Earlier this month, 2K announced that NBA 2K21 would be $69.99 for the PS5 and Xbox Series X. This marks the first price increase in retail games since 2005. Since the price announcement, many publishers, developers, and gaming outlets debate whether massive AAA games match the same price for next-gen games. Unfortunately, I have to agree with large companies and that the price hike does make sense for several reasons.
Media Market Price Increases
In the last 15 years, the average video game price has stagnated while every other form of media and consumerism has risen either in terms of inflation or cost. The average movie ticket would cost at $6.50 in 2005, Netflix used to cost $8/month in 2014, and a completely spec’d-out iPhone 6S charge you $549 in 2015. If all of these items and services can increase in the last 5 to 10 years, why not games?
Video Game Production Costs
When building a new AAA game, the idea of the budget comes into play. No matter what, the game’s budget should be lower than the expected return on the game itself. But at the current budget of those games (roughly $80 million – $150 million), $59.99 is not a sustainable retail price. To meet expenses, several developers and publishing companies try pre- and post-purchase methods to squeeze more money out of their games. That’s why most games went from DLC and collector’s editions, almost as expensive as the game to the games-as-a-service models in the early 2010s. It would also explain why casino-like microtransactions and loot boxes implemented into games throughout the decade. Since large-priced DLC received negative feedback and the practice of loot boxes had gotten so bad that governments were stepping in, raising the base game’s price seems the best method.
The Market Has Been Here Before (Technically)
Surprisingly, this reason is entirely accurate. After using the Bureau of Labor Statistics’ CPI calculator, it appears that the values of games were more expensive compared to today. The price for a $45 NES cartridge in 1985 would be approx. $100, the price of a $50 PS1 game in 2000 would be almost $85, and even the price of a $60 Xbox 360 disc in 2005 would be nearly $80 today. $70 might sound like a high ceiling, but this ceiling has been higher than before.
Final Thoughts
So, will next-gen games be more expensive? Outside of the current state of the economy, this was a long time coming for the gaming industry. I agree with the price increase. Tons of people have families to take care of, and most don’t get involved with the industry for free. If the price didn’t change, we would have more greedy tactics in these games, less optimized games in general, or people would become less involved in creating games. Which, in turn, would hurt us as the consumer the most.