So Activision has announced an RRP of £55 for Modern Warfare 2 in the UK. Could this be the start of higher priced games? Currently, this is obviously an individual case in which Activision are trying to maximise profits on a game they know will sell great despite a higher than average launch price, however, other companies may soon have to sell at higher cost in order to simply survive. We all know the cost of game development has been shooting up over each generation whilst the cost of games has largely remained the same but can this trend continue?

With ever increasing development costs the only options I can see is either the merger of more publishers and developers so that each company can afford to take a few hits where games don't sell the ever increasing quantity needed to break even or for publishers to increase the price of games. I'm not sure I like the idea of the former as it could lead to the growth of giant publishing companies like EA and Activision, meaning less competition and also fewer new IP's which would be seen as high risks. So is raising prices the way forward? What would be the cut off point where you refuse to buy a game at a given price (I know I won't be buying MW2 at £55)?

I won't pay more than 65 euros for a game unless I really want it. If they increase their prices over here, I'll wait a bit untill the prices drop and/or buy more second hand games.

But as of now, the price increases are only in the UK because of the weak pound/strong euro. They should start using the euro.

They are only increasing Cod becouse they can get away with it due to hype and lasting appeal it has.
For other games it would only mean lower initial sales and more power to second hand market.

The only game i'd pay over $60 for is Valkyria Chronicles 2 or something related to FFVII.

Evens till, they would all lose money if the went TO far...

Start?? this generation has been nothing (hyperbole) but price increases for games

The problem is I don't see how this can be avoided. Although Modern Warfare 2's price increase is due to the weak pound and the fact that Activision can get away with it, I fear other companies will soon have to follow. If development costs continue to rise they have to find someway of making their money back. Perhaps digital distribution will slow down the problem as the devs/publishers can cut out extra costs involved in physical distribution.

I'm not sure things have got too bad yet. IIRC PS1 games were always around £40, in fact I remember Tekken 2 costing £55 when it launced (and yes I bought it at that price!)

Activision is doing that because call of dutty modern warfare and world at war are still selling good and MW 2 is highly antecipated . It´s just business.

You are very lucky for living in UK. The software is more expensive in rest of Europe. I´m portuguese and in my country a recent game is about 65-70 euros=56- 60£. A platinum game is 30 euros=26 £.

Anyway i´m also very lucky because i´ve got a friend working in England and he brings me games ( 3 times a year) at least half of the portuguese price .

I'm an Aussie, but we paid

GC, PS2, Xbox RRP was $100 but unless you shopped in the wrong shops, no game was ever above $90 (ignoring peripheral based games that is :P)

Wii RRP $100 and many new games actually release at that price. Many Nintendo games are still that price

PS360 $110.

So for a Sony or MS fan, we've effectively had a $20 jump, for Ninty fans only a $10

The only time we will see the price for games increase is when we see less kids riding bikes. I noticed yesturday at wall-mart, all the bikes were $100, even the really good ones. About a year ago, they were about $200 and up, for a freaking Bike.
It's not just bikes that are going down in prices it's mainly all sports, and other activitys kids play outside these days. As long as there are more people buying systems, and games, by 2010, games will be $79 instead of $69 (In Canada). Plus the Demand, If everyone wants a new Computer, the price will go up.
So people, take it easy on buying games. Do what I do, I rent games. :D