The Recent Price Increases For Games Are Likely Coming From Publishers
What with the recent Switch 2 reveal and the subsequent increase in game prices, we've now seen something similar from Microsoft for the Xbox.
While this may initially appear to be the fault of Microsoft or Nintendo, it's far more likely that this is coming from publishers to make up for their recent losses.
In that, the massive and ongoing layoffs across gaming, with Electronic Arts announcing another 300 layoffs, of which a chunk were from a new Titanfall game, show that publishers are still in a very difficult position financially.
This is because around a decade ago, publishers sought external funding for massive AAA games. With many of those games finally released and having spectacularly failed in terms of sales, publishers now have to pay that money back.
That's what is driving this ceaseless need for layoffs; publishers need the money to pay back their investors.
So when game prices take a noticeable hike, it's clear that publishers are behind this. For instance, the main reason Microsoft gave was that the increased prices are needed to pay for the 'rising costs of game development'.
With most developers running on a skeleton crew following all these layoffs, it's clear these 'costs' are likely money needed to pay off disgruntled investors who were duped by publishers who promised a AAA pot of gold at the end of a gaming rainbow.
Now, part of this increase has been attributed to gaming not keeping pace with inflation. However, I am sceptical that this is the root cause of what we are seeing. Yes, game prices have fallen behind inflation, but this isn't a new thing, and having it rectified alongside industry-wide layoffs is dubious at best.
The point here is that getting angry at Nintendo and Microsoft is not going to help, simply because they aren't the ones who need this price increase in the first place.
Platform holders take a 30% cut, on average, on every game sold on their system, so these price increases wouldn't help them as much as they would each of the respective publishers, who are now deeply in the red.
In short, if you want to be constructive in your feedback to the industry, complain to publishers over these game price increases, as that is where this is coming from.
Follow me on X, Facebook and YouTube. I also manage Mecha Damashii and am currently featured in the Giant Robots exhibition currently touring Japan.
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