Here is an interesting take on the controversy surrounding the price hike of Modern Warfare 2 in Europe (the game will now sell in that region for roughly $90 YIKES!).
Industry analyst Chris Deering suggests that blockbuster game titles will have to be priced around $116 to maintain profitability.
Are people willing to spend that kind of money on games in this yo-yo economy? Are the spit-polished HD graphics and Hollywood quality soundtrack really worth two weeks of groceries (and that's bachelor's groceries, mind you). My guess is no.
So what is the answer to the game industry's woes then? Mind you, I'm no expert, but here are a couple of obvious suggestions...
SUBSCRIPTIONS! SUBSCRIPTIONS!
Activision has two of the worlds most popular online video games on market (World of Warcraft and Call of Duty). One of these titles is subscription based, one is not. How much longer do you think you'll be fraggin' for free every month on COD? Much like WOW, Call of Duty has become a gaming platform unto itself. It's only a matter of time before they start charging $15 a month to play.
CHEAPER BUDGETS/CHEAPER GAMES BOTH IN-STORE AND ONLINE
With the advent of digitally distributed games via popular online services like Steam (PC), XBOX LIVE Arcade, WiiWare, and the Playstation Network, it is now proven that a company can make nice profit off of smaller, low budget games that range in price from $5-$20. This could very well be the blueprint for the future of industry, only for one thing: This business model only penetrates the part of the market that is connected to high speed internet.
Why not take some of these fantastic budget priced downloadable games like Battlefield 1943, Geometry Wars 2, or Braid, slap them in jewel-cases with nice color booklets and sell them at retail for a couple bucks more than their digitally distributed counterparts? I bet that the fanboys would even double dip in some cases.
It's hard to say what the gaming landscape will look like in the next 5 years but I'm guessing the most popular titles will be either significantly more expensive or cheaper than what we're playing now.
Remember when Nintendo 64 games were $70? Don't even get me started on the price of Neo Geo games. *SHUTTER*
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