Namco: Games Are "Too Expensive For The Audience"
According to one publisher, the industry needs to address falling software sales by changing the price of that software.
As Namco Bandai Partners vice president and head of sales and marketing Olivier Comte told MCV, publishers are "racing to find secondary business models to support retail sales." Some options include selling games at lower prices, delivering them digitally via episodes, and even trying to entice format holders to lower the cost to produce console and handheld tites. Comte wants all the big game companies to sort of pool their thoughts and opinions and discuss the future; he also compares games to music, an industry that makes money by sales of CDs (admittedly decreasing) and concert tickets. Film is in a similar situation. But gaming is a massive industry as well and as he points out, there's really only "one model," and it seems we require a "secondary model." Said Comte:
"I am convinced that in the future we must change the price of video games – they’re too expensive for the audience. With the cost of development and the retail margins, £40 is a fair price [to us], but for the consumer it is too much. From September to December there are three new blockbusters every week, and consumers just can’t afford to buy all that.
A good price of a game should be around £20 – but for this price we can’t make a ten to 15-hour adventure. So for £20 we should offer consumers four to five hours of gameplay, then after that we can make additional money with DLC."
It's sort of a double-edge sword, though, isn't it? If we want the huge blockbuster productions that push the hardware and provide the gamer with cutting-edge experiences, the cost to the developer will be high. Hence, the cost to us will have to remain the same. If we want to pay less, we'll probably get less. And we should remind everyone once again that 25 years ago, cartridges that boasted 1/1757th of the technology we have now cost the same as games do currently. Take inflation into account alongside that unbelievable technology increase, and we should all be down on our hands and knees thanking the powers that be that games don't cost at least $100.
Granted, game prices fell with the PlayStation generation; new games cost $40, then they went up by $10 increments over the next two generations. But even short games take at least 6-8 hours to complete and most take much longer...if you do the math, compare the prices of DVD/Blu-Ray movies, CDs, etc. to games, and how many entertainment hours we get, $60 isn't a bad deal. That being said, Comte is indeed right: most people can't afford to pay $60 just about every week.
5/20/2010 12:24:14 PM Ben Dutka
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Comments (110 posts)
bridgera
Thursday, May 20, 2010 @ 2:41:29 PM
chedison
Thursday, May 20, 2010 @ 4:53:19 PM
H8WL3R
Thursday, May 20, 2010 @ 5:46:00 PM
I'd possibly welcome a "second option" as long as it didn't take away our present choices.
So basically:
-People who've tried the demo and who want and can afford the full version of a particular title (in it's current physical format) now at the current price point are able to do so.
-Those that would prefer to download said full software can do so.
-Those who are on the fence or don't want to spend that amount up front can possibly go with the lesser priced main version and get the additional levels/chapters if they're so inclined (this would likely be digital and be another downloadable option).
So what say you PSXtremers?
ColTater
Thursday, May 20, 2010 @ 12:46:46 PM
Reply
On the downside though, I know that this doesn't directly help out the developers of the games, but I see it as GameFly paid thousands to get tons of copies of said game, so they are supporting the devs for me. I'm no sure if they get some sort of mass discount for buying games in bulk, but that doesn't concern me or my wallet.
Mr Bitey
Thursday, May 20, 2010 @ 1:20:05 PM
I have about 40 disk games, and a handful of downloaded ones. I beat most games in 1-2 weeks, and then never touch them again. I can't afford to keep paying the $60 twice a month.
If the games were $30-$40 I would continue to buy them new, but I just can't afford to at the moment.
Last edited by Mr Bitey on 5/20/2010 1:21:14 PM
Darwin1967
Thursday, May 20, 2010 @ 12:47:44 PM
Reply
ColTater
Thursday, May 20, 2010 @ 12:57:34 PM
piratedrunk
Thursday, May 20, 2010 @ 12:50:05 PM
Reply
Scarecrow
Thursday, May 20, 2010 @ 1:58:21 PM
Phoelix
Thursday, May 20, 2010 @ 2:11:42 PM
So then Arkham Asylum and Dead Space are of lower quality than, say, Haze, simply because they're available on multiple consoles (Haze was $60 at launch, right?)?
Granted, there are examples of multiplat games that I would consider to be less worth my time than exclusives, but just because a game is multiplat doesn't by default make it worth less (to me).
bridgera
Thursday, May 20, 2010 @ 2:45:18 PM
shadowscorpio
Thursday, May 20, 2010 @ 3:15:24 PM
Jawknee
Thursday, May 20, 2010 @ 4:05:01 PM
Vitron
Thursday, May 20, 2010 @ 6:10:58 PM
StangMan80
Thursday, May 20, 2010 @ 6:29:09 PM
MyWorstNightmar
Thursday, May 20, 2010 @ 1:09:30 PM
WorldEndsWithMe
Thursday, May 20, 2010 @ 3:57:25 PM
StangMan80
Thursday, May 20, 2010 @ 6:11:29 PM
johnld
Thursday, May 20, 2010 @ 1:00:26 PM
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Theres something that bugs me when i play MW2. I see buildings that were used in MW1 that were "updated" by making it look old. i wish they used new models for the new game and not just reuse stuff.
Underdog15
Thursday, May 20, 2010 @ 1:53:28 PM
Darwin1967
Thursday, May 20, 2010 @ 4:30:33 PM
StangMan80
Thursday, May 20, 2010 @ 6:36:17 PM
WorldEndsWithMe
Thursday, May 20, 2010 @ 3:58:33 PM
Underdog15
Thursday, May 20, 2010 @ 1:30:53 PM
Reply
fluffer nutter
Thursday, May 20, 2010 @ 1:48:31 PM
JackC8
Thursday, May 20, 2010 @ 1:44:18 PM
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I just wait until the prices drop. The only time I pay full price is if it's my favorite game in the whole world or something. I'm having a great time playing all the stuff that was hot 6 - 12 months ago, which I bought for $15 - $40.
ColTater
Thursday, May 20, 2010 @ 1:52:58 PM
Underdog15
Thursday, May 20, 2010 @ 1:51:55 PM
Reply
I'm still a fan of the actual collectors side of things. Seems like it's only a matter of time before we all stop buy the physical copies of games. That'll make me a sad panda.
fluffer nutter
Thursday, May 20, 2010 @ 1:53:46 PM
Condemnedsoul23
Thursday, May 20, 2010 @ 2:42:39 PM
What's strange to me is that all "new" technology is expensive and with time it gets cheaper like the PS3 has and Blu Ray movies but if PS3 games are on Blu Ray why hasn't the cost gone down on games? Iron Man 2 reportedly cost over 300 million dollars to make but I bet when it comes out on Blu Ray it will be 20 bux brand new. I know they recoup a lot of that back in the theater but these studios are huge with huge wallets so no one would hurt if these games were at least 10 dollars cheaper.Probably sell a lot more.
fluffer nutter
Thursday, May 20, 2010 @ 4:16:54 PM
fluffer nutter
Thursday, May 20, 2010 @ 1:52:27 PM
Reply
I know my statements only apply to the U.S. region as pricing is much, much higher in other countries and I don't know how some of the people can afford those prices. I tip my hat to you.
WorldEndsWithMe
Thursday, May 20, 2010 @ 4:02:47 PM
Alienange
Thursday, May 20, 2010 @ 2:15:07 PM
Reply
Last edited by Alienange on 5/20/2010 2:15:38 PM
Ben Dutka PSXE [Administrator]
Thursday, May 20, 2010 @ 2:39:44 PM
Alienange
Thursday, May 20, 2010 @ 5:39:02 PM
MyWorstNightmar
Thursday, May 20, 2010 @ 9:28:02 PM
frostface
Thursday, May 20, 2010 @ 2:19:25 PM
Reply
If the games are top quality they'll keep selling for years. Especially with the amount of games coming out, personally if I don't buy a game within a few weeks of it's release, I may have to wait for it 2nd hand with preference to forking out the full price for the latest blockbuster new release that may of moved up the list in the mean time.
Besides, by selling new games at cheaper prices means that they'll be actually collecting money from game sales, something they don't do with traded in games. To me this would be better then EA's plan to charge a few quid for the online gaming regarding 2nd hand game purchases.
I'm sure someone else will have the figures to support to dismiss this idea, but I'm personally of the opinion that 2nd hand games sell more, though I may very well be wrong. So why not compete?
Of course I just realised that the price of 2nd hand games would probably go down too so my point is really a non runner from the start. Ignore my post please :)
Last edited by frostface on 5/20/2010 2:22:48 PM
Highlander
Thursday, May 20, 2010 @ 2:28:52 PM
Highlander
Thursday, May 20, 2010 @ 2:24:43 PM
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"From September to December there are three new blockbusters every week, and consumers just canāt afford to buy all that."
OK, I get that there are some hardcore gamers who buy every game, but most gamers do not. Most people will buy fewer than half of the major games launched. The logic here seems to be that $60 is too much for folks to drop every week - and it is, I agree. But how about $60 a month? Remember gaming is a luxury, not a necessity. If they push the price lower then something on the other end of the equation must change. Either the quality or the quantity (as in the amount of content or game length) will have to reduce to reduce costs to a point where a lower price point can happen.
I also find it odd that this is coming from Namco. They have games that were already released outside Japan on the 360, that have been ported to the PS3, but only in Japan. The costs involved with localizing these games are certainly limited compared to developing a new game, so from their point of view, why not localize some of these games and release them? Even if they are released as downloadable titles rather than full retail releases (reduces costs...).
Perhaps that makes too much sense?
godsman
Thursday, May 20, 2010 @ 2:26:31 PM
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I believe $50 games in the PS2 ages were expensive to begin with, but it was not noticeable because of the dominance in the PS2. Developers spend all their time and effort in one platform, lesser graphical appeal, greater amount of audience. If they want to lower game prices, one system has to dominate this cycle again.
This is why I believe Wii singlehanded ruined the generation. The gimmick brought more audience in, but it scattered the audience across the consoles. The hardcore games being on HD consoles, while most of the audience are on the Wii. I know many of my friends that bought a PS2, upgraded to Wii, disappointed but didn't want to go PS3/Xbox, because they didn't want to invest on another platform for new games.
Ben Dutka PSXE [Administrator]
Thursday, May 20, 2010 @ 2:39:06 PM
Highlander
Thursday, May 20, 2010 @ 2:54:53 PM
It might not be a bad thing for game developers and publishers to stop and consider for a moment who their audiences are, how many games they will purchase, and what price sensitivity exists in each demographic/market segment.
chedison
Thursday, May 20, 2010 @ 4:59:39 PM
big6
Thursday, May 20, 2010 @ 2:27:44 PM
Reply
The game company certainly wouldn't offer a Platinum trophy for just finishing the core game.
But then consumers will be complaining, because they had no intention of getting the add-ons.
...hmm... I suppose there's no pleasing everyone!
Condemnedsoul23
Thursday, May 20, 2010 @ 2:31:51 PM
Reply
BikerSaint
Thursday, May 20, 2010 @ 2:52:50 PM
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But it's certainly not a good price when you're getting a lesser game that's either and/or...
way too short,
cut content in order to make more DLC $$$,
porting the 360, & gimping the PS3 copy,
lazy developers still make last gen graphics.
And the list goes on & on!
So these lesser games only deserve to be bought when the price either comes way way down, or buying used, or even waiting till it's tossed in the $5-$10 bargain bin.
NeoHumpty
Thursday, May 20, 2010 @ 3:09:09 PM
WorldEndsWithMe
Thursday, May 20, 2010 @ 4:12:22 PM
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I DO believe if games dropped 10-20 dollars they would probably make more money but I don't see it happening. You have no idea how many people I saw on the boards across the internets saying that that $40 price on 3DDotGameHeroes was what sold them on it.
The idea of a core game then DLC is just stupid, my 500gigs would be full pretty quickly and I wouldn't save any money in the deal. So Namco, take the lead, sell your next game at $50 and see if you make more than projected at $60. I dare ya.
Off Topic: Why is that Google ad floating in space and blocking my view of the comments?
Darwin1967
Thursday, May 20, 2010 @ 4:31:41 PM
mexgeo86
Thursday, May 20, 2010 @ 4:36:38 PM
Deleted User
Thursday, May 20, 2010 @ 4:58:58 PM
Reply
WorldEndsWithMe
Thursday, May 20, 2010 @ 5:14:02 PM
baseballdude_ [Administrator]
Thursday, May 20, 2010 @ 5:33:30 PM
Reply
Highlander
Thursday, May 20, 2010 @ 10:11:33 PM
Alienange
Thursday, May 20, 2010 @ 5:46:14 PM
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There are times where you can literally get 3 or 4 games by doing the "rebate carousel" at Amazon. That's not even counting the serious price drops on games after only a couple months. I see no problem having someone pay $60 for a game to have it on day one.
fluffer nutter
Saturday, May 22, 2010 @ 11:57:01 PM
WorldEndsWithMe
Thursday, May 20, 2010 @ 5:52:27 PM
Reply
MyWorstNightmar
Thursday, May 20, 2010 @ 8:54:56 PM
MyWorstNightmar
Thursday, May 20, 2010 @ 9:20:18 PM
Jawknee
Thursday, May 20, 2010 @ 9:52:01 PM
MyWorstNightmar
Thursday, May 20, 2010 @ 9:57:11 PM
Jawknee
Thursday, May 20, 2010 @ 10:08:29 PM
Nerull
Friday, May 21, 2010 @ 12:22:52 AM
Highlander
Friday, May 21, 2010 @ 3:08:16 AM
The reason is that in the US states and cities can set their own sales tax levels, there is no federal sales tax. If you sell something to a customer in another state, they are not subject to your state's tax law and so the purchase is tax free, unless you have a fulfillment center or other operation in the state that the customer is in.
Jawknee, you pay sales tax on all other purchases, why not online ones? Sure it's nice not to have to, but why so angry? If no one pays their taxes what will the government buy bombs and guns with?
Jawknee
Friday, May 21, 2010 @ 11:41:36 AM
Not only that but taxes kill industry. A VAT would stagnate our growth and well see unemployment rates stay high like Europe. We will also see in increase in the price we pay at the store for all goods and services under a VAT. People assume these companies will eat the cost but they won't. They'll start laying people off or raise their prices. As a business owner i would do what i had to to survive. If my state forces us to pay more taxes on Amazon sales or just internet sales in general, i will be buying less. Whos hurt? me and Amazon.
Taxes at some level are a must, i would argue we are way past that appropriate level at this point. More will just do more damage to our economy.
Last edited by Jawknee on 5/21/2010 11:57:59 AM
Wage SLAVES
Thursday, May 20, 2010 @ 6:31:43 PM
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Scarecrow
Thursday, May 20, 2010 @ 7:44:03 PM
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I bet they've already filled out the 9.5GB of storage on the DVD version of QT
Reminds me of what happened to FFXIII and cutting "a whole game's worth of content."
COULD be wrong, just throwing this out there
The Toaster 60 is really hurting video game's progression
LightShow
Thursday, May 20, 2010 @ 9:04:27 PM
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and its exactly what the dude said. i'm not made of money.
most people round these parts spend the same amount on games as i do, they buy madden and the new COD and thats all their library has. I have a large span of games that i like, so i rent. i can usually polish off a game in 5 days regardless.
Jawknee
Thursday, May 20, 2010 @ 9:52:55 PM
JDC80
Thursday, May 20, 2010 @ 10:33:28 PM
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If I didn't restart my Gamefly account back up I wouldn't be playing anything new right now(GTA IV episodes and RDR) a fair price would be 40 dollars and sports titles that come out annually should be 30 dollars.
Temjin001
Thursday, May 20, 2010 @ 11:07:37 PM
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Apparently, the average development cost going from PSX to PS2 to PS3 multiplies by roughly 5x-7x that of the previous generation. It'd be hard for me to imagine God of War 4 (hypothetically on PS4) costing $200k+ and still manage to be profitable. Though, perhaps, greater processing, moving forward, will equate to increased pixel resolutions and filtering techniques that may not require much more R&D costs to optimize.
And who knows, if it is determined that all it takes to successfully launch a new hardware platform with resolution and detail augmentation, perhaps we may see "optimized on PS4 games" which are PS3 games at their core but contain programming pathways that enable higher quality visual settings. Enabling a smoother migration from one generation to the next.
Anyhow, I can only wonder.
BaseMan
Thursday, May 20, 2010 @ 11:45:03 PM
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Needless to say I will not buy a game at full retail, unless I sell one to help burden the pain of the initial cost. Like many others I will wait till someone wants to sell their copy on Craigslist for 20 to 30 dollars less. I travel for my job and go to other cities around me so it works in my favor. It would be a lot different without that option. Ebay you can score some deals there also. That's where I scored on a pr of Tritton 720's 5.1 gaming headphones for a $100.00 with free shipping, I lost the option of a 1 yr warranty but saved over $40.00, and they are in perfect condition!
God of War 3 I rented and beat, didn't enjoy all the side missions but didn't care to play just the core game, saved 50 bucks. Got Burnout and Uncharted together for 20, saved 20. A family of 6 I will never afford full retail. It pays to wait and shop around, I even did this for the PS2. We as a society are driven to have the latest and greatest the minute it is available, it usually doesn't payoff. The only two ways I see it justified? On-line multiplaying with friends and gaming as a career choice.
These are just personal opinions and don't belittle people who buy games at full retail, I did 4ever and regret that choice still today.
Robochic
Friday, May 21, 2010 @ 1:05:08 AM
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Basically the way I think about when I purchase a game is
1 I preorder and pay installments so when it comes out I'm not paying 1 lump sum
2) I review it and watch it like a hawk during the preorder period incase I change my mind.
3) I don't buy collectors editions I really don't need that useless crap that comes with it
4) I don't buy strategy guides I go online to find it if need too.
basically I am paying the amount that I am due to the experience I am getting so I see why the games are so expensive but you really have to research to make sure that it's worth that amount.
sha4dowknight05
Friday, May 21, 2010 @ 6:12:29 AM
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But now it's around $40 now
Fane1024
Thursday, May 27, 2010 @ 6:33:36 PM
___________
Friday, May 21, 2010 @ 9:26:46 AM
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in the US games cost 60 bucks, i think that is more than fair especially for some of the games were getting now 60 is a steal!
but here in AU were getting fu*king ripped off!!!
since when is 60 USD 120 AUD???????????????????????
have a look in the new AU gameinformer mag they did a comparison table and no country in the world besides SA pays more for games than us.
why are we paying 120 bucks for games these days thats fu*king pathetic!!!
180 more bucks and i can buy myself a new 360!!!!!
game guides are a fu*king rip off too!
i bought the alan wake guide today, and while its a great guide, heaps of good stuff its no where near worth 50 bucks!
fluffer nutter
Sunday, May 23, 2010 @ 12:00:14 AM
___________
Sunday, May 23, 2010 @ 8:06:00 AM
i buy game guides on some games im really interested in because it gives you a indepth look into the storyline and other things.
like assassins creed 2 guide, it explained what all the symbols above desmonds bed at the end of AC2 meant, without the guide you would of not known all of them just a few main ones.
Sheps
Sunday, May 23, 2010 @ 11:09:13 AM
As it stands at the moment, games cost upwards AU$120 which is about US$100. I'm pretty sure that no one in the states would be happy to pay that.
___________
Monday, May 24, 2010 @ 8:02:48 AM
thats our only docking station, so they have to send the games from Melbourne to all the other states, where most countries have several docks so that means much less shipping requirements.
someone needs to get paid to distribute the games from the one dock to all of the countries game stores.
that said, prices are still way too high.
funny thing is if you buy games from HBHIFI all the new releases they have for under 90 bucks, thats why if theres a game i want to keep ill buy it from them, they are always at least 20 bucks if not more cheaper than EB or game.
DeejayDeez
Friday, May 21, 2010 @ 11:17:29 AM
Reply
Last edited by DeejayDeez on 5/21/2010 11:21:53 AM
Crabba
Friday, May 21, 2010 @ 7:35:45 PM
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There's no reason why cheaper games would have to result in less quality, shorter or lower budget games, since if they were cheaper they could (and probably would) sell a lot more copies instead. Especially when there like now are a lot of new AAA games out there, people aren't magically going to spend $500 at once on all the new cool games out there.
Considering that the physical costs of a game is minimal (which is why WalMart can sell an old DVD for $5 and still make a profit) by lowering new game prices to $30 they would basically turn the same profit by selling twice as many copies, which doesn't sound very unlikely. Not to mention that lower prices on games would probably be one of the best ways to drastically reduce the reason for people to buy games used
Fane1024
Thursday, May 27, 2010 @ 6:36:14 PM

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