Games are too expensive

[Doctor VonSexMachine]

I don't usually buy new games.
I bought Fallout 3, and L4D2 right when they came out but they were worth it. I also bought Saints Row 2 at release for $50USD and regretted it. I learned not to buy games I'm not too sure about right at release. By waiting a while I was able to get great deals on L4D ($7), DOW-Dark Crusade(can't recall) and OverLord ($5).
Put simply, if a game costs too much, I won't buy it. It's not fun to grudgingly hand over hard earned cash for something that you hope will be entertaining. I'm lucky to know a lot of people who spend a lot of money and time on video games so that I can get a chance to take a look at something before I decide. They can only cost as much as people are willing to pay, so I'll wait around for prices to drop while others happily pay full price.


(And my PC isn't exactly cutting edge, either... so it all works out. A little bit of pity for the console users.)

 

[IamQ]

Hence why I buy used games but OH NO I'M KILLING THE INDUSTRY.

Though it's better than not buying games at all, yes? I really can't justify spending $120 on a video game.

Why would that be better than not buying any games at all?

 

[lwm3398]

Yeah, that seems pretty true. You can just buy it off Amazon or wait for the price to go down. Or do this-

-but that leads to obvious problems outlined in the comic. Used games seems to be the only answer.

 

[shadow skill]

The only problem i really see is difference in price of games between PC and console. I never really understood why the same game costs twice as much on a console as it does on PC.

Other than that i dont really feel the games are too expensive. There is plenty of games i personally consider crappy, but i just dont buy nor play them. I have the choice. Personally i do feel a big decline in game sales is in part also fault of how good actually are the supposed triple A products. In some cases it seems the triple A is just developement/marketing costs and not really gameplay value.

I remember several years ago, in poland games were about 10-15$ more expensive actually yet i bought more per year on avarage than now even tho my salary went up by noticeable ammount since then. Why? Because less games appeal to me.
Might be im just getting old and cranky and its harder to catch my attention just by pretty graphics and constant explosions, but maybe from the ammount of games that come out each month, there is so few actually worth playing i havent decided to buy a single one since ME2 release.

Royalty fees. On consoles there is a fee that people must pay to the console manufacturer to get their product on the system. It is how Nintendo and the like make their money in most cases when it comes to console games.

 

[Gindil]

I'm having trouble following your post. Within the article, the quote reads as two main forms of gaming: downloads and ownership.

Subscriptions

Look at World of Warcraft. You buy the game but you PAY to get an online service.

Ok, but what I believe he was alluding to was more the one hit wonder games. The series such as Need for Speed, Madden, Prince of Persia, or games such as Okami, but for simplicity's sake, he left out or didn't mention MMOs. Seriously, people are STILL playing Warcrack. It's an entity unto itself.

Remember back in Novemeber 2009 Activision were bitching about Dedicated Servers being too expensive for Modern Warfare 2? Well how about they sell the game and then charge per for "tickets" or even "season passes" to access dedicated servers.

Actually, they wanted their own IWNet, not because of dedicated servers being too expensive. Link [http://kotaku.com/5384057/new-modern-warfare-matchmaking-service-will-definitely-reshape-pc-community]

Sure they COULD sell each game at £90, no law is stopping them and I swear hand on heart I knew a manager of Gamestation that thought games should sell at that price... each game the same price as a console. His justification: no game should EVER make a loss, he ACTUALLY THOUGHT that every single game should break even. I said that the reason most games don't break even is those games are crap and deserve to fail.

But lets say that was done, then way fewer will be sold though that may not be a problem if the unit cost counteracts that. The problem comes as this will only increase the affect or re-selling of games.

Hate to say it but that guy fails economics forever. Games are the bread and butter of the games industry, not the console. Even at the $60 range, those games are sold at a pretty good markup to what they may be worth. Selling at a higher profit margin, though he can pursue it, is highly doubtful. Really, who would pay $90 for a game with nothing but a manual, multiplayer and nothing else? They'd have to give a lot more carrot for people to feel like it's worth the extra price.

Consoles are usually sold at a loss anyway, especially in the first year of a console. The Xbox was sold at a loss for ~3 years? I don't remember. Regardless, look what Microsoft did. It weaseled its way into the console market, and charges a fee to developers and consumers to play games online.

This is what it means to have a toll road, folks. They lose $200, they win back $300 on their profit sheet.

One of the reasons the pre-owned market for games is so huge is that people cannot afford games new and when they do get them it uses up so much of their income they need to sell the game they bought to bankroll the next purchase.

Which is I think another reason why the Gamestation Manager was being selfish as greater cost of games means a much higher trade in rate, which is where they make most of their money.

One think[sic] I don't think he considers is £90 per game may even completely destroy the retail business and it goes almost 100% rental based. £90 is a just too large an investment for one person to make in one game, it only ever becomes cost effective by doing the rounds amongst dozens of different users.

I personally have huge faith in Steam's network and the pricing and special offers.

Yes, Steam is a godsend. It's a small DRM, I own the games I pay for, and they update for free. I can't knock it. Now they just need Half Life 3 to come out and then Hell won't freeze over.

 

[PolarBearClub]

The only problem I see is the more well-known branded titles going up in price. MW2 cost ?70 here in Ireland, a tenner over the regular retail price of the most expensive games (obviously not including special editions). Then, they bring out the new map-pack at 1200 MP. Yet people still bought it all (including me for the game) which may only act as an incentive for other publishers to do the same.

 

[Katana314]

Hate to say it but that guy fails economics forever. Games are the bread and butter of the games industry, not the console. Even at the $60 range, those games are sold at a pretty good markup to what they may be worth. Selling at a higher profit margin, though he can pursue it, is highly doubtful. Really, who would pay $90 for a game with nothing but a manual, multiplayer and nothing else?

Sadly, I think everyone would if that were the normal price for games. They'd whine about it and boycott for a few days before giving in and wasting their money on it anyway.

 

[tombman888]

Hence why I buy used games but OH NO I'M KILLING THE INDUSTRY.

Though it's better than not buying games at all, yes? I really can't justify spending $120 on a video game.

basicly this. steam offers are nice tough, in stores L4D2 is $100 new and $80-$60 used, whereas on steam, its only $30, so yay.

 

[Utarefson]

Games are infinitely more expensive than they should be.

Games are information, they can be distributed infinitely and should therefore have no price.

You forgot that people worked on it.Work has value too!

 

[SpireOfFire]

i remember when ps2 games were $50. now xbox 360 games are $60. give it a few years and this generation of games will be cheap again. but for now, yes, games are too expensive.

doesnt stop me from buying them, though...

 

[slowpoke999]

Games in Australia range from 90-120+ Dollars. More for Consoles. Steam was our saving grace because even though we pay in US dollars they are still far cheaper. I say was because now Steam is being forced to raise their prices so EB games can compete.

Omg No no no no no, please for the love of god tell me you are kidding, that was a joke right, how the shit can steam be forced to raise their prices?The whole point of competing business is to put pressure on another one so people can flock to the one with cheaper prices, unless it is the game developers who are forcing steam to raise their prices there is no reason Steam should, if I'm right then shit like this is why Capitalism doesn't work.

*Sigh*It reminds me of that episode of South Park how Mr Garrison invents a new alternative to Airports and makes the Aiport business go bankrupt and the government steps in and shuts his invention down. Dear god I want to go back to the times when that was played for comedy.

 

[banksy122]

Snip

Omg No no no no no, please for the love of god tell me you are kidding, that was a joke right, how the shit can steam be forced to raise their prices?The whole point of competing business is to put pressure on another one so people can flock to the one with cheaper prices, unless it is the game developers who are forcing steam to raise their prices there is no reason Steam should, if I'm right then shit like this is why Capitalism doesn't work.

*Sigh*It reminds me of that episode of South Park how Mr Garrison invents a new alternative to Airports and makes the Aiport business go bankrupt and the government steps in and shuts his invention down. Dear god I want to go back to the times when that was played for comedy.

I wish I was joking, but Games such as Modern Warfare 2, Borderlands, Bad Company 2 etc have had all their prices marked up to around 70-90 Dollars, It is still far cheaper then install but far more expensive then what US and EU users of steam have to pay. Many games are still at US prices but new AAA games are getting their prices raised.

 

[awsome117]

In reality, every thing is too expensive. I mean, do you see how much they charge for a car? Or go grocery shopping for a "normal" week and see how much it costs.

Either way, every thing is too expensive, so I just learn to live with out.

 

[slowpoke999]

Snip

Omg No no no no no, please for the love of god tell me you are kidding, that was a joke right, how the shit can steam be forced to raise their prices?The whole point of competing business is to put pressure on another one so people can flock to the one with cheaper prices, unless it is the game developers who are forcing steam to raise their prices there is no reason Steam should, if I'm right then shit like this is why Capitalism doesn't work.

*Sigh*It reminds me of that episode of South Park how Mr Garrison invents a new alternative to Airports and makes the Aiport business go bankrupt and the government steps in and shuts his invention down. Dear god I want to go back to the times when that was played for comedy.

I wish I was joking, but Games such as Modern Warfare 2, Borderlands, Bad Company 2 etc have had all their prices marked up to around 70-90 Dollars, It is still far cheaper then install but far more expensive then what US and EU users of steam have to pay. Many games are still at US prices but new AAA games are getting their prices raised.

But why?Who's forcing them?The game Developers or some unknown evil entity sent out to the world to destroy fun?

 

[banksy122]

Snip

Omg No no no no no, please for the love of god tell me you are kidding, that was a joke right, how the shit can steam be forced to raise their prices?The whole point of competing business is to put pressure on another one so people can flock to the one with cheaper prices, unless it is the game developers who are forcing steam to raise their prices there is no reason Steam should, if I'm right then shit like this is why Capitalism doesn't work.

*Sigh*It reminds me of that episode of South Park how Mr Garrison invents a new alternative to Airports and makes the Aiport business go bankrupt and the government steps in and shuts his invention down. Dear god I want to go back to the times when that was played for comedy.

I wish I was joking, but Games such as Modern Warfare 2, Borderlands, Bad Company 2 etc have had all their prices marked up to around 70-90 Dollars, It is still far cheaper then install but far more expensive then what US and EU users of steam have to pay. Many games are still at US prices but new AAA games are getting their prices raised.

But why?Who's forcing them?The game Developers or some unknown evil entity sent out to the world to destroy fun?

It is the publishers of the games who are making Valve raise their prices to match Store Prices in Australia, I decided to re-read articles to make sure of what I was saying.
http://www.kotaku.com.au/2007/11/call_of_duty_4_oz_steam_price_doubles_overnight/
That is an example of the price jump.

When I was in USA I bought Left 4 Dead 2 on the 360 for my friend so he would have the uncensored version, I bought it for 60 dollars, when I came back to Australia, I looked for it on PC in store, it was 120 Dollars, so I decided to look on steam to see their price, 30 Dollars. Just another example of why USA really shouldn't complain about Game prices. I am not making fun of USA, to me, it is the greatest country on earth, but games there are good value compared to here, and you don't get them censored.

 

[EMFCRACKSHOT]

[

2. I live in Canada, where prices have gone as high a $70 per release, (this generation), when our dollar was below the American dollar by a fair bit. I agree that it isn't fair for other countries, but like you said, they can just import the game for less money. As far as collector's editions go, they aren't necessary purchases, and only those with the money to get them, should.

The problem with importing them cheaper from the states, if you live in europe at least, is that they don't work because of that pal-ntsc crap. Talk about a way to rip off the europeans XD
But I thank the gods for the deals on steam. Without them I would've only been able to get 1 or 2 new games this year. It does get more than a bit ridiculous sometimes.

 

[Zeriah]

2. I live in Canada, where prices have gone as high a $70 per release, (this generation), when our dollar was below the American dollar by a fair bit. I agree that it isn't fair for other countries, but like you said, they can just import the game for less money. As far as collector's editions go, they aren't necessary purchases, and only those with the money to get them, should.

Actually we can't import games, well 360 games at least. On the 360 something like 90% of games are region locked - Australia has PAL and America has NTSC which means most games from America will not work on our consoles. Game developers are so greedy that they really make it impossible to play games on the local consoles from other regions just so they can price gouge us to hell. We can import games from the UK (who also use PAL) which takes some of the sting out, but with taxes, shipping costs and UK's similar (though lesser) over-priced games it still ends up being far more than what Americans pay.

 

[Anarchemitis]

Demand and Supply. Cost of manufacture is about 8 dollars on a $60 avg. shelf price game approximately. 8.00 USD will pay for workers, effort, materials and time for the average Space Marine In Space Shoots Monsters and Robots 3 (or SMISSMAR3), plus a dollar for shipping, handling and Department or Outlet store distribution and salesmanship, making the remaining 51.00 USD pure profit, used for expansion of services and products. Which is to say that they certainly make a hefty return on every copy. Not as much as bottled water, but it's there.

They put prices like that simply because people will pay for it without complaining, and they won't change it unless lots and lots of people complain.
This is why Valve is making an inordinate profit off of games like Portal and Team Fortress 2. Their games are cheaper and therefore their profit is less. However their method of distribution is far easier and more accessible then other ones, making their sheer numbers of sold copies compensate for the low price and then some.

Seriously it could happen this decade that top range titles from big name console companies like EA and Infinity Ward make the AAA title for $30 US, but it's entirely dependent on who cares and how much. That means you; if you want it to happen, just get your voice out there where it matters.

 

[Treblaine]

Hate to say it but that guy fails economics forever. Games are the bread and butter of the games industry, not the console. Even at the $60 range, those games are sold at a pretty good markup to what they may be worth. Selling at a higher profit margin, though he can pursue it, is highly doubtful. Really, who would pay $90 for a game with nothing but a manual, multiplayer and nothing else?

Sadly, I think everyone would if that were the normal price for games. They'd whine about it and boycott for a few days before giving in and wasting their money on it anyway.

I think there was a misunderstanding, this guy wanted games selling for 90 POUNDS STERLING.

Games initially retails for £40 here, so the mark up this manager is talking about is like games selling for 140 US DOLLARS ins the United States!!!

Who the hell do you know that would pay $140 for a 6 hour game?!?!? Who the hell is willing to spend $140 on anything?!?

That's more than the cost of an iPod Nano.

 

[Fiend13]

It was my understanding that the biggest part the price is generated by advertisement and that kind of stuff. Maybe there is rather an error in the system than in the actual cost of making a game. Just thinking....