What if Games Cost $90 Each?

Over the past couple of weeks there's been a storm brewing in the UK. The storm is called ‘Modern Warfare 2' and the forked lightning is the fact that Activision is raising its RRP to £54.99 – that's around $90! Needless to say, the gaming community is spitting blood. And that's blood that can't afford to be spit in the middle of a recession.

It seems the financial crisis is hitting UK gamers twice. The dwindling clout of the good old British Pound means publishers are seeing their UK profits take a pounding, if you'll excuse the pun. This of course, means they have to push the price of games up. Doesn't it?

No, actually, it doesn't.

I can already hear GiN's very own business know-it-all, Nate saying, "blah, blah business models, blah, blah simple economics, blah, blah looking after profits." Frankly, I don't want to hear it.

Okay, so the story is that most games in the UK cost around £50, which is not to be sniffed at in these dark days. Of course, back in the PS2 days, games used to be £40, but the next generation brought about a sneaky price hike that nobody seemed to notice. Anyway, so we've all been paying £50 through gritted teeth until Activision thought it could pull a fast one with the old £5 hikeroo.

Modern Warfare 2 is one of those "eagerly anticipated" titles. This means Activision feels justified in squeezing gamers for every penny they've got.

In an interview with UK industry trade paper, MCV, THQ's EVP of worldwide publishing Ian Curran said, "Exchange rates between the Euro and the Pound are making it very difficult for publishers to show an acceptable margin in the UK."

Fair enough, times are hard. However, I think it's a bit soon to be expecting the consumer to pick up the slack, especially while people are losing their jobs and trying to keep a roof over their head.

My vitriol began to subside until I read the publisher, spokesperson's old standby. Curran told MCV, "Also, development costs for next gen software has increased at a time when the take up on these machines is slower than expected and therefore the opportunity to sell more units is limited. The increase in cost of goods due to the weak pound has added to this burden and therefore, something has to happen to ensure publishers' return on their investment."

It's always the old development budgets excuse. These days games budgets are big, going into tens of millions of dollars. However, movie budgets are stratospheric in comparison – running to 100s of millions. For instance, Pirates of the Caribbean: At World's End cost $300 million. Now that is serious cash, but I can buy the DVD for £16.99. Is it just me, or does there seem to be an imbalance there? Games cost less to make, but more to buy.

I understand that the gaming experience is much longer, so in terms of value for money it could have the upper hand. I don't dispute that there is an argument for games to be more expensive than DVDs. But over three times more expensive, when they can cost ten times less to make? Er"excuse me if I think that sounds like daylight robbery.

I know it's not as simple as all that, but UK consumers seem to get financially screwed every way you turn. And I'm not the only one greeting the price hike with some despair. Games retailers and consumers alike are speaking out against the decision. Activision is simply trying to boost profits on what is set to be a huge release this year and it has every right to, but it doesn't mean we have to like it.

EA has already said that it won't be following the same model. Hopefully, most publishers will hold firm on their current RRPs, otherwise UK gamers will have to start seriously picking and choosing their purchases.

The more expensive games become, the fewer titles I buy. If I'm paying around the equivalent of $90 for a game, I want to be sure it's going to be good and I mean bloody good. It seems that British gamers will have to vote with their wallets – mid-recession that extra £5 could tip the balance for many. I guess it's a question of how much you think MW2 is worth. Let the blood-spitting commence.

Most played: Bioshock

Most wanted: Assassin's Creed 2

Share this GiN Article on your favorite social media network:

Leave a Reply

Your email address will not be published. Required fields are marked *