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Gamers Happy To Pay $70 For Next-Gen Games, Analyst Argues

Imogen Donovan

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Gamers Happy To Pay $70 For Next-Gen Games, Analyst Argues

Featured Image Credit: Insomniac Games, 2K Games

Next-gen games are going to cost up to $70, which is a pretty penny, indeed. However, an analyst asserts that this is "fair market value" and gamers will "happily" shell out because "the market demand is the market demand."

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The $70 question has been tossed from company to company, with Sony confirming that Demon's Souls, Destruction All Stars and Marvel's Spider-Man: Miles Morales Ultimate Edition will be priced at $70 at launch. Call of Duty: Black Ops Cold War is another $70 game, and NBA 2K21 will also cost $70 for its PS5 and Xbox Series X versions. Publishers like Capcom and Electronic Arts are reluctant to pencil in their next-gen games' price tags, and will follow industry trends for guidance.

Call of Duty: Black Ops Cold War / Credit: Raven Software
Call of Duty: Black Ops Cold War / Credit: Raven Software

In spite of the hotness of this particular potato, NPD analyst Mat Piscatella says that $70 sounds like it's in the right region for a PS5 or Xbox Series X title. Speaking in the Virtual Economy podcast, he explained (as transcribed by VideoGameChronicles) that the rising expenses of development isn't the reason why we would see steeper prices for games. "If [companies] want to make the case that they're doing it because of X, Y or Z, I guess you could try to make that case, but when you look at the financial statements or the earnings reports, you can argue the other side," he elaborated. "But ultimately, the market demand is the market demand."

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He continued to say that prices for games have stagnated for more than a decade, and people would "happily" drop another $10 in order to reflect the "fair market value for the product." He did concede that some would "grumble" about such an increase, though. "There are so many options and entry points into gaming.... the really low cost options for people are there; free-to-play games, subscription spending... they're all there [and] there should also be more options that are more higher, or premium or even 'luxury' tier for certain types of games," said Piscatella.

Spider-Man: Miles Morales / Credit: Insomniac Games
Spider-Man: Miles Morales / Credit: Insomniac Games

"As an industry, we can price things whatever we want to price them, and the customer will decide what the right price is for them," said Xbox boss Phil Spencer on the debate. Of course, Xbox offers Game Pass and Smart Delivery, two alternate avenues for people who might not want to fork out $70 on day one. Game Pass makes games from Xbox Game Studios available as soon as they launch for a monthly fee. And, Smart Delivery lets players purchase the current-gen version of, say, Cyberpunk 2077, and its Xbox Series X version will unlock for free upon its launch.

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All in all, we do have more options than ever for how we play. However, the steep price tags of the new consoles and their launch titles may gate some gamers out of the next-gen experience. "We'll have to see how people respond," concluded Piscatella. "If nobody buys the $70 games then that will change real quick, but I have a feeling they're going to sell pretty well."

Topics: PS5, Xbox Series X

Imogen Donovan
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