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Analyst: the price tag of $70 will not prevent sales of games for next-generation consoles

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Analyst: the price tag of $ 70 will not prevent sales of games for next-generation consoles

According to Mat Piscatella, a game analyst at NPD Group, after raising the price of video games from $60 to $70 with the transition to the PS5 and Xbox Series, starting sales should not change much. He noted that the difference of $ 10 will not affect the decision of players who are used to buying games on the day of release — so the demand will almost certainly not decrease.

Piscatella added that companies are focused on market demand. Not the fact that Sony, which has already confirmed the price increase, went for it because of the increased costs required for the development.

You are overpaid and have been overpaid for years to play something on release day.


No difference. If companies want to justify their decision with reasons X, Y, or Z, they can, of course. But if you look at the financial results in their reports, you can easily argue with their arguments. After all, market demand is market demand.


Mat Piscatella
analyst

The analyst admitted that it is impossible to accurately predict the reaction of players. If the vast majority really refuse to buy at the start because of the $ 70 price tag, then publishers will respond accordingly and will soon return to the previous cost. However, this is unlikely.

For most big-budget games, a $ 10 raise won’t change anything — people will happily pay. They might grumble, but they will definitely pay. This is indicated by the sensitivity of players to the price, especially on the day of release. […]


You can always lower prices, but it is important that companies ‘ investments bring an acceptable income. I know a lot of people will be angry about the price increase, but games can actually cost more than they are worth now.


We need to see exactly how customers will react. If no one will buy games for $ 70, then everything will change very quickly. But I have a feeling that they will sell very well.


Mat Piscatella
analyst

Piscatella also drew attention to the fact that with the development of subscription services like Game Pass, gamers have more and more choices about how to pay for the right games. There are options “for any wallet” — so the sensitivity of most players to the price is not so high.

There are so many different options and suitable “entry points” for those who want to start playing video games. People can also find very cheap options. There are shareware games, there are subscriptions…


And if they are, then some games should have more expensive, ” premium “options, or even” luxury”.


Mat Piscatella
analyst

I enjoy playing games, and gaming is a passion of mine. Among my favorite games are Tears of the Kingdom, GTA, and Cyberpunk.

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