One region that shows the validity of these claims is in the home of true gaming, Japan. In the highly competitive Japanese market, some very popular games could cost up to 15 or 20 dollars more than in the US, but they still sell very well because of the trendy nature. One of the more recent examples is Resident Evil 5, or Biohazard 5 (the franchise name in Japan), which was sold at a price comparable to 75 US dollars. Did this high price cause the game to fail, hell no, and Capcom generating a ton of more profit on top of the normally small margins on a 60 dollar game. Could this have been a retailer mark up, I do not know because we do not have access to the wholesale prices or cost. Soon, as network infrastructure grows in speed and abundance, we will see a similar rise in the cost of downloadable titles, especially on next gen consoles.

Do not get me wrong; Xbox Live and the Playstation Network have revolutionized gaming in the online space, opening up multiplayer and downloadable content for our consumption. But, the trend of charging for their services and increase in overall cost of the games is a very troubling . These rising costs are not just hurting gamers, but developers, who see a drop off of downloads due to the current economic situation, therefore, a lower profit margin. Seeing these tendencies will also deter major publishers/license holders from taking the leap into the DLC market, keeping the overall value of a game lower. In turn, we could see more trading of games and piracy because as consumers, we need to get the “bang for our buck.” Although, the enthusiast press and hardcore gamers resent these practices, the “main stream” gamer is always ready to trade in their games not knowing the consequences of their actions against the developers and publishers who create these games.

The antithesis of this higher price of gaming is the iPhone. Utilizing the App Store, gamers and developers have been able to strike a balance on prices. With all games costing under ten bucks and the majority under 3 dollars, who can blame small developers for moving to an Apple platform because of ease of use and 20 plus million install base. Even some Apps are free, which is the mecca of toilet gaming. I believe that this is the future of mobile gaming and Nintendo/Sony will have to recognize the quality of such a platform. As for future iPhone iterations and releases, no one will know how many of these devices will be in the hands of gamers within the next five years.

The price of gaming is growing and decreasing as the popularity of several platforms grows. We shall see how the digital distribution market adapts to the need for lower cost games. Without the necessity of stamping media and packaging, what will games publishers do? Increase their own capital to spend on more ambitious games or line their pockets at the expense of the consumer. No one really knows and no analyst can give us the answer, but until that time we can only speculate. Given the current economic climate, it isn’t preposterous that an all-digital platform will be on its way, but the power of the retailers will dictate the truth. As long as the majority of games are sold through retailers we will continue to see physical media. It is my hope that this trend will cease to exist and we can go to an all digital distribution system for all games.

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