NBA 2K21 was recently listed at $69.99 for next-gen consoles, fueling speculation that all upcoming games on PS5 and Series X will see a price increase. Consumers are rightly frustrated, and now it seems that some industry analysts are just as worried.
One expert known as Daniel C — who is currently working as an International Business Developer for APPTUTTi and is a professional with over seven years of marketing experience — recently posted a lengthy statement as to why these rising prices might actually be harmful to the industry. They claim that because consumers need to invest in a console, PC, online services, and often an internet connection, publishers risk outpricing consumers if individual titles increase their prices. They're also competing with the rise of free-to-play titles, which could cause a massive divide between 'casual' and 'core' gamers.
For most markets outside of gaming, it makes sense for prices to go up over time. Rising costs of production and adjustments for inflation are the usual culprits for increased costs, but the price of games has remained steady of the past few years. Because of this, the industry has seen record numbers when it comes to profits and consumer engagement.
But a price hike puts all this at risk. At least, it puts certain titles at risk. Triple-A titles such as NBA 2K21 will probably be fine. These games have such a large player count that a minor price hike of $10 won't have much of an impact. Instead, Daniel C worries about the double-A or 'budget' titles who have a smaller target audience. Will they still be able to gain a foothold in this new marketplace? More importantly, how will the development process differ between games charging $69.99 and double-A games that need to charge less to survive?
Of course, we still don't know if all next-gen games will see this price increase. After all, Microsoft's Smart Delivery system gives players select games on both the Xbox One and Xbox Series X at the cost of a current-gen title.
One thing is certain though — consumers aren't the only ones worried about increasing prices. Worse still, we don't even know how much the PlayStation 5 and Series X will cost. Players ready to make the next-gen jump might want to prepare their wallets, as things are about to get expensive.
Source: LinkedIn