Games this gen are also selling far better now then they were in the year 2000. Many franchises at the time like GTA were extremely young and didn't have an established brand or foothold in the market yet as it takes years for games to become extremely popular. The gaming industry has also grown exponentially since the PS2 era and will only keep growing.
GTA sales this gen obviously are killing the sales of the older GTA games right now, the COD franchise is more popular than ever, even Nintendo games are selling the best in their respective franchises on the Switch. Many other franchises like Uncharted, Witcher 3, NBA 2K and more are selling better than ever this gen, so that kinda makes up for the higher development cost of games over time, also there's DLC, Microt-transactions, digital distribution that cuts out the middle man, making more money for these developers.
1. "Games this gen are also selling far better now then they were in the year 2000."
Nowadays games are also far more expensive to develop than games in the 2000s. PS2 games only had a budget of a few millions. You'd need at least a million or two in extra sales to break even on 7th and 8th gen games. For EVERY SINGLE game.
2. "COD franchise is more popular than ever"
Where did you get that from? The best selling CoD games were from the PS3/360 era.
NPD source: https://www.shacknews.com/article/115860/call-of-duty-games-were-10-of-the-top-15-best-selling-titles-of-the-decade
3. "The gaming industry has also grown exponentially since the PS2 era and will only keep growing."
The gaming industry as a whole - yes, but the console market has NOT grown exponentially.
50% of the revenue comes from smartphone-, tablet- and casual browser games. How does that help the devs and publishers of console and PC games again?
4. "also there's DLC, Microt-transactions, digital distribution that cuts out the middle man, making more money for these developers."
Which was exactly the reason why the $10 raise didn't come earlier.
1. Developing costs have gone up, that's for sure - but the real increase in expenses for AAA video games has not been on the development side, but on it's marketing. For most AAA games, the marketing campaign actually costs at least as much as the development of the game itself these days.
Destiny for instance cost $140M to make, but with the ad campaign until launch included into the pricetag we're already at $500M. CoD: MW2 cost 44M to make and 250M total until launch, so over 200M for it's ad campaign. Heavy Rain cost a measly 16.7M€ (about $21M) to make, but Sony added another 25M€ for advertisement.
It's those ads that cost so much, not so much the actual games themselves. And those ad budgets keep on increasing.
2. In sales, that would be true. But in terms of revenue, CoD broke records las year, earning Activision over 1.1 billion dollar. No need for big sales if you have microtransactions...
3. So the console market didn't grow as fast as the other videogame markets. Your point being?
Also, don't just look at console sales. We're specifically talking about videogame sales and revenue here, and that one has grown quite a bit even on consoles due to digital distribution - and digital distribution leaves a higher margin for the publisher than retail...
Also, while 50% comes from mobile, look who owns those big names in mobile gaming: Yes, it's the same publishers as for the consoles, filling their pockets on either end with endless monetization schemes.
4. I'd much rather had preferred to have that $10 raise in price 10 years ago and even another $10 now on top of that than any of that monetization bullshit that Bethesda kickstarted with their fucking horse armor. We don't need both, one or the other is amply enough.
Edit: Also, this here: https://www.pcgamer.com/ea-tells-investors-turning-off-battlefront-2s-microtransactions-will-not-affect-earnings/
A company is not allowed to lie to their shareholders, so you can see that the big "we must increase the prices and add microtransactions to finance the games" argument is a big myth and nothing more. It's just greed, greed from the executives and from their shareholders who always want more, more and more.
Also, I'll give you this to read through: https://www.quora.com/Why-do-gamers-get-so-bent-out-of-shape-concerning-the-various-monetization-tactics-of-video-game-publishers
Last edited by Bofferbrauer2 - on 04 July 2020