Given the current economic downturn, many people have to curtail their luxury spending, and unfortunately, that includes cutting into our leisure activities. However, one analyst believes we may enjoy temporary relief with a software price cut.

As GameDaily reports, Signal Hill analyst Todd Greenwald hinted that the standard $59.99 price point for next-gen software may be in danger. This could be construed as good news from a consumer's standpoint, but from the publisher's perspective, this could be a devastating move. The profit margin on new software isn't that great to begin with, and says Greenwald:

"To us, the biggest risk facing all publishers is the demise of $59.99 pricing for front-line 360 and PS3 software titles. With all of the price-reductions made during the holiday season, funded jointly by both retailers and publishers, there is obviously a concern that $59.99 goes away, which would be fairly devastating for margins, as development and publishing costs would stay virtually flat, while sales would take a 20% hit."

However, despite all this, publishers really aren't having any trouble selling new games (well, provided the game is good). Last year's financial numbers showed a 20% growth and most analysts are predicting that the slumping economy can't really hurt the "cocooned" game industry. Until the $59.99 price point becomes a legitimate drain, we can't really can't see an across-the-board price cut on software. You might see more retail sales, but that's about as far as things will go…we're not analysts, though. What do we know?

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NoSmokingBandit
NoSmokingBandit
12 years ago

$60 is fu**ing ridiculous for a game anyway, especially when dev's are getting paid to put ads in…
Far Cry 2 featured some very tasteful Jeep logos on the vehicles, but did that save me any money?" Of course not! Did it make the game any better? According to a GameInformer interview, Far Cry 2 is missing alot of the 'polish' they originally intended.

Several of the THPS games had ads and they still cost normal price (i cant even remember what i paid for them, haha).

Burnout Paradise, however, got it right. I can pick it up for $20 now, and im ok with ads for a game priced that low.


Last edited by Ben Dutka PSXE on 2/3/2009 11:34:17 PM

englishgolfer
englishgolfer
12 years ago

i'd love to pay $60 for a game. here in sweden gamestop takes $85 for a new ps3 game. ouch! (lucky me i buy from amazon in england…)

SarahPalinMILF
SarahPalinMILF
12 years ago

you're really getting screwed man…that sucks

NoSmokingBandit
NoSmokingBandit
12 years ago

Yeah, but whats the exchange rate? You cant just compare raw numbers.

englishgolfer
englishgolfer
12 years ago

i took today's exchange rate (8kr = $1)…. of course it does go up and down. when the exchange rate was at it's worst then games were costing $116! (6kr = $1)still you can't really compare these prices as i get a salary in kronor. like i wrote i get most of my games via amazon in england (but will be picking up kz2 here as it comes out 2 days before england). anyway, the moral of the story is if you're ever in sweden don't buy games as a souvenir!

YesterdysRising
YesterdysRising
12 years ago

That would be sweet but honestly, I don't mind paying 60 bucks for a good game. It's well worth it to me. Although, there are some games that definitely don't deserve a $59.99 price point.

rell
rell
12 years ago

Crh7386 and thats what I don't understand boring and corny games cost $60 thats crazy.

K ASH
K ASH
12 years ago

You guy there in europe & NA are lucky, you have more sales on games and most game dont take 3-4 to go into the bargain bin. I dont mind if games were sold 4 less though im not sure if it going to affect us here in South Africa. If any of u guys r from SA drop me some mail.

Schmitty
Schmitty
12 years ago

im south african 🙂 born there living in new york though, where you at?

eLLeJuss
eLLeJuss
12 years ago

59.99 is too much.. Great games doesn't need to be expensive like SSBB. it wasnt $59.99 and it was great :). And there are sucky games out there too.. so yeah. they should cut it to around 49 or something

laxpro2001
laxpro2001
12 years ago

I agree with you that great games don't need to be expensive and Brawl was amazing IMO… however 50$ is the standard price for a wii game. Had SSBB have sold for 40$ this your statement I felt would have applied better.

Now if companys began to publish games at a lower price range people might be suspicious. However if the publisher did this for all games they published I feel consumers wouldn't suspect anything of lesser quality.

So basically they can't price games they publish differently otherwise it will drive consumers away from the lower priced one.

blitz30952
blitz30952
12 years ago

New games here in NZ cost about $120.. but in NZD 😛

Banky A
Banky A
12 years ago

Yeah. Fallout 3 and Call (co*k) of Doody: World of Whores are still $128 NZD in someplaces.

And 5 days ago I got Resistance 2 for $70NZD, a deal which I couldn't refuse.

😉


Last edited by Banky A on 2/3/2009 11:40:57 PM

coverton341
coverton341
12 years ago

Wow what is the exchange rate over there to USD?

cadpig
cadpig
12 years ago

I would gladly welcome a price cut on my games.

GuernicaReborn
GuernicaReborn
12 years ago

The price is fine where it is now. If development costs come down, I think that a $10 price drop may be in order, the same way we had it last gen when games went down to $40 near the beginning of the current gen. I think it took 4 years for that to happen.

Blaiyan
Blaiyan
12 years ago

Every games is not worth the same imo. There are alot of games i'd never buy at $60. Sports and racing games should be $40.

isaya85
isaya85
12 years ago

$49.99 was a decent price for a game i would happily pay that

PSN ID Biggest_GMoney

somethingrandom
somethingrandom
12 years ago

If the price cuts in the US, I doubt it will in Canada as the canadian dollar is about 80cents to the american dollar as of now. Our games will likely stay at $59.99.

Tristan
Tristan
12 years ago

Times like these, I'm not gonna buy games that's just going to end up in the shelves after a few hours of playing.

I haven't bought any new game this year. Since I'm not really into the first-person shooter/action genre then it'll be months from now til I'm buying a new game (Depends on when Square-Enix' gonna release FF13 outside Japan).


Last edited by Tristan on 2/3/2009 11:07:46 PM

hart_attack
hart_attack
12 years ago

april 2010

Tristan
Tristan
12 years ago

Oh gosh that's really a long time

hart_attack
hart_attack
12 years ago

ya i know. but it'll be out late 2009 in japan

LCF
LCF
12 years ago

The Dreamcast was the 1st to set a standard price of $50 U.S. So for this HD era of gaming, It's only right for it to go up $10. The technology involved takes alot of money and TIME. I'd rather pay $60 for good quality game, then some half-ass shovel-ware. The problem that I have seen this gen most of all is the impatience of this gamer generation. So inturn publishers push the developers to get the product out the door.

As a result you get games out the door with bugs. Or they could be like Epic and microsoft and don't believe in testers. Then it ends up with alot of patches.

So like I said, I don't mind paying the $60 for a game as long it's a good quality game. But on that token this gen has just been riddled with bugs. I blame the general gaming community on this one for having no patience.

KevinCairo
KevinCairo
12 years ago

$20 or even $10 would definitely have me increasing the size of my games-to-be-played stack quite a bit. I'd honestly be surprised if the increase in sales couldn't justify a $10-ish price cut.

When places like Gamestop sell used games, do the publishers get a cut? If not, a price cut would definitely sway people towards buying new and could be potentially helpful.


Last edited by KevinCairo on 2/3/2009 11:31:15 PM

hart_attack
hart_attack
12 years ago

no publishers dont see any money of used game sales, that is straight into gamestops pockets

Ben Dutka PSXE
Ben Dutka PSXE
12 years ago

I would like to point out to all the YOUNG people here that video game cartridges 15-20 years ago cost what games cost NOW.

…considering inflation and the VAST difference in games now and then, I'm not entirely sure anybody should complain. By all rights, they should cost close to a hundred bucks apiece.


Last edited by Ben Dutka PSXE on 2/3/2009 11:35:27 PM

KevinCairo
KevinCairo
12 years ago

Can't argue with that, but if they're deciding to cut prices, who am I to complain? Well, unless you wanna protest a price cut and insist they raise it instead!

LCF
LCF
12 years ago

Some N64 carts were high as $80. Like I stated Dreamcast set the standard of $50.

Renck
Renck
12 years ago

Reducing prices means less revenue for developers and they will be forced to reduce costs (less people, less quality). Therefore even if as customers we are thinking it will be good for our wallets at the end the gaming community will be impacted by poor games. That is without taking in considerations that developers will stop taking risks with new IPs.

coverton341
coverton341
12 years ago

You know what Ben is damn right about that. I opened up a bag full of old SNES games and found a receipt in one of the booklets that said $64.72

Didn't say what game just said video g: but that goes to show that like was said with inflation games are cheaper today. I would love to find out how much a 2600 cart costs in the Atari hay-day but for the life of me I can't find one receipt from then

Aftab
Aftab
12 years ago

Not to sound cliche (like "back in the day, we use to walk backwards, against the wind, barefoot in the snow from school in our underpants, uphill bothways while enduring radiation, fallout and aftershock from nukes"), but I remember when they use to stock nintendo games in those jewel, glass shelfs in stores like Marshalls. $50 was a lot of money those days, so even getting a couple games in the year was jackpot.

KevinCairo
KevinCairo
12 years ago

You say they make less money if they charge less, but that's not exactly true. Consider $50 vs. $60:
-Seeing the price drop is a good incentive to buy new games more readily
-Takes from used game sales
-More sales at a slightly lower price COULD potentially turn out a similar profit as selling slightly less at a slightly higher price

I'm not saying it would be a success, but it's not out of the question. Seriously, manufacturing the blu ray disk and case isn't very costly so moving more units that are still at a good profit could bring in a greater net profit if it really stimulates sales enough.

recks1jtp
recks1jtp
12 years ago

You're totally right Ben. I remember paying $50 for a new copy of the original Metroid for the NES back in the day! I have no problem paying around the same for such high caliber games these days.

NoSmokingBandit
NoSmokingBandit
12 years ago

15-20 years ago video games were still a bit of a niche market. Today almost everyone has some form of game console in their home. The demand has gone way up so the prices should go down, in theory that is.
If a game cost $40 im am convinced their profit margins would go up a bit. I am very picky about what games i buy (i only have about 1 dozen ps3 games) becuase nothing pisses me off more than spending $60 for a game that sucks. If they were $40 i would be willing to buy more games that im unsure about because i wouldnt have wasted so much on it if i end up not liking it.

Wage SLAVES
Wage SLAVES
12 years ago

A game over a year or so should standardly be cut just to compete with new titles. That is why some gems like Uncharted get left behind. I still haven't played it…

Renck
Renck
12 years ago

Nice to have GameFly, I can play several games without killing my budget. Of course, when you have games like MGS4, Killzone 2, Uncharted 2 and what about God of War 3, man 60 bucks is not much. If I take my family to watch a movie it will cost me a lot more!

Itdoesntmatter
Itdoesntmatter
12 years ago

Sports games need to be $40…new installments come out yearly….no gaming piece of software should cost $60 a year

migabyte
migabyte
12 years ago

Man, I remember paying 100$ (CAD)for Mario 3. I also remember N64 games costing like 120$ (CAD). Right now I live in South Korea, games are reasonably priced, but very difficult to find PS3 games. It's not that popular. All PC gamers.

daus26
daus26
12 years ago

Like some of u guys say, some are worth 60 bucks, some are not.

I say developers should just honestly sell games based on what they're worth. I sometimes feel like they sell games at 60 bucks just because the standard price point is that. However, I also believe there r publishers honest enough to release a game less than 60 dollars.. e.g: Ferrari Challenge n Kung Fu Panda. I also even believe some games are actually worth more than 60$.

So, 60 dollars is definitely the reasonable price point especially considering how some N64 games were at the same price. No complain here. Besides some stores give discounts to games sometimes, n if u guys dont know, the standard price for next gen games at costco is 54.99 so a 5-10 bucks incease from last gen's standards can only make sense.

Gabriel013
Gabriel013
12 years ago

I'd like to see a price cut and would buy more games if they were cheaper thus they would make less profit per game but they would sell more games. There is definitely room for movement in the pricing.

BigBoss4ever
BigBoss4ever
12 years ago

i already saw some price cut in EB games Canada today, lots of new games become 49.99 and some are at 39.99 with one trade in game.i.e. a new MGS4 is only 29.99 with one trade in game, resistance 2 is 39.99 with one trade in game, as well as other big titles. it is good for gamers like me, however, if such reduction render the developer incapable of even "break-even" in the long run, then the whole industry will suffer, which in turn will make gamers suffer. THAT is not wut I want to see.


Last edited by BigBoss4ever on 2/4/2009 2:26:35 AM

realmadpuppy
realmadpuppy
12 years ago

I really like to support my favorite developers but, I will only buy new if the game is exceptional. otherwise I just wait and get it on the used market from places like goozex or gamefly.

dveisalive
dveisalive
12 years ago

They need to put it back to 50 bucks by now, 2 games and thats way over 100 plus dollars etc…

OriginalSin
OriginalSin
12 years ago

You guys are still very lucky… I live in South Africa and our exchange rate is insane. So were you pay $60 per game we pay about R900 per game, that is crazy…. hehehe if you then think about Zimbabwe you'll actually pay about Z$ 5 000 000 000 000 (5 trillion Zim Dollars per game), imagine that….

skoda
skoda
12 years ago

Ok i know im probably not the only one to think this but theres this whole discussion of old school cartridges compared to the price of current day media well theres a reason they got away with it "back in the day" thats because legitametly it costs about 3 times to produce a cartridge then it does to produce a dvd/bd so that whole point is useless technically current day games should be significantly cheaper.

noshownogo
noshownogo
12 years ago

i pay $450TTD per game at the exchange rate of $1USD = $6.30TTD we rarely benefit from any reductions.

fundando
fundando
12 years ago

$49 would be nice. Maybe then I could afford the special edishes that I want priced at $69 since $79 is just too damn close to $100

fundando
fundando
12 years ago

$49 would be nice. Maybe then I could afford the special edishes that I want priced at $69 since $79 is just too damn close to $100

Geobaldi
Geobaldi
12 years ago

Another reason I try to get the PC version of a game if possible. Usually they are $20-30 cheaper than the console version.

Except EA titles. EA has been screwing the PC players for the last few years. All of their sports series, for example.