Re:Activision leak details entire Warzone 2 and Modern Warfa...
by ethbr0 on Tuesday February 21, 2023 @03:49PM
(#34887031)
> raising game prices is pure fleecing
My curiosity is that there's some normalized change in game pricing, but it's really dependent on both inflation and increased size of gaming market.
Since unit costs are so low for digital goods, if you have +5% inflation over a period and +15% gamers, the price of AAA games technically should have gone down to maintain profits. (Assuming you hold development costs static, which isn't true but simplifies the problem)
I'm not sure what that inflation-TAM number would be. Maybe games are getting "more profitable" (at the same price point), maybe less.
My curiosity is that there's some normalized change in game pricing, but it's really dependent on both inflation and increased size of gaming market.
Since unit costs are so low for digital goods, if you have +5% inflation over a period and +15% gamers, the price of AAA games technically should have gone down to maintain profits. (Assuming you hold development costs static, which isn't true but simplifies the problem)
I'm not sure what that inflation-TAM number would be. Maybe games are getting "more profitable" (at the same price point), maybe less.