Games companies want to make money. Their budgets have been going up, and while their audience has been expanding (especially in the last few years) the audience for the typical game has not.
You can see them combating this in a variety of ways:
* $50->$60 price jump (extract extra money from existing customers for the same value)
* Paid DLC (extract extra money from existing customers for little additional value)
* Online passes (extract extra money from indirect customers while (indirectly) lowering the resale price of direct customers' products
* Attempts to guilt trip used customers into buying new
* Chasing the big guns - trying to build their own megahit and barge in on the truly profitable market
The one thing these groups seem unable or unwilling to do is actually cut prices, in an attempt to exchange over-the-counter income for a larger customer base. This is especially egregious in the case of Activision-Blizzard, which is still selling Diablo 2 gold (10 years old!) for $30, and whose CoD series' price decline over time approximates a straight line more than the typical curve.
Nor do I expect the change in console generations from 7 to 8 to help with this. While all signs point to the industry at least partially following the example of the Wii in expanding outwards while keeping to marginal improvements in hardware, the fact that current budgets still exceed income in a large number of cases means that nothing short of a generational regression will bring an end to this problematic situation.
It is nonetheless interesting to note that PC teams do not seem to have this problem. The 300-strong team of CD Projekt Red found commercial success with just 1 million copies (albeit with their own virtual store to back them up); Piranha Bytes' Risen did well enough to ensure a sequel; and of course there are the numerous indie success stories of late.
I do not know how or why PC games seem to cost less than their console equivalents, but it does indicate that perhaps the solution for the next generation may not be as open-and-shut as "Develop better-looking games for faster hardware, sell for more money." I just hope someone listens.
You can see them combating this in a variety of ways:
* $50->$60 price jump (extract extra money from existing customers for the same value)
* Paid DLC (extract extra money from existing customers for little additional value)
* Online passes (extract extra money from indirect customers while (indirectly) lowering the resale price of direct customers' products
* Attempts to guilt trip used customers into buying new
* Chasing the big guns - trying to build their own megahit and barge in on the truly profitable market
The one thing these groups seem unable or unwilling to do is actually cut prices, in an attempt to exchange over-the-counter income for a larger customer base. This is especially egregious in the case of Activision-Blizzard, which is still selling Diablo 2 gold (10 years old!) for $30, and whose CoD series' price decline over time approximates a straight line more than the typical curve.
Nor do I expect the change in console generations from 7 to 8 to help with this. While all signs point to the industry at least partially following the example of the Wii in expanding outwards while keeping to marginal improvements in hardware, the fact that current budgets still exceed income in a large number of cases means that nothing short of a generational regression will bring an end to this problematic situation.
It is nonetheless interesting to note that PC teams do not seem to have this problem. The 300-strong team of CD Projekt Red found commercial success with just 1 million copies (albeit with their own virtual store to back them up); Piranha Bytes' Risen did well enough to ensure a sequel; and of course there are the numerous indie success stories of late.
I do not know how or why PC games seem to cost less than their console equivalents, but it does indicate that perhaps the solution for the next generation may not be as open-and-shut as "Develop better-looking games for faster hardware, sell for more money." I just hope someone listens.