Good news consumers, if analysts are correct, we may be seeing cheaper video games fairly soon. Analysts are all coming out now to forecast the potential drop in price for the software part of the video game industry. You may think this will be due to the poor economy; however it seems there is more to it than just that. According to analyst Jesse Divnich the decrease in price may be due to decreasing development costs, familiarity of current hardware, and a very competitive market. He goes on to talk about the problem developers’ face when competiting against major “AAA” titles, such as Halo, which will always occupy shelf space. Furthermore, he mentions that the average price of games seems to be dropping already; making games that are $60 stand out for consumers, and not in a good way.
Only time can tell if this analyst is correct. He seems to have done his homework though, and his reasons for the price cut definitely seem feasible for developers. The only problem I see with this is if the price is lowered, then developers will make less money from the game sales. This is a potentially major problem seeing as this is the main source of income the companies get. The increasing 3rd party sales that Gamestop participates in don’t see any money going back to those developers. No matter which way you look at it, the developers are definitely in a catch 22.
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February 4, 2009
#1
I really hope this is true. Sixty dollars is a huge investment these days.