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Forums - Gaming Discussion - Is the market ready for a $500 console yet?

 

What should the PS5 & Xbox 4 cost at launch?

$500 (high specs) 45 60.81%
 
$450 (moderate specs) 8 10.81%
 
$400 (low specs) 21 28.38%
 
Total:74
Dulfite said:
Consumers: Everything else has gotten more expensive, but we will riot if game consoles and video games become more expensive!

Companies: Well everyone, looks like we have to cut some people from their jobs because we didn't sell ludicrous numbers that we need to make a profit off our game because the consumers don't understand inflation, good luck on your future endeavors!

Consumers: Why did you fire those poor people? We riot!

Companies: Ok, Ok! We won't fire anymore! We will release DLC after games to make up for the lost profit on ya'll not understanding inflation. Sound fair?

Consumers: No! NO DLC! That just means you didn't put in enough effort into the game in the first place! We will only buy game of the year editions at 87% off on Steam sale now! Take that you capitalist pigs!

Companies: Uh...

You failed to mention the main problem: explosion of cost in developing games. In 1990 Monkey Island was made by ten people. In 2018 God of War was developed by 270 people over four years. The costs are just incomparable, and number of gamers didn't grow in the same way as the costs. That is the core of the problem.



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I honestly am fine with $500... or more honestly. I don’t really care that much about the price of the console actually... what really matters are the games that are available. Games are what matters the most.



Conina said:

SKMBlake said:

How come my argument (which is said by many here) is weaker than saying "people are willing to pay more because of the inflation" ? Who the hell gives a bread about the inflation when they go shopping ?

When they are shopping for bread, they also are confronted with higher prices due to inflation:

http://www.in2013dollars.com/Bread/price-inflation

Did people stop buying bread?

OK, this is ridiculous. While I think ignoring inflation is wrong, you can't compare bread with a luxury item like video game consoles. People need to buy bread, even if they can't afford luxury. In fact increasing prices on basic items like food might cut short expenses for luxury.

Also looking at inflation alone is outright wrong. If inflation grows slower than incomes, then people have more moeny to put on luxury items. If it is the other way around, the people stop  buying luxury stuff.

The comparison with past consoles is also faulty, because most of them were bought by a small amount of people. Exactly as you would expect of expensive items. As I said before, intensive gamer like us pay pretty much everything for our hobby, but other people prioritize it lower. Each higher pricepoint leads to lost sales. How much is hard to gauge. But this fight about bread and inflation and stuff does really not help to answer this question.



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Mnementh said:
Conina said:

When they are shopping for bread, they also are confronted with higher prices due to inflation:

http://www.in2013dollars.com/Bread/price-inflation

Did people stop buying bread?

OK, this is ridiculous. While I think ignoring inflation is wrong, you can't compare bread with a luxury item like video game consoles. People need to buy bread, even if they can't afford luxury. In fact increasing prices on basic items like food might cut short expenses for luxury.

Didn't you see the smiley? It was a joke and a reaction to "Well, guess what, people don't give a bread about how consoles cost 20 years ago." and "Who the hell gives a bread about the inflation when they go shopping ?"

No, I'm comparing consoles not to food or other life necessary things, but to other luxory/entertainment price developments over the last decades. 



Conina said:
Mnementh said:

OK, this is ridiculous. While I think ignoring inflation is wrong, you can't compare bread with a luxury item like video game consoles. People need to buy bread, even if they can't afford luxury. In fact increasing prices on basic items like food might cut short expenses for luxury.

Didn't you see the smiley? It was a joke and a reaction to "Well, guess what, people don't give a bread about how consoles cost 20 years ago." and "Who the hell gives a bread about the inflation when they go shopping ?"

No, I'm comparing consoles not to food or other life necessary things, but to other luxory/entertainment price developments over the last decades. 

OK, sorry I unloaded my rant on you.



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Specs aside, history has proven time and again that a base SKU cannot exceed $399 and achieve widespread adoption. I suppose if both Sony and MS launched at $499, it would be interesting to see how that played out. But, if one of them is at $399, and the other at $499, I suspect the $399 will win handily. We've seen it over and over again.

And, yes, inflation..... But, inflation in video games has not been a thing.



I think the community is ready to accept a more expensive console, but I dont think its ready to accept a higher price of games. Specially with the GaS trend.



It takes genuine talent to see greatness in yourself despite your absence of genuine talent.

Knowing that the PS5 will be BWC i'm down to pay $500 for it :)



Mnementh said:

You failed to mention the main problem: explosion of cost in developing games. In 1990 Monkey Island was made by ten people. In 2018 God of War was developed by 270 people over four years. The costs are just incomparable, and number of gamers didn't grow in the same way as the costs. That is the core of the problem.

Profits have been ever-increasing as costs have been increasing... And the entire gaming market has been growing at around 2-5% a year.

So whilst people claim that "increasing costs" are responsible for "higher game prices" - They need to keep everything in perspective, there is simply more money to be made.



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Bofferbrauer2 said:

SNES only $200 at launch???

Yup.

Of course, $200 was worth a lot more back then here in the U.S., the equivalent of about $372 today.

Conina said:

SKMBlake said:
500/600$ PS3 and 500$ Xbox One already proved there is a symbolic pricing ceiling.

No, they didn't prove anything for 2020.

The only thing the PS3 proved in 2006/2007 was that the PlayStation brand and exclusives and the PS4 advantages (f.e. Blu-ray drive) were strong enough arguments for many people to justify a 50% higher price tag compared to the (at that point even better performing) Xbox 360.

The only thing the Xbox One proved in 2013/2014 was that the Xbox brand and Kinect 2.0 weren't strong enough arguments for many people to justify a 25% higher price tag compared to the (to this day better performing) PS4 with a lot more exclusives.

That's it.

Movie tickets have more than doubled since 1995. Has the number of sold movie tickets halved since then because "entertainment dollars aren't affected by inflation"? No, they have gone slightly down in the last years, but are still above the 1995 numbers:

Even though there are less and less reasons to go to the cinema with much improved and affordable home cinema/entertainment solutions in the last decade: bigger TV screens, 4K TVs, sound bars, Netflix, 4K streaming, very popular TV shows which are better than most new movies...

@bolded: Y'know, I was actually planning an article about changes in viewing habits at the box office. My preliminary research indicates that the Top 30 films of each year have generated steady ticket sales, with the losses all happening in films below #30. Also, the types of movies people go to see are different in terms of genre. I plan on starting the actual writing later this year.

SKMBlake said:
Oh gosh, stop comparing to other things and show inflation-related charts, that's all you do

At this point, there are only four possibilities:

1) Economics is not your strong suit.
2) There has been no inflation where you live in a long time (unlikely, as, if you are from France as your bio says, the Euro's value has declined due to inflation).
3) You simply haven't been working a job to buy your own stuff for a long enough period of time to notice the effects of inflation (I have been part of the workforce for 21 years now, and I have noticed it).
4) You're deliberately ignoring a basic reality of economics because it disproves your argument.



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