Over the past few days, gamers are fuming over the fact that next-gen games will see a significant price hike. Apparently, games for the Playstation 5 will be releasing with a $70 price tag in comparison to the $60 on Playstation 4 and Xbox One. Third-party publishers seem to follow that pattern too when it comes to next-gen games. Despite the nagging though, NPD analyst Mat Piscatella believes that next-gen games will sell “pretty well”.
NPD analyst Mat Piscatella believes that the next-gen games price hike won’t be enough to drive gamers away from purchases. During a recent podcast with Virtual Economy, he said that video games nowadays have different price models. As a result, it’s not a big deal for Playstation 5 and Xbox Series games to be priced as “luxury tier” titles. He says:
“There are so many options and entry points into gaming – the really low-cost options for people are there; free-to-play games, subscription spending – they’re all there, there should also be more options that are more higher or premium or even ‘luxury’ tier for certain types of games. You can always bring prices down but it’s important to get an adequate return for the investment. I know a lot of people are going to get mad about it, but the games can be worth more than they’re currently being priced at.”
He goes on by saying that the price hike for next-gen games isn’t necessarily happening due to production or development costs. Having a new luxury console sometimes means having some drawbacks. He claims:
“If [companies] want to make the case that they’re doing it because of X, Y or Z, I guess you could try to make that case, but when you look at the financial statements or the earnings reports, you can argue the other side. But ultimately, the market demand is the market demand. You have been paying a premium for years to play a game on day one.”
God of War 2 and Horizon Forbidden West. However, everything will be clear after Playstation 5 and Xbox Series S & X release this November.