Why are console games $70?

In recent years, the price of AAA console games has increased to $70 from the standard $60. This price hike, which started with some major titles in 2020, has been the subject of significant discussion. Several factors contribute to the rising cost of video games. Here are some of the main reasons why console games are now priced at $70:

1. Increased Development Costs

• Game development has become more expensive over the years due to the increased complexity of modern games. The development of AAA titles now requires more resources, including advanced graphics, larger game worlds, more complex AI, and detailed storylines.
• Large teams of developers, designers, voice actors, motion-capture artists, and sound designers are involved in creating these expansive games, leading to a rise in production costs. For example, some open-world games or action-adventure titles now take years to develop, requiring millions of dollars.
• The rise of next-gen consoles like the PlayStation 5 and Xbox Series X/S also means that game developers need to create content that pushes the limits of new hardware, which adds to costs.

2. Inflation

• Inflation plays a role in the rising cost of video games. Historically, the price of games in the 1990s and early 2000s was around $50–$60, but inflation over time has led to the natural increase in prices. In comparison, a $60 game in the 1990s is equivalent to about $100 today when adjusted for inflation.
• As a result, the increase to $70 can be seen as an attempt to keep up with inflation while maintaining profitability for game publishers.

3. Longer and Larger Games

• Modern games are larger in scale and scope. Many titles now feature vast open worlds, extensive storylines, multiplayer modes, and downloadable content (DLC) that can add hundreds of hours of gameplay. This requires more development time and larger teams to create these expansive experiences.
• Games like Red Dead Redemption 2, The Witcher 3, or Cyberpunk 2077 require millions of dollars in assets, voice acting, and motion capture, making them more costly to develop.
• Many games now include season passes, expansions, and live-service models, which can be priced separately, further raising the overall cost of the game.

4. Marketing and Distribution

• Marketing is a huge part of the cost of modern video games. Major releases are often accompanied by large-scale advertising campaigns, including TV commercials, social media campaigns, and other forms of digital marketing. All of this costs money, and the expenses associated with these campaigns are often passed on to the consumer.
• Additionally, the cost of distribution has also increased. The transition to digital downloads and the presence of multiple online stores (PlayStation Store, Xbox Marketplace, Steam) means game developers and publishers often need to work with third-party distributors, which can lead to higher costs.

5. Next-Gen Hardware

• With the PlayStation 5 and Xbox Series X offering cutting-edge graphics, ray tracing, and faster load times, games are now built to take full advantage of these new technologies. The next-gen experience comes with a price tag, and publishers are likely pricing games higher to justify the investment in creating high-fidelity experiences that look and run best on these systems.
• Features like 4K resolution, 120Hz frame rates, and ultra-fast SSDs require games to be optimized for the hardware, which in turn increases the development costs.

6. Cost of Licensing and Exclusivity Deals

• Some publishers have signed exclusive licensing agreements with platform holders like Sony, Microsoft, or Nintendo. These deals allow the game to be exclusive to a specific console or platform, and often, the cost of these agreements is passed on to the consumer.
• Exclusive content and limited-edition bundles can also make games more expensive.

Popular Games Priced at $70

Several AAA titles released in recent years have adopted the $70 price point for their next-gen versions. Here are some examples:

1. The Last of Us Part II (2020) – $70

• Release: June 19, 2020
• Developer: Naughty Dog
• Publisher: Sony Interactive Entertainment
• This game, which is a PlayStation 4 and PlayStation 5 exclusive, was one of the first major games to adopt the $70 price point. The game received widespread critical acclaim for its story, gameplay mechanics, and character development.
• The Last of Us Part II Official Website

2. Spider-Man: Miles Morales (2020) – $70

• Release: November 12, 2020
• Developer: Insomniac Games
• Publisher: Sony Interactive Entertainment
• The next-gen version of Spider-Man: Miles Morales was priced at $70 for the PlayStation 5 version, offering enhanced graphics, ray tracing, and faster load times. It was a standout title on the PS5, showcasing the potential of the next-gen hardware.
• Spider-Man: Miles Morales Official Website

3. Demon’s Souls (2020) – $70

• Release: November 12, 2020
• Developer: Bluepoint Games
• Publisher: Sony Interactive Entertainment
• A remake of the original Demon’s Souls from 2009, the PS5 version was one of the flagship titles for the PlayStation 5. With incredible graphics and performance, the game helped demonstrate the power of the new system.
• Demon's Souls Official Website

4. Call of Duty: Black Ops Cold War (2020) – $70

• Release: November 13, 2020
• Developer: Treyarch and Raven Software
• Publisher: Activision
• The Call of Duty franchise, known for its annual releases, was also among the first to implement the $70 price tag for the next-gen version of Black Ops Cold War, which offered enhanced graphics, 120 fps gameplay, and new multiplayer modes.
• Call of Duty: Black Ops Cold War Official Website

5. Resident Evil Village (2021) – $70

• Release: May 7, 2021
• Developer: Capcom
• Publisher: Capcom
• This survival horror game is the eighth installment in the Resident Evil series, featuring stunning visuals, great gameplay mechanics, and a gripping narrative. It was one of the first games to use the RE Engine to bring next-gen features to the series.
• Resident Evil Village Official Website

Conclusion: Is $70 the New Standard?

The rise of $70 games reflects the increasing costs of game development and the push for high-quality gaming experiences on next-gen hardware. While this price increase may feel steep for players, it is largely a response to the growing demands of modern games, which require more time, effort, and resources to create. However, as gaming technology and business models evolve, we may see different pricing strategies in the future.

For gamers, it's important to keep an eye out for sales, discounts, and subscription services (like Xbox Game Pass or PlayStation Plus) to get the most out of their gaming budgets.