Capcom President Haruhiro Tsujimoto believes video game pricing should rise. Learn more about his reasons, game industry analysis, and projections for the future of gaming.
Video Game Prices May Increase Due to Rising Development Costs
An Argument for Increasing Costs
The video game industry has grown extraordinarily rapidly, with technological improvements and immersive experiences enthralling audiences worldwide. This success, however, has not been without its drawbacks. Capcom president Haruhiro Tsujimoto has raised an argument claiming that video game prices are now too low, especially when considering the significant increases in development costs.
Increased Investments and Stagnant Profits
Based on a Nikkei report from September 23, President Tsujimoto spoke on many themes at the Tokyo Game Show. In one specific portion, he explained that he thought video game pricing was "too low." Tsujimoto's reasoning is based on the growing disparity between the skyrocketing costs of game creation and the comparatively stagnant costs of video games. As technology develops, producing top-notch, cutting-edge games has become more expensive. Large-scale production budgets now frequently rival those of blockbuster films. Despite this, the average price of a new video game has more or less stayed practically constant for years.
In a report by Gamesindustry.biz, video game analyst Sam Naji examines the shifting pricing of video games and concludes that, when adjusted for inflation, video games are considerably cheaper than previous generations. This is attributable to various causes, including technology advancements, sales economies, and production efficiencies. However, because publishers are hesitant to boost pricing, video game prices have remained steady in recent years.
A Healthy Option for the Industry?
Tsujimoto supports price increases for video games because he sees them as a "healthy option" for the industry. He believes this change is necessary to ensure the sector's long-term viability and growth. Developers would have the resources to produce even more ambitious and avant-garde games if prices were adjusted to reflect rising production costs.
Tsujimoto goes on to say that costs for video games shouldn't be influenced by economic downturns or periods of poor company confidence. He cites previous examples, noting that people continued to invest in and play video games even during the 2008 Lehman Brothers stock crash. Tsujimoto asserts that the gaming sector has exceptional resilience and is mainly immune to broader economic trends.
Predictions for the Future
Tsujimoto's judgment is widely shared by experts in the field, who predict that video game prices will rise. Pricing must be realigned to maintain profitability and support industry growth as production expenses for video games continue to increase.
Even though sustaining the industry's future development may be necessary, some gamers worry about the possible repercussions of raising video game pricing. They fear that growing prices can only compound on the issues of predatory microtransactions and other game monetization methods. The success and expansion of the video game industry will depend on finding a balance between affordability for players and viability for producers.
Sources:
Nikkei Report on Capcom President's Thoughts about Video Game Prices
Are Video Games More Expensive?
