A slew of relatively new games recently received price cuts at retail, causing some industry watchers to become concerned about potential flagging consumer acceptance of the $59 price tag for front-line PS3 and Xbox 360 games.
But analyst Todd Greenwald with Signal Hill assured in a Monday research note that the $59 price tag for new releases will continue to be the standard this year, despite discounts on certain software.
"If triple-A titles start to go out at $49.99, we will be very concerned, but until then, we think $59.99 is safe for triple-A titles in 2009," he wrote.
Still, he called software pricing "one of the biggest question marks in 2009," calling the demise of the $59 price point for Xbox 360 and PS3 software "the biggest risk facing all publishers." An across-the-board slashing of the current pricing would be "devastating for margins," the analyst stated.
Some games that publishers and retailers recently discounted include Mirror's Edge, Madden, Guitar Hero, Saints Row 2 and Prince of Persia.
Greenwald reminded investors that it's more important to note how much newly-released games are selling for instead of worrying too much about the price of three- to four-month-old games. For now, $59 appears to be holding up, he said. "...Lord of the Rings from EA launched at $59.99 and remains there. Skate 2, also from EA (which is typically the first publisher to cut prices), launched at $59.99 and is off to a good start."
What's worse than the continued price gouging is that publishers continue to withhold content on their overpriced releases so that they can sell them as DLC, sometimes solely as an unlock for something already on the disc you overpaid for!. It's becoming more common to see DLC released within a few weeks of a title's release; some recent titles have seen DLC released at launch, or even before launch.
EA, Namco, Capcom and D3 are some of the worst offenders. EA sells the unlock codes that you used to be able to punch in on your controller. Namco sells overpriced DLC in general. Capcom had overpriced DLC ready for SFIV at launch, as did D3 with Onechanbara.
Unfortunately, there appear to be enough sheep out there to support these practices. DLC prices are escalating and many more publishers are now actively looking to trim content so that they can sell it to you after you've already bought their games.
$59 is often considered too much nowadays, because the "Triple-A" games are often released with Collector's Editions that sell for even higher prices, such as $69.99 or higher.
But people now realize that it's bogus to pay that much, because in a short time you can buy used games at low prices, or even new games at lower prices online.
...And just for the heck of it, I thought I would mention something very important that would help the economy of the United States:
Has anyone ever noticed that high-school teachers only actually "work" about 180 days of the year! School "Districts" pay teachers to "work," yet they do not have to "work" during the summer, even though there is a NEED for "summer school." As a result, we are TAXED even higher prices, because the school Districts hire NEW "summer-school" teachers, instead of telling the existing teachers to simply DO THIER JOB by "teaching" during the summer.
I was reading an article about this that talked about a school district in Michigan called the "East China" School District where Elementary, Middle-School, and High-School teachers make over $50,000 a year to start out of college with a Bachelors degree, and then INSTANTLY have a salary increase to over $60,000 when they get a Masters degree...Even though most of the teachers are going to graduate-college during the summer, rather than teaching summer school.
Note: If there are any people out there who deal with Racism, that East China school district in Michigan has virtually ZERO employees who are African American. I think that is terrible because of the racism that exists there. Experienced people of multiple races apply for the high-paying jobs in the East China school district, yet the school district turns their back on those experienced employees so that they can hire recent college graduates with no experience, just because those recent graduates went to school in the East China school district. The employees simply don't want to give those high-paying wages to people who are African American or other minorities. Our country is supposed to be past that point, but it seems that there are still some places where that has not happened.
Teaching is a lot harder and more dangerous work than paid blogging Mike. Bit off topic with your libellous rant as well. Define "virtually zero"?
I'd have bought at least *a* console game for Christmas '08 if they didn't cost so much. I know they will all be affordable later and in the end, I opted to buy The Witcher on Steam since it was a bargain.
Bottom line: the $60 price point hinders sales.
Brian Woods
www.brianwoods.com
I never pay more than £25 for my games, no matter the title. Games just aren't worth their £40/50 rrp.
If new PS3/360 games were £20 on release then maybe consumers would take a chance on games they'd never consider buying, thus sales of games like Valkyrie Chronicles, etc would benefit and publishers would take "more of a risk" putting out new IP.
As long as games remain expensive then they'll never reach the heights of other mediums i.e. books, movies, music because the price tag of games scare potential consumers away.
With games like Resident Evil 5, Killzone 2, Street Fighter IV on the way and priced over my £25 limit (i won't budge on this), i'll have no choice but to wait or purchase the game second hand.
Developers/Publishers maybe pissed at the second hand market, but they only have themselves to blame because if games weren't too expensive in the first place, then the second hand market wouldn't be as big as it is.
I've got no respect what-so-ever for publishers and their pricing policies as the second hand market benefits me and others.
Especially at times like these due to the credit crunch.