Former SCEE head says blockbuster games need higher price tag but people don't have that kind of money

Posted Aug 1, 2009 at 2:14PM by Karl B. Listed in: News Tags: Activision, Chris Deering, Edinburgh, MCV, SCEE, UK
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Get ready to spend more money - Image 1


Activision's decision to raise the suggested retail price of Modern Warfare 2 (Xbox 360, PS3, and PC) in the UK to UK£ 54.99 (almost US$ 90) has raised a furor among gamers in the region. Former SCEE president Chris Deering recognizes that a conundrum exists: prices for blockbuster titles should be even higher in order to support the industry, but people "just don't have that kind of money."


Deering, who is the current chairman of the Edinburgh Interactive Festival, says that if publishers want their games to support the games industry as much as it did ten years ago, they would have to raise the prices of their blockbuster releases to a whopping UK£ 70 (around US$ 115).


Here's what he told MCV earlier this week:


Before there can be as many successful blockbuster games as there were in the past, games have to be produced in a more efficient fashion.


In order to price these games at a level where they would support an industry [as strongly as] they did ten years ago, they’d have to be sold at £70. But people just don’t have that kind of money, there’s a psychological glass ceiling.


Consumers wonÂ’t spend more, but to write the game, publishers are having to spend more than ever before. ThatÂ’s the key problem.




Related articles:



Via MCV

 
 
 

Comments [refresh]

by jimftr - 2009-08-01 09:46
» What!

£54.99! Thats a rip off! Unacceptable! Who in their right mind would pay £55 for a video game.

by GodGates - 2009-08-01 09:57
» .

Ultra super duper mega die-hard harcore fans.

by BiggBoss - 2009-08-01 09:59
» Rip Off For Sure

The only reason they are jacking up the price over there in the UK is because MW2 is a popular game, and they know gamers will pay it.



If this ever happens over here in the US, I won't be buying games when they are released. I'll wait for price drops and sales. I was cool with $60 after years of a $50 price tag. But $90 is just going too far.



And you have to remember that these games at $60 now easily jump to $90+ as it is with DLC. The industry better get smarter than this. Activision, shame on you.



Can't you UK guys just import it from the US and save some money? PS3 is region free after all.

by dradyinoz - 2009-08-01 10:04
» I dont really mind but its wrong for a few reasons

Everything goes up, I appreciate that. However 2 things that this game is suffering and one massive contradiction all companies have with their pricing. The first is that this game like all the previous CODs are now all hacked to hell. The net shows how even this new title has been hacked and its not even on the shelves. Why should people pay more for this major software weakness (no one is the answer).



The second is around software piracy, bottom line consoles in the main can't be pirated, well not easily and not to be played online. In theory the console prices should come down because of this as in the past thats why prices are so high. Again this is another software weakness.



In short, consumers (the legit ones) are being penalised based on two things only, software flaws and corporate greed.

by zzk2001 - 2009-08-01 10:21
» what the *****?

WOW is all i can say... I mean I hate putting up 60$ for just a game But 90$ YEA RIGHT. Maybe if they spend less time on graphics and more on game play then they wont need to jack up the price.

As for the piracy thing, Yea just goes to show that Does not matter if you do or don't pirate games, They still Rip you off.

Game developers are just money hungry A'holes.

(a side note)

I don't think a game should cost anymore then 30$

I mean ***** man that's like getting 4'times more money off a game then a Hollywood movie and movies take in over 200+mil (world wide)

and i sure the hell know the game did not cost no more then a few mil to make If that.

by Fenix1186 - 2009-08-01 10:49
» Sigh...

This is the reason why game pirating is so prevalent because of greedy ass companies like this. They deserve every loss they get.

by narutosaiyan - 2009-08-01 10:56
» its all the same

they make people pay more anyway, just in a way that the consumer pays it over time...think about all the map packs, expansions, and unlockables everyone pays for after they buy the game. sometimes they end up paying more. if a game like ff7 came out this generation for $60 i would be very surprised

by GodGates - 2009-08-01 11:04
» @zzk2001

If you were a developer, you wouldn't want to work extremely hard for 3-4 years on a game that you and your team had to make from scratch (as in: designing the characters, places, etc.) and then have it sold for only $30 dollars, would you? Movies use actors, and film in actual places, so they don't have to make them.

by genious 7 - 2009-08-01 11:15
» well done

they are not ripping you off. Movies (even hollywood ones) do not have even need half the effort needed to do a good game. Games are made from millions of lines, all hand coded, and can take months to code, not including bugs, quality testing, etc. (I can tell you this since I program, even simple games take a lot of effort, search for "pong source code" if you dont believe me.) Since games have less buyers, games need a higher price to reach the same money.



Before you can say that whatever game is too expensive try to imagine the effort the people made, and how this repays. Please dont comment bad if you dont know how hard a game is to make.(Before saying anything randomly, try making a simple game (ej space invaders).



Zzk2001:If you ever know the burden it takes to make a game, I will dare you to say 30 dollars is the maximum. Try to make a single 3d graphic (with blender) or a single game(Dev c++) no matter how dumb it is and repeat that it is not worth the 90 dollars.



I know that 90 bucks sounds expensive, and I would say this if I did not know the burden it takes, but I must defend the developers (not corporates) point as I do know the burden since I have tried making a game. And even if they bettered the game play and took graphics, gameplay is made of millions of lines of code which are pretty time expensive to make.

by zzk2001 - 2009-08-01 11:18
» to GodGates

Yes i believe 30$ is More then enough for all the hard work put in the game.

When a big game is made it's not like only 100 to 200 will be be sold, More like 2.5mil or More and at 60$ for 2.5mil sold you do the math.

They are just getting Greedy and that will be their down fall.

by zzk2001 - 2009-08-01 11:36
» @genious 7

Yea i know how hard it is to make a game I have even made a Few myself on the PC in C++

BUT That's what the game engines are for,

NO they do NOT do codes and codes for games anymore that has been a thing of the past for many many years.

The fact is it's 100times easy to make a Game then it was 20 years ago, Hell the PS3's Own game engine it's self builds about 20% if not more of the game it's self.

many many new programs and devices have been made to make building games much more easier, I have taken a few classes myself in development and it was easier for me to make a PS2 game then a C++ type game Hell i say it was easier then a Flash game.

by Neuromancer - 2009-08-01 11:41
» To GodGates

Everyone who works hard should be paid a fair amount for their time and effort. I agree. However you can't just ignore all the dev BS we customers have to deal with simply for that fact. Devs really screw themselves when they act like self-important greedy aholes, because now many of us know better than to deal with their BS.



Bottom line, they deserve a piece of every unit sold. Not blood and my first born child. Also, regardless of "how hard" the work was, if some corp idiot decides to chop off a vital part of the game to save money, and the game doesn't sell because of it, then you have to take your lumps.

by andre_euro - 2009-08-01 11:44
» lol

and they wonder why people pirate :P, at those prices, who wudn't do wat they can to avoid paying -.-!

by Navani - 2009-08-01 11:46
» lol

His little statement inspired me to go buy more DVDs for my 360 and to update the firmware

by m3rox - 2009-08-01 11:50
» .

I don't get what all the fuss is about. We've been paying $50+ for video games here in the US for years. Hell, back in the days of the NES, you'd pay even more. Some PS1 games when they were released were upwards of $70 or more.



What people don't understand is that this is the norm, and has been the norm since at least the 80's.



Also, the article is talking about Pounds (i.e. what the British earn, instead of dollars). 54 pounds is a damn nice price. Forget about all of that conversion *****. THEY ARE DIFFERENT CURRENCIES FOR DIFFERENT COUNTRIES. They can afford it, trust me. Just like we can afford our $50+ games.

by xavis75211 - 2009-08-01 12:41
» ...

just more greedy asswipes trying to get more money. they must be republicans, LOL

by Csyrah - 2009-08-01 13:03
» ...

Im ready to go on a suicide mission... I say raise the prices. You will be dead! I will go up every floor until I find every last publisher. Dont fck with my video game prices man... or I will fckin make you pay for everyones funeral.

by Csyrah - 2009-08-01 13:05
» btw...

as of now, Activision is in my sight... go ahead raise prices, I dare you.

by apex05 - 2009-08-01 13:06
» Shovel ware

If Sony would just take it's finger out it's arse and drop the price of the Ps3 so more people could buy it and improve the Psn store, then developers could make the shovel ware with a low production cost that could fund the big budget games.. And i know most of the shovel ware games are a load of crap on Nintendo, but Microsoft and Sony need to take some lessons from them to keep everyone happy.

by Hekynn - 2009-08-01 13:20
» WTF!!

I swear Activison CEO and the other big ceos need to get a freaking life all they care about is *****ing money! People during these rough times can't buy games at that price!!

by rollypoly - 2009-08-01 13:38
» bull*****...

blockbuster titles usually make their money back on launch day/week... same with blockbuster movies.



i can see where he is coming from however. gaming's focus has switched from having fun to making my eyes bleed and frustrating me to no end. i didn't start throwing controllers until the transition to 3D.



it takes a lot of artists and sadistic devs to achieve that. if everyone cared a little less about 60fps 1080*****ingp, and more about how fun a game was, this would almost be a non-issue.



providing entertainment should lead to a comfortable life style, however not doing a good job should be punished... not made up for by over charging on other titles.

by lavino - 2009-08-01 13:48
» Voice from the consumers...

You make crappy cheap stuffs (aka Wii's crap) and I'll stop buying your sh*t. Simple as that. At the end of the day I don't pay my bills with the games I bought. But you pay yours with the games you sold.



You make expensive highend stuffs I wait for it in 2nd hand.

Which ultra expensive highend game made 4 years ago still over $20/$30? (plus you are not making my money... who ever runs the shop or the first hand owner does) Don't worry, I can wait. There are plenty to choose from in the USED section.



You make reasonable priced good stuffs I buy it on release day with a pre-order. Which I can enjoy it earlier, and you can pay your bills on-time.



Three ways to choose and the choice is yours...

by Annony - 2009-08-01 16:01
» 90 dollars per game?

Great way for a game developer to commit suicide...



As long as I can remember video games have been about $50-70 each. While perhaps the earlier games (Snes, Genesis, etc) may have been easier to code by today's standards, the format (the RAM cartridges) were expensive. Lucklily digital disks (CDs, DVDs, Blu-Rays) make publishing video games much less expensive and it's primarily the reason why games prices have stayed pretty level these last 20 or so years. Meanwhile, programming has become much more complex for the most part.



Luckily now there are other nice little tools that keeps production costs down: Dev tools and Pre-developed game engines (ex: Unreal Engine, CryEngine, etc). Games don't need to be programmed form the ground up, so most of the work isn't raw C++ code. (That would be HELL)



In fact, Modern Warfare 2 is using the IW Engine, which is present in all of the new and recent CoD games and is licensed out to other game developers. So what Activision is really saying is: "We want to double-dip by charging more to the consumer for our work, as well as licensing our work to other companies for a profit."



Sorry, I just don't see how $90-110 games can POSSIBLY be justified, especially in the current world economy where people aren't throwing away money like they used to do. I imagine that if you started selling games for 50% MORE than they cost right now, then 50% of the market will give you the middle finger.

by hush404 - 2009-08-01 16:10
» my two cents

First, I have issues paying $70 for a game now, generally letting them slip till their cheaper. Like **** Im paying $90 a pop.



Developers need to rethink their resources or something... cuz if games go any higher... the industy is just going to bottom out.



Also... a game like COD MW2 could sell for $30 and activision would still make buttloads and buttloads of money. Think, a Game selling superwell on 2 consoles for oh lets say 6 million units! THat's $180 million going through hands (yes i know devs dont see all of it but). double that at $60 and bam 320 million! What kind of return do they need?

by FelisCatusLover - 2009-08-01 16:10
» ...

They made the game, they can charge as much as they'd like for it. How would you like it if you made something and everyone wanted you to sell it at a low price? And as for the pirates out there that think its OK to steal video games cause they cost too much well, I suppose if a new TV or something came out and it cost more then you expected, you'd just walk in and steal it too, right? If you think something is too expensive then why don't you make something better and sell it for less? You think a game is too much money? Why don't you go hire yourself some programmers, artists, voice actors, etc and make a better game then sell it for maybe $20 instead of the regular $60?

by GUNBEHINDTHESUN - 2009-08-01 16:20
» Greedy Bastards

I know all the team don't agree on that price scheme, but the few that do need to be fired. How many people made this game anyway? Really, that is a ripoff. At today's current prices and we know this game will be great, there is no reason to rip off the consumer. I know I won't buy it until they bring down the price. There are so many great games here and coming, I would have to be rich to pick them all up.

by rollypoly - 2009-08-01 16:50
» lol

on piracy... that analogy is so flawed a wet noodle could poke a whole in it.



what if you never owned the tv set to begin with, they just let you use it for an undetermined amount of time AND you were prohibited BY LAW from fixing it when it breaks? what if the store you bought it at refused to take returns because it sucked? choose another physical product and i'll pick that apart as well.



on the tirade against consumers... how dare we have an opinion... it's not like our money is what is making this all possible... the nerve of some people.



if you knew anything about business you'd know the consumer is always right... regardless of whether they are or not. it's their money and if a business wants it, they have to give them what they want for it.

by VashioKun - 2009-08-01 17:46
» You're right

They made it they can charge as much as they want, but as a consumer I'm saying no.

by thexile - 2009-08-01 18:22
» Raise the price

so that we can justify piracy.

by galson - 2009-08-01 21:04
» Yeah

But after adding shipping costs there's quite a little difference.

by galson - 2009-08-01 21:07
» ...

Games would be pirated even if they were $1, mate.

by galson - 2009-08-01 21:11
» ...

Right you are mister, games nowadays lack the climate and the spirit, it's all about graphics, but where the hell is gameplay?



I've recently dusted off my Gamecube and am having hell lots more fun than on PS3.

by Acteon - 2009-08-01 22:10
» Huh

The simple fact is that the UK is seen as a total walkover for the games industry, and always has been. Import SNES games used to retail for £64.99, and that was 15 years ago when money was worth something.



It's not just Activision, Sony's insane PSP Go! pricing means that we're paying 1.6x more than the US for the same product - even taking VAT into account that's indefensible.



As a UK gamer, I resent having to subsidise the industry in other countries - I don't see any of this ridiculous pricing in the US or Japan, so I simply won't pay it. Waiting for the sales usually saves you a bundle - PS3 & Xbox 360 games were recently being sold for £6 in Morrisons, or just import several games at once, which saves on shipping.



Personally I play more retro titles these days than new ones anyway.

by Solid Snicker - 2009-08-01 22:27
» .

jesus christ monkey balls,



i haven't bought a game since COD WaW came out, (i tend to try and only buy good games rather than kinda crap games that i'll forget after two weeks) and i was really looking forward to getting modern warfare 2 but not if it's that expensive.



although it says its £44.99 on play.com? I'll probably wait a couple weeks for the price to go down and get one off ebay.

by unggoy - 2009-08-02 01:04
» really?..

yeah right!!.. as if you can do anything to change activision's decision.. whatever dude!!!..

by unggoy - 2009-08-02 01:07
» wtf?..

what's that gotta do with the ps3's pricing?.. non-sense!!..

by unggoy - 2009-08-02 01:10
» stfu!!..

if you dont wanna buy the game then stfu!!..

if you cant afford the game then stfu!!..

none of youre ranting will change things..

its as simple as that..

now, ima stfu..

by Walo - 2009-08-02 01:19
» Don't fall...

this is just a market experiment with our pockets, don't fall for it or a bad precedent will be set.

by Shizomou - 2009-08-02 01:22
» WRONG

He's got that backwards...non-blockbuster games need to be cheaper.

by Tekkenlord - 2009-08-02 06:02
» not only that

finally the people are beginning to see the scam in all this cuz they talk bout "good games" needs to charge more but how come nobody talk bout how crap sh.it.s like fifas or need for speeds and basically al the recycled piece of po.o that ea does SHOULD COST LESS than a game that took YEARS of development like god of war 3 or a Halo game or Super mario galaxy, some id.iot up there said that in the nes time we payed more for games, but u can tell when a st.upid kid writes cuz if he really KNEW AH.IT then he should remember that in the nes time not ALL THE GAMES have the same "release price" nowadays we have to pay 60 bucks alike for any game that comes out and thats a SCAM how come if i want tekken 6 i have to pay 60 bucks and if i want madagascar 2 i have to pay the SAME 60 BUCKS???? considering that madagascar 2, any bob sponge game took less than a week in development (let's be honest) a fifa game that HAS THE SAME ENGINE than the previous one (i can swear they only change the *****ing title an 8 for a 9 i mean for fuc.kin.g christ sake) the industry has gone to hell since it became "casual" and "popular"

by Deliverance - 2009-08-02 06:45
» YEah

Really EA is notorious for using that same engine year after year they have no prob slapping that 60 dollar price tag on it but really if everyone is stupid to buy a game for one minor enhancement which millions our on Maddens point of view then so be it...Price raise tho we all know the developer is making its killings they always have I have a feeling years from now *****ty games and minor enhancements wont cut it in the market and it will stop but that will take a lot of intelligent consumers.................. which all just leave it at that. ;)

by Hekynn - 2009-08-02 08:17
» SHUT UP!

Hey bastard shut the f up! People like me can't buy every single game at that price like you can. But for a $90 game I ain't buying that cause the company is so *****ing GREEDY!

by lavino - 2009-08-02 09:09
» It's a free market...

Let them try and we shall see... Adam Smith was, is and always will be right.

by xXxZEROxXx - 2009-08-02 09:29
» err

Democrats*

by xXxZEROxXx - 2009-08-02 09:32
» The only people..

Nintendo keeps happy is, Parents and children ages 2-11

by xXxZEROxXx - 2009-08-02 09:34
» @Rolly

Dude, you've never thrown your controller until 3D?

Have you ever played the first megaman?

by Csyrah - 2009-08-02 09:50
» ...

It was obviously a joke man.. way to notice sarcasm when you see it. Rather then take it as a joke like everyone else did... theres always one narrow minded person that has to reply with something to kill the potential joke and eliminate any use of sarcasm. Good Job! maybe we should all take things seriously like you do.

by Csyrah - 2009-08-02 09:53
» ...

Your right. I buy Madden every year and feel like an idiot in doing so. In this case though, Madden 08 was such a POS on the PS3 platform, I felt I had no choice but to buy 09 for the hope of having something playable above 30fps and without lag. 09 still freezes up in franchise mode while I play it... so now ill have to buy 10 in the hope I can have a playable version of Madden. Yeah.. im an idiot.

by BloodMachine - 2009-08-02 11:51
» Crap games should be cheaper

Look at GTA IV. Or GT5. They're fantastic, the level of detail and content surpasses just about any game ever, but they're forced to be the same price as games like GRID, which has about 50 cars against GT5's 800+. Solution? GRID should be cheaper. Gamers don't want to spend more, but ***** games shouldn't be the same price as the really high quality ones. GRID isn't *****, but it doesn't have what GT5 does, it didn't take the time to make, and it didn't cost as much to make either. I guess one difference is that GT5 will sell more, but still. GRID is right at the top of the video game price range, and it doesn't deserve to be.

by xophaser - 2009-08-02 13:43
» platinum game will no wbe $45

F-you Actiivition, you guys are greedy. You make crazy claim not to support the PS3 with low profit margin and then tell them to sell their console for pennies. You need to weather the storm like all of us in this economy too.

by xavis75211 - 2009-08-02 15:40
» ...

when did games become $70?

by FelisCatusLover - 2009-08-02 16:50
» @ rollypollyolly

Duplicating an object and then selling (or giving) it is illegal and considered theft. If it were possible to duplicate a TV, it would be illegal to sell those duplicates. Since it is possible to duplicate software, it is illegal to sell/give it. Thieves like you are exactly why the PSP has no games, why so few developers trust Sony and why emulators are rarely used officially. You pieces of crime committing scum belong in prison or worse, you should have your *****ing hands cut off. Good for nothing thief. What's next? Gonna rob a bank? Maybe mug an old lady? Or pirate another video game? Go die you evil piece of slime.

by Aces In The Palm - 2009-08-02 20:52
» WHAT THE F**K!!!!!!

that'll effect aussie prices too, we already pay up to $130 for "blockbuster" games.

and when you beat it in one weekend, like 6 to 7 hours of play. tell me its not too much money as it is.

if you want more cash for what you put out, put some content in and give it lastability.

i will gladly pay $130 plus for any game that has good gameplay and length.

take fallout 3, the game if you do just the story can be done pretty quick, but the map is so big and full of towns, so can last quite a while.

seems to me the games are looking better and better, but are getting shorter and shorter.

by D.Dark - 2009-08-03 02:11
» Why even convert it?

I don't understand why you guys in Europe constantly convert the cost of the game to US when you want to complain about how high the price is. The conversion shouldn't even be considered. Do we all say, "Man, that game costs 5,000 Yen when you convert it, that's way too much"? No...we should just look at how much it costs to pay for it in our own currency and stop worring about how much it converts to other currencies. EU pays 54.99 and US pays 59.99, that's close to me.

by Deliverance - 2009-08-03 07:22
» Realistic

Nothing is realistic about wrecking a car in a wall at 120 mph and nothing happens and out of those 800 cars how many are worth a *****..Id rather have 50 to 100 that are actually worth a drive and leave the damage and the since of speed and excitement

by x0rcy5t - 2009-08-08 06:21
» @xXxZEROxXx

for some reason that made comment made me giggle

by x0rcy5t - 2009-08-08 06:23
» I..

really think bottoming out for an industry would be really good, especially in these current economic times. There's no where else to go but up from there.

by x0rcy5t - 2009-08-08 06:25
» @FelisCatusLover

someone is mad they can't come up with a proper analogy

by x0rcy5t - 2009-08-08 06:29
» Stealing is stealing

Just cause prices are high doesn't mean that will justify piracy. Just like stealing food to feed your family would not justify it. Although it might seem like the right thing to do. You just have to face the fact that you're not stealing because you think those prices are high. It's because you are too poor to want to buy it

by Aces In The Palm - 2009-08-08 21:35
» @ feliscatlover

no one trusts sony because of piracy?

PS3 is the only system not able to be hacked, which console has sold the most consoles and games so far.

you dont know s**t.

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