This is likely disappointing news to gamers, but it is an understandable stance to take from the perspective of developers and publishers. Game development costs for new IPs and major franchise entries have increased by 100% to 200% since the launch of the PS3 and Xbox 360 in 2006, when the last substantial game price increase occurred. Many of 2010’s biggest titles came with jaw-dropping development costs. During that same time period, other forms of entertainment, such as streaming service subscriptions and movie ticket prices have steadily increased to match market trends, while other formats like DVDs and CDs have been almost completely obsolesced.
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While it is possible certain developers may stick to the established price point, 2K Games and Take Two announced that the PS5 and Xbox Series X editions of NBA 2K21 will go to retail at $69.99. When justifying the $10 jump to next generation hardware, 2K simply stated that it felt the price was fair for the franchise improvements on offer, though no next gen-exclusive features were announced besides superior graphical output.
Not all games will be following NBA 2K21’s example, however. Star Wars: Squadrons recently announced that it will be launching with a budget price of $39.99, which is a smart move for EA, as it has repeatedly come under fire for pricing models that many players find greedy, or outright exploitative.
Over the course of the last decade, a handful of smaller studios and independent developers have proven that you don’t need a large price tag to make a profitable game. Admittedly, these titles could be considered exceptions that prove the rule, especially since indie titles generally have a lower price point to begin with. Profitable standouts could actually become more common as a result of the price increase however, as gamers turn to budget options over blockbuster titles with juggernaut budgets.
Some sort of change is inevitable. Former PlayStation executive, Shawn Laden, recently stated that current AAA game development costs are untenable. One change that may help fight the rising costs of game development could be eliminating crunch, an increasingly common practice that takes a devastating toll on developers who must work overtime to meet tight deadlines. Many developers have also had to adopt a pseudo-freelance lifestyle, as studios often terminate employees upon completion of a project, which forces them to compensate by charging higher salaries while employed.
COVID-19 fallout will likely play a role in establishing a new normal as well. Between console price gouging due to hardware shortages and tighter household budgets, price increases that would seem reasonable in other years can easily become prohibitive during a pandemic. Until companies have successfully navigated the current economic landscape—where business practices have been complicated by social distancing, remote work, and ailing employees—the future of game prices is uncertain indeed.
If a widespread price increase for games occurs, the hike will likely arrive alongside the PlayStation 5 and Xbox Series X in late 2020.
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Source: GameIndustry.biz
