Posted Jan 09, 2007 at 07:35PM by Chris L. Listed in: PlayStation 3, Xbox 360 Tags: FIFA, Electronic Arts, Deutsche Bank
Ó

I smell a bum rap, though.


Or so thinks analyst Jeetil Patel of Deutsche Bank (hey, there's a change - it ain't our old Wedbush Morgan standby). In other words, he thinks we may be looking forward to a price cut in video games. He points to Electronic Arts cutting the price of Madden, FIFA, and Tiger Woods to US$ 50.00 as a possible sign. "Either the industry is still in transition, or the $ 60 pricing is not sustainable."

Okay, whatever anyone's opinion of EA is, given the... news of last year, it's inarguable that they are (for better or worse) the dominant player in the industry. So the choice to cut the price of a next-gen game when the industry says that the $ 60.00 MSRP is needed to recoup dev costs might be... jarring for an economist. Take it away, Jeetil:

We believe the inability to sustain $ 60 into April suggests consumer appetite for premium priced titles is questionable. Note the reported reductions include Xbox 360 SKUs of the bellwether Madden game, as well as Tiger Woods & FIFA, the latter two being released this past quarter (all three cut from $ 60 to $ 50). Recall that EA also cut Xbox 360 prices in May-06 despite selling into price insensitive early adopters.


Translation: heck no, we (well, enough of us) won't pony up the dough, Patel thinks so, as he tells GameDaily BIZ. Okay, this doesn't mean to say that the industry will really accept fifty as the new sixty - but in the challenge to boost sales of video games, particularly for the recently-launched PS3, price-cutting supply-side theory might sound tempting.


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13 Comments


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   by Kutibah (Unregistered) - 2007-01-09
 » well

to be honest, I don't mind paying $60 for games that DESERVE it such as MGS4, Resistance, Burnout 5, Motorstorm, etc... However, there is NO WAY on earth I would pay $60 for a game such as NFS Carbon. A game truly has to be innovative and designed for next gen to deserve that much money.


   Re: RommelTJ - 2007-01-09
 » It's all about preference.

What you think is good, other think is crap. Example: MTV programming. Some people love it, others hate it. Meanwhile, videogame companies are going to charge a standard price.

I do mind if games are 60 or 50 dollars. Ten dollars is more than an hour of work. I do not know how you get your money, but I have to work, and the last time I checked, minimum wage in the state of California was $6.75.

Also I own a PS3, but I still haven't bought a single game for it. Why? Because they are 60 FREAKIN DOLLARS and they play the same as ps2 games. They might not look the same, but that's another story....

When games were 50 dollars or less I could afford to buy crappy games. When they were 20 bucks I would buy "bad games" just for the laughs, or to prove reviews from a magazine wrong. Now, at 60 dollars a pop, I have to really think if a game is worth it.
   by Kristian (Unregistered) - 2007-01-09
 » I won't pay you

Nah nah why don't you get a job. I won't give you no money, I always pay. Nah nah why don't you get a job.

Full price is for suckers. Too bad there is one born every day.

   by fab (Unregistered) - 2007-01-10
 » And Europe ...

Just to remind to all US customers, we pay in France the game at 60€ for PS2, Wii..., i.e. nearly 75$.

The first Xbox 360 games were priced at 70€ (87$), PSP games are 50€ (62$).

I think that you can be happy with the price of the games in the US...

   by garlic hater (Unregistered) - 2007-01-10
 » nobody likes ze frenchyou

you pay more because nobody likes the french,you all smell of garlic and have hairy women


   Re: asda (Unregistered) - 2007-01-10
 » asda

Im sure there are many nice americans, but it because of people like you that currently the world hates america. You inbread, come to a country with some real history! 200 years pfft
   by Annony - 2007-01-10
 » Pssh...

It's easier to just get the $20 'Greatest Hits' games. Quality games (tested and true) at a great price. Sure, you won't be the first kid with the hot new release, but who really cares?

   by 123 (Unregistered) - 2007-01-10
 » have a *****ing cry

wii & ps3 games in australia are 99.95 and 119.95 respectively, so you think your having a *****ing hard time!

   by Advertising -
   by garlic hater (Unregistered) - 2007-01-10
 » asda price id1ot

hey asda i aint a fat yank im a british citizen and no one likes the french!!!

   by TRA (Unregistered) - 2007-01-10
 » price

don't the british pay even more..?

   by USpeed (Unregistered) - 2007-01-10
 » And for us, european ?

And what about the price in UK, France, and so on ?
60 to 70 euros (up to 93 US Dollars !!!)
Quite expansive ! :'(

   by gtauk - 2007-01-10
 » yeah us europeans

yeah how come we in europe have to pay ***** loads more then you in america? and why the hell is $60 for a game "unsustainable" when we pay £40($80 about) for a next gen game here in the uk its bloody ridiculous why isn't that "unsustainable" it pisses me off, people complaining about the price of games that are so much cheaper to us in europe. the uk is a ripoff the bloody goverment just want our money for tony blair to go to florida and buy ps3's!

   by alk_3 (Unregistered) - 2007-01-10
 » yep

Totally agreed with the first post. Original games developed for a next gen system (usually system exclusives) developed over years that cost alot to produce, the price is very reasonable. Multi platform games just converted to other next gen consoles, with old gen graphics and unoriginal gameplay... why is it they are priced the same? Prices should be varied a bit better.



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