Gaming is an expensive hobby. If you want the latest console, not only do you need to shell out hundreds of dollars for the machine, but the games don't come cheap either.
That's especially true with the current PS5 and Xbox Series generation, where some games cost as much as $70 at launch.
We're going to explore why console games are so expensive and whether it's justified.
1. People Are Willing to Pay the Price
Something is only worth what people are willing to pay for it. Considering the PS5 sold 4.5 million units in 2020 (made more impressive by the fact it only launched in November of that year), and stock shortage continued into 2021, there's no lack of demand for the latest consoles.
As stated in this GamesIndustry.biz report, when people could purchase the PS5, boxed sales for games like Spider-Man: Miles Morales and Demon's Souls rose substantially.
Of course, the real test will be when publishers release more $70 games and seeing whether they continue to sell as well as these launch titles.
2. Games Offer Hours of Fun
According to HowLongToBeat, a site that shows you how long it takes to beat any video game, Assassin's Creed Valhalla takes 130 hours to complete, while Cyberpunk 2077 takes 98 hours.
Neither of these titles retailed at $70 (they're actually $60), but let's pretend they did. It would mean that you pay around $0.54 per hour of entertainment in Assassin's Creed and around $0.71 per hour for Cyberpunk.
When you break it down like that, it seems extremely reasonable, especially when compared to the cost of other media like cinema.
It's a point that PlayStation CEO Jim Ryan raised in an interview with The Telegraph, in response to a question about the spiraling cost of games:
If you measure the hours of entertainment provided by a video game, such as Demon’s Souls compared to any other form of entertainment, I think that’s a very straightforward comparison to draw.
Of course, a long game isn't necessarily an excellent game. Ultimately, once you finish a game, ask yourself if it was worth the price you paid. If yes, perhaps games are carrying reasonable price tags after all.
3. Production Costs Are Rising
For more than a decade, games have cost $60. However, if you compare a triple-A game from ten years ago to a game released today, you'll notice a stark difference in production.
Many modern games are in production for a very long time, with huge costs dedicated to writing, design, programming, and acting. Though exact development costs aren't revealed, VentureBeat estimates Rockstar spent around $170 to $240 million creating Red Dead Redemption 2. That doesn't even include marketing costs.
There's a theory that development costs have doubled with each new console generation. As reported by VGC, former PlayStation executive Shawn Layden commented on this at the Gamelab Live conference in June 2020, comparing 2013's The Last of Us with its 2020 sequel that took double the time to develop:
The problem with that model is it’s just not sustainable. I don’t think that, in the next generation, you can take those numbers and multiply them by two and think that you can grow. It’s been $59.99 since I started in this business, but the cost of games have gone up ten times.
If we want to see quality games like The Last of Us 2, that impress us with incredibly detailed worlds and deep stories, it makes sense that the cost is going to get passed to the consumer.
Is It Fair That Games Cost More?
When you get a full experience from a $70 game, it's perhaps worth it. However, some games like to make you part with your money even while playing them. Consider NBA 2K21, which retails at $70 but is full of optional micro-transactions.
It's the curse of many modern games, which are obsessed with monetization and manipulation in order to trick you into spending more than you might want to. For games like those, the $70 price tag seems like a kick in the teeth.
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