Game Prices Whinge!

[MrLuke]

Agreed, it's not 6 months work for a couple of geezers.
It's hundreds of people taking years.

er....mebe some games are in development for years but look how quick they chuck out console games now let alone the fact that many are still using the same engine as the last release

[JohnnyC]

Agreed, it's not 6 months work for a couple of geezers.
It's hundreds of people taking years.

er....mebe some games are in development for years but look how quick they chuck out console games now let alone the fact that many are still using the same engine as the last release

Agreed, but I was meaning MW2 specifically as that's the game that's 'apparently' going to cost more than the previous one.

[matt_mr2t]

And how much will they make?

£45 each, multiple millions of sales on each console?
Whats the average units sold for games like this? 5-10m worldwide?

[Ekona]

Then minus the cost of employing the best coders, gfx artists, sound engineers etc in the world, all the QA people, all the management, building costs, electricity + water bills, advertising, manufacturing, distribution... There's a few million quid right there.


Some games are worth it, some aren't. MW2 is worth whatever they want to charge IMHO.

[matt_mr2t]

Then minus the cost of employing the best coders, gfx artists, sound engineers etc in the world, all the QA people, all the management, building costs, electricity + water bills, advertising, manufacturing, distribution... There's a few million quid right there.


Some games are worth it, some aren't. MW2 is worth whatever they want to charge IMHO.

So if they charged £1,000 would you say it was worth it?
Everything, not just games has a limit to how much it's worth.

[matt_mr2t]

BTW, is this what people are talking about?

http://www.play.com/Games/Xbox360/4-/11 ... oduct.html

As the actual game price is currently listed as £44.99 and I imagine will go down to £39.99 after it's initial release.

[JohnnyC]

BTW, is this what people are talking about?

http://www.play.com/Games/Xbox360/4-/11 ... oduct.html

As the actual game price is currently listed as £44.99 and I imagine will go down to £39.99 after it's initial release.

No, this...
http://www.play.com/Games/Xbox360/4-/87 ... oduct.html

Although it's £44.99, the RRP is £54.99.

And even though COD4 (MW1) was released 2 years ago - it's still never been available as a £20 'platinum' game - why? it's still selling at full price

[matt_mr2t]

Play ALWAYS put really high RRRP's on their website, I've yet to see anything that costs as much as they quote though.

Some examples.

Knowing DVD (not bluray) £22.99 RRRP (Bluray £29.99)
Watchmen DVD £19.99 (Bluray £29.99)
Ghostbusters PS3 £49.99
GH Metallica £49.99

I just ignore it as you will never find anything being sold any where at the RRRP's they quote on there.

[MrLuke]

Then minus the cost of employing the best coders, gfx artists, sound engineers etc in the world, all the QA people, all the management, building costs, electricity + water bills, advertising, manufacturing, distribution... There's a few million quid right there.


Some games are worth it, some aren't. MW2 is worth whatever they want to charge IMHO.

Say there's 5 million there. That means they have to sell 5 million copies at £1 each. Cod 4 has now sold over 13 million copies. So if they sold them at £1 each theyve still made over twice their costs.

At £45 per unit, the first 150,000 copies will pay for the cost of development and everything past that is profit. Even if their costs are 20 or 30 million theyre still laughing all the way to the bank.

[matt_mr2t]

Then minus the cost of employing the best coders, gfx artists, sound engineers etc in the world, all the QA people, all the management, building costs, electricity + water bills, advertising, manufacturing, distribution... There's a few million quid right there.


Some games are worth it, some aren't. MW2 is worth whatever they want to charge IMHO.

Say there's 5 million there. That means they have to sell 5 million copies at £1 each. Cod 4 has now sold over 13 million copies. So if they sold them at £1 each theyve still made over twice their costs.

At £45 per unit, the first 150,000 copies will pay for the cost of development and everything past that is profit. Even if their costs are 20 or 30 million theyre still laughing all the way to the bank.

Exactamundo. The price of games is vastly inflated Vs the costs the makers incur.

[toxo]

Then minus the cost of employing the best coders, gfx artists, sound engineers etc in the world, all the QA people, all the management, building costs, electricity + water bills, advertising, manufacturing, distribution... There's a few million quid right there.


Some games are worth it, some aren't. MW2 is worth whatever they want to charge IMHO.

Say there's 5 million there. That means they have to sell 5 million copies at £1 each. Cod 4 has now sold over 13 million copies. So if they sold them at £1 each theyve still made over twice their costs.

At £45 per unit, the first 150,000 copies will pay for the cost of development and everything past that is profit. Even if their costs are 20 or 30 million theyre still laughing all the way to the bank.

Exactamundo. The price of games is vastly inflated Vs the costs the makers incur.

But don't forget (as mentioned above) the makers don't see 100% of the sale price. I'd be surprised if they see 40% once they've paid the publishers, and certainly at one stage there was a licensing surcharge to be paid to each console manufacturer as well. So, if their incurred costs are £5m (and likely to be vastly more) and they see 40% of the sale cost lets assume, that's ~275,000 units they have to shift to break even. Then lets remember that MW doesn't just have to fund itself, that profit will go back into the company to help fund other games, write off debts incurred by not-so-successful titles, buy the new R&D kit for the next generation of consoles (which the manufacturers make more expensive with each release), etc. etc.

Think about it from a business point of view.

[matt_mr2t]

I am - it's a bloody good business to be in lol.

[JohnnyC]

Say there's 5 million there. That means they have to sell 5 million copies at £1 each. Cod 4 has now sold over 13 million copies. So if they sold them at £1 each theyve still made over twice their costs.

At £45 per unit, the first 150,000 copies will pay for the cost of development and everything past that is profit. Even if their costs are 20 or 30 million theyre still laughing all the way to the bank.

Just because COD4 sold exceedingly well, 99% of games realeased don't.
Yes, Activision are bang out of order for bumping up the price for a game they know will sell.

Exactamundo. The price of games is vastly inflated Vs the costs the makers incur.

Just because a handful of games make a mint, doesn't mean they all do.

But don't forget (as mentioned above) the makers don't see 100% of the sale price. I'd be surprised if they see 40% once they've paid the publishers

Actually, the retailers still take a huge percentage. So it's likely the publishers will get 40%.
The makers don't pay the publishers, it's the other way around. Typically the publisher covers development costs on a monthly basis (+ a little profit for the maker hopefully), then if the publisher recoup the development costs they paid out then they may pay a *small* percentage in royalties to the maker.

I am - it's a bloody good business to be in lol.

Not really, there are so many companies go bust, all the time.

[matt_mr2t]

They go bust because they make crap games, charge a lot of money, that no one will pay and wonder why. A restaraunt wouldn't survive long if they were charging premium money for microwave meals....

Activision, with Call Of Duty & Guitar Hero are laughing. They must have made an abolute killing with that franchise. The next one(s) could be terrible but they'd still make a killing as people like Ekona are saying "it'll be good, I would pay whatever for it"


You dont know that until after you've parted with your cash...

[DannyN]

You dont know that until after you've parted with your cash...

I'd put good money down that its not $h1t

[H3RB]

You dont know that until after you've parted with your cash...

I'd put good money down that its not $h1t

alot of people said that about world at war and gad damnnnnnn that game was appauling compared to modern warfare!

[Ekona]

Actually, it was surprising how good it was considering it wasn't an IW CoD.


Look, if you don't like the price, then don't buy it. Simple as that. It'll make no difference at all as there's millions of others who will buy it and love it like a brother, and who realise that MW2 at £55 is still better value than the latest Transformers game at £30.

[SamUK]

Agreed, it's not 6 months work for a couple of geezers.
It's hundreds of people taking years.

er....mebe some games are in development for years but look how quick they chuck out console games now let alone the fact that many are still using the same engine as the last release

Agreed, but I was meaning MW2 specifically as that's the game that's 'apparently' going to cost more than the previous one.

I wonder how they worked that out?

Considering all the engine is built and ready, this game doesnt look hugely different from the first.

Wonder where they spent the cash.

[JohnnyC]

They go bust because they make crap games, charge a lot of money, that no one will pay and wonder why.

Well the makers of the Timesplitters series went bust. Loved those games

[JohnnyC]

er....mebe some games are in development for years but look how quick they chuck out console games now let alone the fact that many are still using the same engine as the last release

Agreed, but I was meaning MW2 specifically as that's the game that's 'apparently' going to cost more than the previous one.

I wonder how they worked that out?

Considering all the engine is built and ready, this game doesnt look hugely different from the first.

Wonder where they spent the cash.

Sorry, I should've worded that better.

I meant that the retail cost (for you & I) of MW2 will be more than the previous one.