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The Asking Price: A Look At Video Game Pricing
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Monday, June 21, 2010

While recently reading an article in EGM about Metacritic and what it means to the industry, I was struck by one of things the author, Evan Shamoon, said. “…Committing to a [game] is a significant investment in both time and money (roughly $60 and 10+ hours for a game, versus, say, $11 and 2 hours for a movie)…” This observation immediately got me thinking about the length and price of video games.

Over the past couple of years, many people have debated over whether or not video games are too expensive at their current price point ($60 for a console game, $35 for a handheld). Currently, games vary in length and quality, and due to the poor economy, gamers have had more of a reason to wonder whether or not each experience is worth their hard earned money.

Is it fair for a six hour shooter to cost as much as an open world, sand-box game that spans over 40 hours? Should a lower quality minigame compilation be the same price as Super Mario Galaxy?

For as long as I’ve known, games have always been set around a fixed price. Very few go above, however even less go below. For some reason, developers get so fixated on the standard bracket that they don’t even see the option of providing a lower price point. Many, in fact, will stick with the generalization that “everybody else does it”, although every once in a while a gem rolls around with a surprising amount of “bang for your buck”.

Many developers could stand to learn from Capcom. Instead of charging full price for a more-than-complete upgrade, Capcom decided to keep the price for Super Street Fighter 4 lower ($39.99 MSRP), and thus give the game extra exposure to people who might not have been willing to fork out $60 for a copy. Super Street Fighter 4 combines both low price and extra content in an all-too-perfect manner. Released earlier this year, SSF4 shows that developers can still be successful with a lower price attached to their games.

More so than any other medium, downloadable games have effectively balanced content and price. In terms of digital downloads, there doesn’t really seem to be one fixed amount; it’s more typical to see roughly three different price points. Nathan Vella, president at Capy games – makers of Critter Crunch and Might & Magic: Clash of Heroes – summed it up perfectly in an interview with Gamasutra.

“…There are levels of digital download games…it’s like meal sizes. There's appetizer games that are like five dollars. Noby Noby Boy is, I think, a great appetizer. You play it for awhile, and you're immersed; but when you're done you want to play something else. And there's the meal games that are like $10 games: Flower and Castle Crashers and those type of games that you play for a sitting and then go do something else because you've used up your game-playing time.”

Vella then went on to explain that he felt Critter Crunch fell somewhere in between the two. Sort of like ordering two appetizers, but still leaving you less full than a meal. When hearing it put like this, it really makes you wonder why we don’t look at retail games in this same light.

It’s hard to know where price points with games will go, although I would hope that there are lessons that can be learned from others in the industry. Just because something is the standard doesn’t mean that veering away will result in failure. In actuality, there are many cases where breaking away from the norm leads to something greater than was ever expected.

 
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Comments (5)
1072475
June 21, 2010

Nice to see you on the site, Michael!

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June 21, 2010

Thanks Omri! Hope you like the article!

Franksmall
June 21, 2010

Mike! Welcome to Bitmob! I am glad you posted this!

Game pricing, and the idea of getting it down, it an issue near and dear to my heart. I have quit beating that drum as much lately, but need to keep the fight going.

Great post!

Robsavillo
June 23, 2010

Don't forget about PC games, which are always cheaper (starting price of $50) than their console counterparts. And frequent Steam sales means you can get them for even less not long after release. I got Rebellion's new Aliens vs. Predator for $30 just a month after it came out.

But I do see an issue with digital downloads -- games that are also released at retail will sell for full price as a digital download, which doesn't make any sense to me since the consumer gives up significant ownership rights when buying digitally as opposed to a physical copy.

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June 23, 2010

@Rob Definitely! All of those are very good points that I think need to be brought up in the industry.

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