LogFAQs > #977219786

Think about an article like this. Why does a huge publisher whine and discuss what they THINK games should be priced at?
Why don't they just....price their games at what they think it should be?
Take a moment, consider it.

https://exputer.com/news/industry/gta-6-publisher-games-priced-per-hour/

GTA 6 Publisher Believes Games Should Be Priced Per Hour

"That doesnt necessarily mean that the industry has pricing power."

During the earnings call for Take-Two Interactives Q2 2024 period, CEO Strauss Zelnick expressed his stance on how video games should be priced on a per-hour basis. The GTA 6 publishers CEO elaborated on the statement by going over how the algorithm is designed when talking about entertainment properties and the customers perceived value of the product.

"In terms of pricing for any entertainment property, basically the algorithm is the value of the expected entertainment usage, which is to say that the per-hour value times the number of expected hours plus the terminal value thats perceived by the customer in ownership if the title is actually owned, not, say, rented or subscribed to. And youll see that that bears out in every kind of entertainment vehicle. By that standard, our frontline prices are still very, very low because we offer many hours of engagement.

Moving on, Zelnick talked about how the industry provides a fantastic price-to-value opportunity for consumers overall. They went on to say, That doesnt necessarily mean that the industry has pricing power or wants to have pricing power. However, there is a great deal of value offered.

They know they can't just price games however they want and....have people still buy them.

So publishers go on HUGE tirades to CONVINCE gamers to buy into the idea that...games SHOULD cost more.

Because NOTHING is stopping them from pricing games higher other than gamers saying "I will pay that much"

So far many gamers (intelligently in my opinion) have said I won't pay more. We see this with how SUPER fast games drop in price nowadays. This is a response to TONS of copies sitting on shelves not moving because...the PRICE is too high for people and the BUYING IS THEIR OWN PERSONAL DECISION AND FREEDOM!

So what happens then is the industry realizes it doesn't have the pricing power. The product isn't essential where they can just manipulate it without blowback. It isn't something even super in demand. The product more of a "if you want it, when you want it, as you want it on your own time". Not even FOMO associated like with "limited edition" things.

So they have to spend long hard hours to CONVINCE

CONVINCE

to make you DECIDE TO BUY into and argument that games should cost more.

Do you buy it?