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Fils-Aime: Cheap games threatening game industry

Posted Feb 5, 2011 at 11:05AM EST by Karl B.

Listed in: PSP, Wii, PS3, Nintendo DS, Xbox 360, PC Gaming, iPhone, PS Vita Tags: industry news, news, Nintendo
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1. Fils-Aime: Cheap games threatening game industry
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Gaming can be a rather expensive hobby. Not only do you have to buy a console or handheld platform to play a game on, you also have to buy the actual games themselves.

 

On average, PS3 and Xbox 360 games can reach around US$ 50 to US$ 60 per game. Wii games are less expensive, but a lot still reach around US$ 40. Portable games are usually priced at around US$ 20 to US$ 40.

 

consoles

 

That's the state of the industry when it comes to games released for Big Three platforms. There are way cheaper games for these consoles, of course, but they don't compare to the sheer number of cheap games and apps available for smartphones.

 

At first glance, cheaper games mean consumers get a better deal. Nintendo of America president Reggie Fils-Aime, however, thinks that these inexpensive and "candidly disposable" games present a danger to the gaming industry itself. 




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Comments 


 
# RE: Fils-Aime: Cheap games threatening game industryKarl B. 2011-02-05 12:12
Personally, I think cheaper games serve as a good gateway for non-gamers. Of course, not all of them are good, but then again that applies to full-priced console games as well.

I dunno about you guys, but Reggie's comments just sound a little anti-consumer to me.

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-2 # A little bit...Silver_Infinity 2011-02-05 12:46
...but he's got a point.

I'll tell you that when it becomes very commonplace, cheap games devalue games in general.

Take piracy where I live. Since Internet speed past 1.5mbps isn't commonplace yet, so many people rely on pirates who sell their games on burned DVDs. As a result, legit outfits selling the real thing for the actual price suffer. And it has become the norm, so even parents have generally accepted games to be only worth about the equivalent of US$1-3, and so refuse to buy the real thing for their kids.

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+1 # RE: A little bit...UltimaXX 2011-02-05 23:59
Piracy isn't a fair comparison to make, though. The reality of the situation is that markets change. They always have done, and they always will, and companies need to learn to adapt to the new markets to carry on making a profit. Innovation is the key to capitalism, and companies just don't have the right to bitch and moan when they start falling behind thanks to a lack of ingenuity.

Okay, so people with smart phones are used to buying games on the cheap... but they also buy a lot of games, so the gross number of sales shoots up too. Cheap games aren't threatening the industry, they're threatening the near-monopoly publishers like Activision have on the industry.

This is exactly the same reason you'll never see BP or Texaco pushing for technological advancements in renewable energy.

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+2 # RE: RE: A little bit...Snaku 2011-02-06 02:57
Quoting UltimaXVIII:
Innovation is the key to capitalism, and companies just don't have the right to bitch and moan when they start falling behind thanks to a lack of ingenuity.


That's a good point, but it comes down to whether you think of games as business or art. Obviously it's both, but it seems that Reggie's complaint is that the business aspect is interfering with the art side: if there ceases to be a market for the more expensive games that require more talent and production values to create, then we'll end up with nothing but the "disposable" games.

Personally, I'm not sure what I think of the whole thing. I don't have any taste for the disposable games (I think they're crap), but obviously there are plenty of people who do like them and they're money makers. I hope there's still a market for the good games in the future, though, 'cuz I'd hate to see gaming completely converted to these crappy games.

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-1 # You misunderstand...Silver_Infinity 2011-02-07 13:29
It's not the piracy I wanted to highlight - it's the fact that the availability of dirt-cheap alternatives devalues the industry as a whole. I'm not against cheaper games for everyone, but it's the LCD that always determines things, and at $1-2, it makes it harder for the big guns to sell their products at reasonable prices. The larger market (the casual gaming segment) will find it hard to transition to the higher-end; if presented with the choice between a $1-2 dollar app that generally fulfills the entertainment factor, and a $50 game which to the non-hardcore, is pretty much the same thing.

The same concept applies for any industry, really.

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+1 # RE: RE: A little bit...DeltaDAWG 2011-02-07 15:34
You hit the nail on the head with "markets change".

The way I see it is, mobile gaming is starting to put games back in the hands of people who just don't have time to play console games (anymore).

For me, I love games but I just don't have time to play them anymore. I'm finishing up a Wii game right now and I get 1 hour to play in the morning after my gal and I work out. We get up at 4am because has to be to work super early. So I get to play for an hour before I wake my little girl. If not for that I would have zero time. So for the past 5 years I've been subject to mostly portable gaming during lunch, on the toilet, whatever.

My point being, I don't think "being cheap" has anything to do with it. I think we're seeing a major fluctuation in mobile gaming. Especially now that there are some pretty awesome games making it to just about everyone's hands without them doing anything aside from buying a phone that's now capable.

Being able to play your games ON YOUR TIME is the new market change. Many people are starting to notice this which is why you see such major effort being made to "remote play" your games while on the go. But it's in its infancy and it pretty much stinks right now. Hopefully it gets better.

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-1 # him again....ISOHeven 2011-02-08 08:42
"For me, I love games but I just don't have time to play them anymore."

Then you must enjoy wasting 3 hours each day on this site to spite your enemies in childish fashion?

I think this site needs more real gamers and less whiners going on about their life story that nobody cares about.

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-1 # RE: RE: RE: A little bit...Silver_Infinity 2011-02-10 15:37
Mobile gaming is great. I mean, that's why I love my PSP.

But see, it's not mobile gaming that's bad, it's the way they're priced. When people get used to paying only a pittance for their games (mini or no), it makes it harder for the people who make big games (think SC2, MW2, COD:BO, etc) to sell their wares at much higher prices. It's not as if they charge high prices for absolutely no reason.

I agree prices should be cheaper for everyone, but the way the disposable apps are priced, you pretty much can't get lower than that. And imagine spending $100M on an development for an epic game only to sell it at $1. You'd need to sell 100M copies to break even, and we all know it doesn't happen except for classics over the period of decades.

So once again, it's the pricing that needs to be adjusted. The games themselves are fine (after all, I enjoy quite a few of them myself).

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+1 # RE: RE: RE: RE: A little bit...DeltaDAWG 2011-02-12 22:15
Nah, I disagree. I know there are tons of stupid people in this world but I would like to believe that the average person can tell the difference between a casual mobile game that takes them a couple days to play through for .99 cents on the Apple App Store versus a massive 8GB+ console game.

No one expects MW2 to cost .99 cents.

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# RE: RE: Fils-Aime: Cheap games threatening game industrya20z07 2011-02-06 20:30
Let's look at it from Sony or Microsoft's perspective. When the Xbox 360 was first released, Microsoft actually lost $126 on each xbox sold. Sony lost over $300 on each PS3! (And that piece of last-gen plastic crap called the Wii made Nintendo money from the start, unsurprisingly) If gaming companies don't make back money on software, they might decide to cut their gaming divisions altogether.

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# I can't even play for long periods of time...Kaneco 2011-02-05 12:58
When it comes to these apps, they are like playing games that never end or rather games that don't hook up enough attention to make it past to the end all the way through, so you just pretty much waste a $1 in every game that you'll never finish or even pick up to play for no more than 10 min when on the go.

...of course, games like Angry Birds is an exception but it's the minority.

It's risky for the consumer and the game industry when the consumer, who can't help himself buying these cheap games, can't afford or experience any of the big worthy games that are on the real hardcore consoles that are originally and their main focus are games.

Let's not forget the crappy shovelware released at full price when their development time and money doesn't justify it's launch price tag and aside from that some are unfortunately and practically unplayable, on consoles like the Wii, are a huge danger to the industry...that's the biggest sin and should be considered illegal IMHO. xD

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# RE: Fils-Aime: Cheap games threatening game industrycyber_marco 2011-02-05 13:03
"Angry Birds is a great piece of experience but that is one compared to thousands of other pieces of content that for one or two dollars I think actually create a mentality for the consumer that a piece of gaming content should only be two dollars."

So...? :o what's the problem with the price... oh! I get it, the less they cost on the App/Android store, the more they sell as a result no sales for Nintendo and co.(or at least not that much). :-*

I don't own a smartphone but I can't stand buying angry birds for PSP for 10€(I know about the ESRB ratings and blah blah blah...) when at the app store costs 0,99€.

So the problem is that we (as money...er.. costumers) should think that games that cost 50-60€ are very logically priced instead of complaining!

P.S. Magicka has sold 150.000 copies in approximately 2 weeks, and costs 10€. So the total profit is 1.500.000€!!!( I don't think that the production, distribution and the other things cost more than 100.000-300.000€) Just to make sure that they don't have some kind of financial crisis!!! 8)

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# ...symbal 2011-02-05 15:16
Seems a bit of a double edged sword really. One side you got cheap games stopping people buying full priced ones, the other you got developers trying to convince us we should be happy to pay £60+ for premium games forcing you back down to the cheap games or piracy. They just have to realise there's 2 halves to the gaming market now, and bitching and moaning just makes you look like Sony, so developers just have to try even harder now to attract customers.

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# RE: Fils-Aime: Cheap games threatening game industrygtfo 2011-02-05 16:14
i think a more reasonable price for starting price of games should be 30-40 usd

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# RE: Fils-Aime: Cheap games threatening game industryfastdan 2011-02-05 16:34
Watch the video 9:49-10:23. LOL :D

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-4 # RE: Fils-Aime: Cheap games threatening game industryPS360 Owner1 2011-02-05 18:43
Aime, go screw yourself!

Cheap games = Win!

I ain't paying full retail price for crap games.

Cheap, low price games are always better than higher ones.

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+1 # RE: RE: Fils-Aime: Cheap games threatening game industryTechni 2011-02-05 23:25
Quote:
Cheap games = Win!


Sure, if you want iphone quality instead of PSP/DS quality. Forever.

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+1 # RE: RE: RE: Fils-Aime: Cheap games threatening game industryPS360 Owner1 2011-02-06 06:36
You douchebag, there's loads of cheap games for Sega Mega Drive, NES, SNES, GB, GBC, GBA, PS1, PS2, PS3, Neo Geo Pocket, PSP, Xbox, Xbox 360, should I continue?

Now if you don't mind just stfu for your own sake!

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+2 # RE: RE: RE: RE: Fils-Aime: Cheap games threatening game industryKylBlz 2011-02-06 10:15
dude, iPhone quality games are terrible.. USUALLY the price of the game is how much effort was put into making it great (an exception would be Call of Duty, they can charge whatever they want because of the name)

does anyone remember when gaming almost died because a bunch of companies were punping out useless cheap shovelware? I personally fear it will happen again, thank you (mostly) Apple and Nintendo, for catering to casual, cheap, throw away games.

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-1 # RE: RE: RE: RE: Fils-Aime: Cheap games threatening game industrya20z07 2011-02-06 20:14
Quoting PS360 Owner1:
You douchebag, there's loads of cheap games for Sega Mega Drive, NES, SNES, GB, GBC, GBA, PS1, PS2, PS3, Neo Geo Pocket, PSP, Xbox, Xbox 360, should I continue?

Now if you don't mind just stfu for your own sake!


Why so hateful? If you're a cheap-ass gamer, then good for you. No need to get all angry, especially when Techni made a very legitimate point.

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-1 # RE: RE: RE: RE: RE: Fils-Aime: Cheap games threatening game industryPS360 Owner1 2011-02-07 11:02
He thought ALL games that cost $2 were iPhone/mobile quality which is total BS!

Have fun playing shitty games at full retail price.

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# RE: RE: RE: RE: RE: RE: Fils-Aime: Cheap games threatening game industrya20z07 2011-02-14 00:53
Not all of us are incapable of making educated decisions about which games to buy. I'll usually watch a couple vids of a game and read a couple reviews to see if it is any good before I buy it. If it looks bad, I won't buy it. Easy as that.

I challenge you to name 10 $2 games that are meant to be played for full gaming sessions (at least an hour or two).

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# RE: Fils-Aime: Cheap games threatening game industryAndy Mitchell 2011-02-05 22:10
Comparing Angry Birds to console games? Uh HELLO?! It's originally from a PHONE. I should hope that games on phones don't cost silly amounts. Is this guy for real?

And I personally think high prices damage the industry more. If people don't like high prices, what do you think they do to get around it? At least with low prices games are sold instead of pirated...

Some of these people in big companies need a massive reality check.

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# Games: Fills-Aime threatening Cheap Games Industryjigenzan1 2011-02-05 22:38
^precisely

Whatever Reggie. I'll be the first to admit that I started looking into piracy because $60+ for a game that could just as easily be sold for half the price just isn't attractive at all from a consumer standpoint. While I understand companies have to make a profit, the margin of profit that companies set for their games right now is just greedy. If used games didn't exist, I would not be buying any of these over-priced games. If you don't like it, suck it up and lower the price closer to the competition. Gaming should not be restricted to "a hobby of the rich".

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+2 # No.anon123321 2011-02-06 02:26
This is a dumb statement across the board. Maybe morons will think all games should be $2-10 because angry birds is... but any logical person will see that a small game like that does not take nearly as much time, dedication, and resources as a game like Oblivion or Mass Effect.

If anybody came to you and complained that they got some cheap game on their phone and Mass Effect 2 should be that cheap as well... you'd laugh in their face.

Now, games could probably sell for less than $60, yes, but logically, a game like Angry birds may give you a few hours of fresh gameplay... For $2... Then you go any play a game like Oblivion which has given me and thousands of other players hundreds if not thousands of hours of consistently fresh gameplay... and they should be the same price?

Just more analyst BS. Granted when a game is only 4 hours long with repetitive gameplay like The Force Unleashed II... with no online... then yeah, $60 is crap and the developer/publisher should go bankrupt for even thinking about selling shovel ware like that at full price.

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# RE: No.PS360 Owner1 2011-02-06 09:11
40.00$, 40.00€, £30.00 these prices would all be welcomed but they always rise up the price too much and then don't be suprised if they're pirated.

Used games market is so much better, they got from old to new games with low prices.

Ignorats think that only mobile games cost $2, pathetic fools. Like you, anon123321 and Techni.

It's no suprise people are ignorant they're never aware of anything.

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# wat...anon123321 2011-02-06 22:37
What the hell are you talking about?

I honestly have no idea what you're trying to say to me. Should I be insulted?

I'm "Ignorat" because you think that I think that only mobile games are $2?

Never said that but ok. If you think that you can find Mass Effect or Oblivion for $2 than be my guest. GameStop doesn't sell PS3 games that low, new or used. It would have to be a budget title that no one ever bought to begin with and even then the lowest would probably be $5... Not tat first though. It would take years to get that low.

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# RE: wat...PS360 Owner1 2011-02-07 11:03
USA must be out of the league then.

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# RE: No.Walo 2011-02-06 10:40
amen bro

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# RE: Fils-Aime: Cheap games threatening game industryTron 2011-02-06 13:32
Funny, I've always thought the opposite.

Games that are cheap to make yet sell at full price are ruining the industry.

Of course, that is only from a consumer standpoint, not the corporate greed standpoint Reggie is referring to.

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+1 # RE: RE: Fils-Aime: Cheap games threatening game industrySilver_Infinity 2011-02-10 15:42
Oh, I agree so much.

But then, it's generally up to you to find out if a game is good or not. It's like trying to watch a movie - you really can't find out until you watch it yourself.

Or spoil by reading reviews.

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# mer2329mer2329 2011-02-06 15:43
if they thing cheap games are a problem they should make their games and systems/handlelds cheaper to compete

america is all about competion

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# That's bullshitprototype.aim-9 2011-02-07 11:35
There are many examples of great games that are cheat (IMO). Look at Left for Dead 2 and Magicka (for pc, of course), they can be bought in steam for 14€ and 10€ respectively and are both cheap and the greatest game I've played in the past weeks.

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# RE: That's bullshita20z07 2011-02-14 01:03
Left for Dead 2 is almost a year and a half old, so of course it's cheap now. When first released, it sold for the full $60. Magicka is fun, but tbh it doesn't look like it took all that much time and money to develop.

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# RE: Fils-Aime: Cheap games threatening game industryBut Fukir 2011-02-08 16:33
"candidly disposable"


Reggie Fils-Aime always cracks me up.
What a bizarre and candidly intriguing character.

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# RE: Fils-Aime: Cheap games threatening game industryBut Fukir 2011-02-08 16:45
Cheap games and good games are apples and oranges.

People who would be interested in 3rd birthday would not prefer 60 one dollar games for the same price.

Although one dollar games might overlap the audience for that gimmicky underpowered tripe that nintendo puts out, thats probably what Mr. Reggie is complaining about.

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-1 # yeah...5h4d0wM4n 2011-02-08 17:13
The gaming industry hasn't gotten a cent from me in 2 years. There was a time when I couldn't give a sh#t how much a game cost; if I wanted it, I bought it. The most I ca afford to spend nowadays is around $10.00, and even then, why buy something you can get for free?

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# RE: yeah...UltimaXX 2011-02-09 02:45
Pretty sure rapists have used the same reasoning in the past. Why go through the hassle of getting consent if you can just clean the pipes regardless? :-?

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+1 # RE: RE: yeah...Silver_Infinity 2011-02-10 15:43
Right on. And it's breeding that kind of mentality that is dangerous for the industry.

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# What about the seal of quality?homerhomer 2011-02-09 00:43
I'm fine with quality done by individual console manufacture. If they want a bunch of crap/cheap games it's really up to them. But with that said the industry need to never forget Pacman, ET on the Atari 2600 and the video game crash of 1983.

Pacman
http://www.youtube.com/watch?v=HL2p2ANFlQ4

E.T.
http://www.youtube.com/watch?v=2DTjLG3usQo

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# what nonsenseRio 2011-02-09 05:08
What bollocks.

Back in the 80s, companies complained that because of piracy they couldn't reduce the asking price of their games. The premise being that if people didn't pirate, games would be cheaper.

Now they're moaning about how games are cheap, despite not being pirated. Markets change! You can't have your cake and eat it too!

In regards to piracy and cheap games, the fact is that most heavy pirates also buy a considerable number of games commercially as well, which keeps the market afloat despite piracy. In fact if everyone heavily pirated a lot of games and still bought a considerable number commercially, the market can still function. It's been like this since the dawn of the Spectrum and C64 8-bit era.

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+1 # RE: what nonsenseSilver_Infinity 2011-02-10 15:49
Right. And they need to price the game in the manner that they do because they factor in piracy.

That's why great selling games get price drops really quickly. They aim for their ROI, then scale down once it's almost or already met.

Imagine if you had spent a couple of million on development, production, and marketing, then sell at dirt-cheap prices? Sadly, games have an expiry date from a marketing standpoint.

Reply
 

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