96 said:

The market is also much larger than it was 20 or 30 years ago though. Games sell more than they did back then, especially the case with AAA games.

Not to mention that companies have a lot more ways to make their profit compared to 20 or 30 years ago. A game doesn't stop making money once it's released anymore, with DLC and other additional content being made for them.

That's what I said in the beginning, big companies use DLC and lootboxes to make more money.



Around the Network

I feel that videogame companies, should price games properly, and if they do not, we as customers should demand better and not buy those games. There are very few companies who are giving us way more than other companies for $59.99, while some take advantage and give us lowest amount of content for $59.99. I remember when the first TitanFall come out and people really argue back with me saying the price justify the content, when you paying 60 for way less content than what Call of Duty was giving, which not only gave more maps at the time, but also had a story mode, while the first Titanfall did not have a story mode, and had less maps, but still charge $59.99.......I said at that time, the game should of been $24.99 to $29.99 the most. People on every gaming website who only have a sony or xbox system, just like to get taken advantage of, as long as it have graphics they do not mind companies ripping them off, when you suppose to buy a game for gameplay. If graphics so important, just watch more Pixar films.

Here is a game that have a ton of content, but only real fans of basketball would know, not the casual, or the game reviewers who review basketball games, but do not care for it. I bet they only play 30 minutes, look at the different modes and then write a review. I know because if you NBA 2K fan you would know badges are more important in the games, they help your defense, and shots go in more, but those people who was horrible at the game, assume its because their levels were lower and in order to get good you have to pay to level up. In the game you cannot pay for badges, only can pay to level up to 85 or 86, and then complain why their shots not going in. In the park it was me and two other guys level 67, 68, and 69 and we beat 3 people with level 85 rating, when you check their profile, they had zero badges, so we already knew they paid to get the level they have.

Back to the topic......NBA 2K have 5 modes........1) regular mode where you can play against computer in just a regular match, or play online, 2) My career,...3) My Gm, 4)My Team 5) My League aka also known as season mode in other basketball games

my career - story mode of making it in the nba

my gm - you the owner of a team, you control prices, where the team located, you control trades and etc, the team success is in your hands

my league - season mode where you can play the full season of any team you like just like you did in all of the older basketball games

my team - some card game

In the past when people buy a basketball game in 90s and early 2000s, every game came with my league aka season mode to play through a full season like you team did on TV..........and we would pay $59.99 for this game

in 2017.....for $59.99 we get everything that we get in NBA 2k18 that i listed above......thats a whole lot of content for 59.99, story mode alone is over 200 hours of gameplay just to beat main parts.......to fully complete everything needed to be able to retire in HALL of Fame takes close to 300 hours or more...........my gm .....another mode that takes over hundreds of hours...........and we still get the regular season mode that all past basketball games get....

in my opinion, if they wanted, story mode alone can be worth 59.99 it takes just as much hours as any other RPG, and all the money you get is same as experience points in RPG games, so you use the money to get new clothes, just like you would buy new armor in a RPG, and same money can be use to level you up......while playing many matches would build up your badges which is similar to grinding in a rpg game

I personally do not know any other game that gives this much content for 59.99,

but this is how games should be sold



SKMBlake said:
Ka-pi96 said:

Too low? They make hundreds of millions in profit by selling AAA games at $60. How on earth is that too low?

Let's take a popular game: Super Mario Bros. released on the NES in 1985. In today's standard, it's an AAA game. But only 4 people were involved in its development. And still can be selled at full price.

Today, an AAA game demands hundreds of people involved in its development (and assets bought to several companies or developers) but still costs the same 60$ as the 60$ game you bought 10 years ago.

 

The same thing happened with the film industry. A 2017 blockbuster costs at least 250 millions $ so they have to hope people will eventually see their movie to make benefits.

That's a problem with budgets more than anything. These companies can make games cheaper. They can focus less on graphics which would likely save on time and money, but they refuse. The major publishers want this because it keeps competition out (since smaller firms can't make games as big and with the pretty graphics). As myself and others said, they can increase the price if they want. 

Also, the whole story of "games are too expensive" is a farce. Go look at their financials. They are raking in money. The whole "we need microtransactions because games are expensive" is putting lipstick on a pig. 



Visit my site for more

Known as Smashchu in a former life

Veknoid_Outcast said:
Teeqoz said:

We do know that game budgets have been increasing while game prices didn't. We do know that plenty of companies went bankrupt due to this during the 7th gen. Those seem like pretty good indicators of his point to me..

 

Ka-pi96 said:

We also know that the percentage of digital game sales (which means more money for publishers/devs) have been rising as well though.

Plus I think it's pretty safe to say that the majority of times companies lost money on games it's because their games just weren't good enough (or their budgets were far bigger than they needed to be) to attract enough sales. Increasing the price of those games probably would have lead to even fewer sales, thus they'd still be going bankrupt.

Kap stole my thunder ;)

But yes. Digital sales are on the rise, and publishers take a larger cut of those sales (plus they spend less on overhead).

There's even evidence to suggest that game prices should be lowered from $60 -- that $60 is a high enough threshold to deter a consumer altogether, resulting in a missed sale. A lower price tag would make the product more desirable, and instead of 50 people paying $60 for a game, you might have 150 people pay $40.

The point is this: there are other solutions to this budget problem, apart from "pass the expense on to the end-user in the form of loot boxes and micro-transactions." If a game's budget is so high that it needs to sell five million copies at $60 (plus a few hundred thousand $30 season passes) then maybe the budget has gotten out of control. 

If I'm a publisher looking at the equation Revenue - Expenses = Profit, why do I need to attack the Revenue side of things? Why not tackle the Expenses part? Many of those now defunct 7th gen publishers failed because they spent beyond their means and tried to wedge their talent and intellectual property into a "AAA" model. Look at something like Hellblade, which recouped costs in three months. The studio kept costs down by maintaining a small development team, applying for loans (now paid back), finding tax breaks in the UK, and using savings (which existed because of financial foresight).

I'm of the opinion that micro-transactions (mtx) and loot boxes are unnecessary to keep games like Call of Duty and Battlefront afloat -- that it's less about securing commercial viability and more about filling coffers as quickly and effortlessly as possible. But even if we assume a dire situation where EA and Activision would close shop without mtx revenue, why do we need to accept it? Especially when, in 2017, it's been proven that mtx economies are having deleterious effects on game systems -- to the point where the temporary removal of loot boxes in Battlefront II necessitated a dramatic rebalancing of the game's economy and progression system. 

I am all for keeping the video game industry healthy and profitable. But I just can't defend invasive and predatory mtx practices as a way to maintain that profitability, especially when other, less exploitative solutions exist.

I never said we need to accept microtransactions, which is where your point falls flat. I'm just saying that I think a big part of reason why nearly every major publisher that remains today is looking more and more into alternate revenue sources (CD Project Red - has the microtransaction powered Gwent, Nintendo - Amiibo's and mobile games, Sony - has several games with microtransactions, same with Microsoft, Take Two - same thing, EA and Activision I don't even need to explain, and hell, even DLC overall is an attempt at the same thing) is because game budgets have risen without a corresponding rise in game prices. Like you say, there are other, less exploitative solutions, that's exactly why I propose raising game prices. Games are still a ridiculously cheap form of entertainment compared to other media. To diversify the portfolio of games you offer is also part of the solution, but for every Hellblade and No Man's Sky (both very financially successful, smaller budget games, even though NMS struggled in other areas), there are also plenty of games that end up as commercial failures. The successes have to not only pay for themselves, but bank-roll the riskier titles that sometimes underperform.



Teeqoz said:
Veknoid_Outcast said:

 

Kap stole my thunder ;)

But yes. Digital sales are on the rise, and publishers take a larger cut of those sales (plus they spend less on overhead).

There's even evidence to suggest that game prices should be lowered from $60 -- that $60 is a high enough threshold to deter a consumer altogether, resulting in a missed sale. A lower price tag would make the product more desirable, and instead of 50 people paying $60 for a game, you might have 150 people pay $40.

The point is this: there are other solutions to this budget problem, apart from "pass the expense on to the end-user in the form of loot boxes and micro-transactions." If a game's budget is so high that it needs to sell five million copies at $60 (plus a few hundred thousand $30 season passes) then maybe the budget has gotten out of control. 

If I'm a publisher looking at the equation Revenue - Expenses = Profit, why do I need to attack the Revenue side of things? Why not tackle the Expenses part? Many of those now defunct 7th gen publishers failed because they spent beyond their means and tried to wedge their talent and intellectual property into a "AAA" model. Look at something like Hellblade, which recouped costs in three months. The studio kept costs down by maintaining a small development team, applying for loans (now paid back), finding tax breaks in the UK, and using savings (which existed because of financial foresight).

I'm of the opinion that micro-transactions (mtx) and loot boxes are unnecessary to keep games like Call of Duty and Battlefront afloat -- that it's less about securing commercial viability and more about filling coffers as quickly and effortlessly as possible. But even if we assume a dire situation where EA and Activision would close shop without mtx revenue, why do we need to accept it? Especially when, in 2017, it's been proven that mtx economies are having deleterious effects on game systems -- to the point where the temporary removal of loot boxes in Battlefront II necessitated a dramatic rebalancing of the game's economy and progression system. 

I am all for keeping the video game industry healthy and profitable. But I just can't defend invasive and predatory mtx practices as a way to maintain that profitability, especially when other, less exploitative solutions exist.

I never said we need to accept microtransactions, which is where your point falls flat. I'm just saying that I think a big part of reason why nearly every major publisher that remains today is looking more and more into alternate revenue sources (CD Project Red - has the microtransaction powered Gwent, Nintendo - Amiibo's and mobile games, Sony - has several games with microtransactions, same with Microsoft, Take Two - same thing, EA and Activision I don't even need to explain, and hell, even DLC overall is an attempt at the same thing) is because game budgets have risen without a corresponding rise in game prices. Like you say, there are other, less exploitative solutions, that's exactly why I propose raising game prices. Games are still a ridiculously cheap form of entertainment compared to other media. To diversify the portfolio of games you offer is also part of the solution, but for every Hellblade and No Man's Sky (both very financially successful, smaller budget games, even though NMS struggled in other areas), there are also plenty of games that end up as commercial failures. The successes have to not only pay for themselves, but bank-roll the riskier titles that sometimes underperform.

I believe the initial point that proved controversial was that mtx are necessary for AAA games to maintain profitability. Neither of us can prove or disprove that point. For every inflation argument there's a digital distribution argument. For every Activision public relations campaign insisting on the necessity of mtx there's an EA note to investors stating the opposite. For every AA studio that flew too close to the sun and fell, there's a Ninja Theory which proved the viability of the space between indie and AAA. There's just no definitive proof either way. Without crunching the numbers, we can't say that rising game budgets and static game prices have put an undue burden on publishers.

So neither of us can claim victory on that point.

A more fruitful discussion comes from "should they" instead of "must they." Must they? I seriously doubt it. Should they. Hell no :P



Around the Network
Veknoid_Outcast said:
Teeqoz said:

I never said we need to accept microtransactions, which is where your point falls flat. I'm just saying that I think a big part of reason why nearly every major publisher that remains today is looking more and more into alternate revenue sources (CD Project Red - has the microtransaction powered Gwent, Nintendo - Amiibo's and mobile games, Sony - has several games with microtransactions, same with Microsoft, Take Two - same thing, EA and Activision I don't even need to explain, and hell, even DLC overall is an attempt at the same thing) is because game budgets have risen without a corresponding rise in game prices. Like you say, there are other, less exploitative solutions, that's exactly why I propose raising game prices. Games are still a ridiculously cheap form of entertainment compared to other media. To diversify the portfolio of games you offer is also part of the solution, but for every Hellblade and No Man's Sky (both very financially successful, smaller budget games, even though NMS struggled in other areas), there are also plenty of games that end up as commercial failures. The successes have to not only pay for themselves, but bank-roll the riskier titles that sometimes underperform.

I believe the initial point that proved controversial was that mtx are necessary for AAA games to maintain profitability. Neither of us can prove or disprove that point. For every inflation argument there's a digital distribution argument. For every Activision public relations campaign insisting on the necessity of mtx there's an EA note to investors stating the opposite. For every AA studio that flew too close to the sun and fell, there's a Ninja Theory which proved the viability of the space between indie and AAA. There's just no definitive proof either way. Without crunching the numbers, we can't say that rising game budgets and static game prices have put an undue burden on publishers.

So neither of us can claim victory on that point.

A more fruitful discussion comes from "should they" instead of "must they." Must they? I seriously doubt it. Should they. Hell no :P

The original post just said it was too low, which led to publishers pursuing other ways of increasing revenue. None of the companies are in it just to break even and then have some lunch money left over. You take a rather big risk every time you publish a big game, so you should expect a decent return on your money.

We have data on inflation adjusted game prices, do you have numbers on the added earnings for digital sales? I know they benefit the big three, as they are the platform holders, but I was under the impression that most of the added margin from moving from retail to digital didn't benefit the publishers for this exact reason.

And once again, I'm not saying microtransactions are absolutely necessary. That their increased prevalence, along with other attemps to find new revenue streams, are in part caused by lower inflation adjusted game prices coupled with higher game prices though, is something I don't doubt.

We both agree that it's a problem. I'm just offering a solution other than to trust the good of EA's heart.

As for how you keep quoting EA's statement about Battlefront 2, consider their statement. It's not in relation to recouping the game's development budget. It's about their overall financials. Now, if we don't believe stopping microtransactions impact EA's earnings at all, then we also paradoxically think that EA make no money from microtransactions. Because that's a rather unlikely situation, this leads us to conclude that what EA actually meant was that the lost earnings from a short break in microtransactions for that single title wouldn't impact their total earnings for the entire year all that much. Do you, after all, think EA would say the same thing if laws were passed preventing EA from including microtransactions in any game? That it would have no impact on earnings? Of course it would. That's why that argument doesn't hold up to scrutiny.



RolStoppable said:

Isn't that what third party publishers are already doing? It's becoming more common that games launch in three tiers ($60, $80-90, $100-150) and it seems a given that the $60 tier will contain less and less as time goes on and the middle tier will become what the $60 tier used to be.

Sure, you could argue that "Deluxe editions" and editions that include season passes are effectively an increase in game prices.

Ka-pi96 said:

Wouldn't raising game prices carry a large risk that even more end up as commercial failures though? There's plenty of people that won't pay full price for a game already, raise the prices even higher and less people are going to be buying new games day 1 and instead they'll wait for price cuts, which as we've seen do inevitably come when a game underperforms sales wise.

Besides, even if they did raise game prices, there's no chance at all that would mean they stop putting in microtransactions and loot boxes.

The thing is, though, that the trends point to more and more people not waiting for pricecuts. Games are, in general becoming more frontloaded.



Ka-pi96 said:
Teeqoz said:

Sure, you could argue that "Deluxe editions" and editions that include season passes are effectively an increase in game prices.

The thing is, though, that the trends point to more and more people not waiting for pricecuts. Games are, in general becoming more frontloaded.

Is there actually evidence to suggest that game sales overall are becoming more frontloaded? Or just physical game sales? It makes sense to me that digital sales would be less frontloaded than physical, given that physical copies will eventually stop being produced, they're much more attractive as impulse purchases, and of course there are some pretty good digital sales later on in a games life. It could perhaps be that with a greater shift to digital it appears games are more frontloaded, but that's more because later buyers are much more likely to go digital than they were previously.

Besides, Gran Turismo Sport is a very recent example of a game that initally underperformed, had some price drops and then its sales picked up.

Sure, I'll give you those points - we don't have data for digital, and it seems likely that the digital ratio of a title should increase over time as the game remains easy to find digitally but becomes harder and harder to find phyiscally.

As for GT Sport, well, you can always find a few outliers, but they are just that - outliers.

Last edited by Teeqoz - on 02 January 2018

Teeqoz said:
Veknoid_Outcast said:

I believe the initial point that proved controversial was that mtx are necessary for AAA games to maintain profitability. Neither of us can prove or disprove that point. For every inflation argument there's a digital distribution argument. For every Activision public relations campaign insisting on the necessity of mtx there's an EA note to investors stating the opposite. For every AA studio that flew too close to the sun and fell, there's a Ninja Theory which proved the viability of the space between indie and AAA. There's just no definitive proof either way. Without crunching the numbers, we can't say that rising game budgets and static game prices have put an undue burden on publishers.

So neither of us can claim victory on that point.

A more fruitful discussion comes from "should they" instead of "must they." Must they? I seriously doubt it. Should they. Hell no :P

The original post just said it was too low, which led to publishers pursuing other ways of increasing revenue. None of the companies are in it just to break even and then have some lunch money left over. You take a rather big risk every time you publish a big game, so you should expect a decent return on your money.

We have data on inflation adjusted game prices, do you have numbers on the added earnings for digital sales? I know they benefit the big three, as they are the platform holders, but I was under the impression that most of the added margin from moving from retail to digital didn't benefit the publishers for this exact reason.

And once again, I'm not saying microtransactions are absolutely necessary. That their increased prevalence, along with other attemps to find new revenue streams, are in part caused by lower inflation adjusted game prices coupled with higher game prices though, is something I don't doubt.

We both agree that it's a problem. I'm just offering a solution other than to trust the good of EA's heart.

As for how you keep quoting EA's statement about Battlefront 2, consider their statement. It's not in relation to recouping the game's development budget. It's about their overall financials. Now, if we don't believe stopping microtransactions impact EA's earnings at all, then we also paradoxically think that EA make no money from microtransactions. Because that's a rather unlikely situation, this leads us to conclude that what EA actually meant was that the lost earnings from a short break in microtransactions for that single title wouldn't impact their total earnings for the entire year all that much. Do you, after all, think EA would say the same thing if laws were passed preventing EA from including microtransactions in any game? That it would have no impact on earnings? Of course it would. That's why that argument doesn't hold up to scrutiny.

Good points, and a really great debate :)

Maybe the truth is somewhere in the middle? The expanding gap between static game prices and ballooning game budgets necessitates creative financial solutions to ensure comfortable profit margins, but, at the same time, the importance of mtx, lootboxes, and pay-to-win economies to the continued commercial viability of big-budget games is exaggerated by AAA publishers?



Veknoid_Outcast said:
Teeqoz said:

The original post just said it was too low, which led to publishers pursuing other ways of increasing revenue. None of the companies are in it just to break even and then have some lunch money left over. You take a rather big risk every time you publish a big game, so you should expect a decent return on your money.

We have data on inflation adjusted game prices, do you have numbers on the added earnings for digital sales? I know they benefit the big three, as they are the platform holders, but I was under the impression that most of the added margin from moving from retail to digital didn't benefit the publishers for this exact reason.

And once again, I'm not saying microtransactions are absolutely necessary. That their increased prevalence, along with other attemps to find new revenue streams, are in part caused by lower inflation adjusted game prices coupled with higher game prices though, is something I don't doubt.

We both agree that it's a problem. I'm just offering a solution other than to trust the good of EA's heart.

As for how you keep quoting EA's statement about Battlefront 2, consider their statement. It's not in relation to recouping the game's development budget. It's about their overall financials. Now, if we don't believe stopping microtransactions impact EA's earnings at all, then we also paradoxically think that EA make no money from microtransactions. Because that's a rather unlikely situation, this leads us to conclude that what EA actually meant was that the lost earnings from a short break in microtransactions for that single title wouldn't impact their total earnings for the entire year all that much. Do you, after all, think EA would say the same thing if laws were passed preventing EA from including microtransactions in any game? That it would have no impact on earnings? Of course it would. That's why that argument doesn't hold up to scrutiny.

Good points, and a really great debate :)

Maybe the truth is somewhere in the middle? The expanding gap between static game prices and ballooning game budgets necessitates creative financial solutions to ensure comfortable profit margins, but, at the same time, the importance of mtx, lootboxes, and pay-to-win economies to the continued commercial viability of big-budget games is exaggerated by AAA publishers?

Yeah, I think that's right. And I can assure you, I'm no more a fan of microtransactions than the next guy