Games consoles aren't terribly expensive as one off purchases. Looking at America your general purchaser could walk out the store with a console for under $200. However the console itself isn't terribly useful without games and acessories so you could easily tack on $50 for another controller and up to $50/60 (which is the typical price) for the games. If consumers are balking at paying $20-30 for a BR disc, then what about a game which costs 2-3* as much? It adds up to a quite considerable amount over several years. yes, in fact they are balking at the prices with software revenue down 23%, but total units sold were only down by 4% year over year. Link .
This accounts for just present owners of the consoles who are having trouble stomaching the cost of games during this recession. This group includes the more avid gamers on the inside of this console generation who have shown a tendency to be more willing and able to make gaming purchases. However from the outside you have a group of people whom have to take into account the price of games, consoles and accessories and consider them all as factors as for whether or not they wish to jump into a console purchase. Console gaming competes with other entertainment mediums, its not simply 3 islands of Wii, Xbox 360 and PS3 gaming paradises. Console gaming is a considerable investment of both time and money and it has competition from every other type of media and entertainment you can think of.
I believe that both the console manufacturers and the content producers have to learn and understand that a little price discrimination is good for the soul. With books being the closest form of media to games in terms of the usage patterns and time investment you can see how they have an initial print of higher cost hardback books for the hardcore book readers and people who have to buy the book straight away, followed soon after by a paper back release. With games this process is haphazard, theres no assurance that a game will drop in price in any particular time frame or even not be completely withdrawn from the market before recieving a price drop.
If content producers are only going to willingly cater to the people who are both willing and able to purchase games at the full price of $50/60 they will cut themselves out of the parts of the market where people are willing to pay less for a game but still enjoy the experience. This is almost 100% lost revenue for them because the extra cost to produce one more copy of a game is minimal next to the price they charge at retail. So what they need is to throw the people a bone and stick to fairly precise modus operandi in their pricing structure. Everyone knows that movies get a cinema release followed by a DVD release followed by a Cable TV release and finally over the air broadcast. With games theres no such structure, so why not have a full price release, followed by a download only release at say $40 3 months after retail and finally a platinum $20-30 release after that? If people get some certainty then they'll know to wait if the price is too high rather than forgetting about the game entirely.
Tease.










