Aug 3, 2009

The almighty price point

So the next Call of Duty is going to cost $10 more than the last Call of Duty. For that matter, it's going to cost at least $10 more than any other game scheduled for release in 2009. Given that CoD4 has sold better than 13 million units so far, Activision/Infinity Ward probably haven't been struggling to break even. Assuming a development cost of $20 million, and a wholesale price of $35 per unit (a bare-minimum estimate), ATVI/IW made somewhere in the neighborhood of $435m on CoD4. Other publishers and developers are undoubtedly watching closely. If ATVI/IW get away with mugging game buyers this Christmas, the MSRP for most PC games will likely be $60+ by the end of 2010.

As you mull that over, consider this guy's theory that AAA titles should cost even more ... to the tune of £70. That's 118 American dollars at today's exchange rate, but the price increase in the US would be less. The Brits are being asked to pay £55 for Modern Warfare 2, which equates to about $93 on this side of the Atlantic. So a price increase to £70 over there would equate to price of around $77 here. I will note that Mr. "I think we're not charging enough" concedes that most people would be unwilling to pay that much for a game, but if $60 works in 2009, $70 in 2011 (for Modern Warfare 3) is well within the realm of possibility.

So, it seems the price point for video games is going to trend upwards, despite the fact that Valve increased its sales of Left 4 Dead by 3000% - over one holiday weekend - when it cut the price in half. In fact, they sold more copies of the game during that weekend than they did at its launch.

Still, Modern Warfare 2 will probably make at least half a billion dollars within 18 months of release, mostly on the strength of console sales. On the PC side of the ledger, however, Infinity Ward will have to content itself with bitching about the level of piracy (as they did with CoD4). That, I fear, is going to be the second lesson the video game industry learns from MW2: they can rape the console players with impunity, but PC players are still going to rape them back. ATVI/IW has apparently decided that PC retail sales won't justify the increased costs of packaging, shipping, etc. for the two "enhanced" editions of MW2, so those editions are console exclusives.

Although I doubt most PC gamers will care that they're missing out on all the superfluous junk that comes with the elevated price tag, they should. If more expensive games = more piracy = less and less PC support (in all areas, not just special editions), we may be at the dawn of an age when PC titles are all casual games and MMO's. The Call of Duty series is ready to cross that threshold; and it will, if IW declines to release mod tools for MW2.

Enjoy that high-end hardware while you can.

* * *

UPDATE: there's an alternative future out there.

2 comments:

  1. At the risk of revealing my morbid stupidity and engraved ignorance : (lol)
    I think good games should cost around 100 bucks each.
    It's a great way to filter out the shit...
    But I think that we, as gamers need to hold the torch up high.
    MUCH HIGHER THAN IW DOES.
    They are goat%$#@ing us ... they are bending us over and feeding us recycled horseshit.
    Don't take it !
    Start a revolution ! ! !
    DO NOT PURCHASE MW2 ... it's simple.
    Instead, buy World of Warcraft as a show of defiance - play WOW for 3 months from December to March ... let IW sweat and ponder why they suck so much.
    Meanwhile, you'll be hunting for candles with ITOESWATTER.

    To quote a very famous man :

    "I don't understand shit of it, but shouldn't be hard"
    "Should be good."

    "ya Well, Brandon, I didn't hurd you well"

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  2. On a more serious note :


    Why can't people see that we are being offered rubbish instead of original game content ?
    Where's the strategy ?
    Where's the Character Control ?
    Where's the Environmental treasure hunting ?

    There are no more good sniper spots, no more secret tunnels, no more out-thinking your opponents.... just stand and fight and hope you frag a couple nameless opponents before you get blown to shit - - - while your screen is filled with spam explosions and clutter.

    ARE THERE ANY GOOD DEVELOPERS LEFT OUT THERE ????
    I need to get off my ass and start a fucking map for Infinity Ward to use, just so I can play a game that has some goddamn intelligent layout for once in 5 years.
    I'm sorry kids, but I have zero interest in playing this 1980's Contra mod.
    LOL
    Just kidding, I will make Messiah buy me the game as soon as it comes out.
    But really ? Can't someone step up and create a decent game ? I WANT A NEW AMBERVILLE !!!!

    ReplyDelete