IDG: Other publishers are considering raising game prices for PS5 and Xbox Series X
Cost of development has increased between 200% and 300% while game prices have remained flat
Other game publishers are considering raising the price of games for PS5 and Xbox Series X, says games research firm IDG Consulting.
It follows the news that NBA 2K21 will be priced at $69.99 on the next consoles, $10 more expensive than it is on the current devices.
Speaking with GamesIndustry.biz, IDG President and CEO Yoshio Osaki says that game pricing has remained flat since 2005, whereas TV and movie pricing has increased significantly.
"The last time that next-gen launch software pricing went up was in 2005 and 2006, when it went from $49.99 to $59.99 at the start of the Xbox 360 and PS3 generation," he says.
"During that time, the costs and prices in other affiliated verticals have gone up."
Osaki says that next-gen console game production costs have increased by 200% to 300%, depending on the IP, studio and genre, but the prices have remained at $59.99. Meanwhile, cinema ticket prices have risen 39%, Netflix subscription costs have gone up 100%, and Cable TV packages have risen by 105%.
"Even with the increase to $69.99 for next-gen, that price increase from 2005 to 2020 next-gen is only up 17%, far lower than the other comparisons. While the cost of development and publishing have gone up, and pricing in other entertainment verticals has also gone up substantially, next-gen software pricing has not reflected these increases. $59.99 to $69.99 does not even cover these other cost increases completely, but does move it more in the proper direction."
He continues: "IDG works with all major game publishers, and our channel checks indicate that other publishers are also exploring moving their next-gen pricing up on certain franchises, for the same reasons outlined above.
"Not every game should garner the $69.99 price point on next-gen, but flagship AAAs such as NBA 2K merit this pricing more than others."
