EA Execs Predict Next-Gen Games to Cost $70

new game prices

According to a post on Edge, Electronic Arts’ execs Rajat Taneja and Blake Jorgensen have stated that they expect games for the PS4 and the next-gen Microsoft console to cost about $69 each—a ten dollar increase from the current-gen’s industry standard of $59. The reason for the increase, it seems, is simply that the hardware and games will represent a technological leap forward, requiring a higher price.

The executives offered their insights at Morgan Stanley’s Technology, Media, and Telecom Conference, explaining that the new consoles higher power necessitate a price to reflect that. Said Taneja:

“I won’t go into the nitty-gritty of every component, but if you look at it in an aggregate basis, the new consoles are between 8 and 10 times the power of the current generation. The architecture of the consoles is based on standard PC components and technologies. So our own investments in our back end engine like Frostbite, our libraries, our tools will very smoothly run on this and make it easier for us to innovate to the new console technologies themselves. What used to take months in the past will now take days to do.”

Jorgensen added:

“I think, typically, at the start of a cycle, you’ve seen the pricing raise, say, to $69 for a core piece of software. And then over the life of those, that’s drifted down to introduction price, typically now around $59. We haven’t yet set pricing on our gen 4s, but you probably see a similar trend to that during the start of the next cycle.”

It’s disappointing, but not terribly surprising, to hear about a potential price increase in video games. From the last generation to the current one, prices rose from $50 to $60. Even if the games don’t look terribly different from this generation to the next one being ushered in by PlayStation 4 and whatever Microsoft’s got planned, there’s supposedly a lot more that’s going to be happening under the hood.

But while no one wants to pay $70 for a new video game, don’t forget that the Nintendo 64’s new games cost that much for a long, long time since they were cartridge-based and cost more to manufacture. And with inflation, $70 cost a lot more back then than it does now. Even still…I bristle at the $70 price tag. I can barely stomach $60, but $70? Ugh.

Of course, just because EA’s execs predict higher game prices doesn’t mean that it’s going to happen. Consider the statement of Jack Tretton, President of Sony America. He told CNBC last week about Sony’s plans for software pricing:

“We’re going to welcome free-to-play models, games from ninety nine cents up to those sixty dollar games.”

This, seemingly, put the thought of an increased price for games to bed. So who’s right? I suppose we’ll have to wait until the games actually start coming to stores to really know for sure. But even though inflation makes $70 cost less than it did a decade ago, the economy’s in much worse shape now than it has been in quite a while. The PS4 already seems like a pricey piece of hardware, and the Wii U’s games are all at $60. If nothing else, it would make consumers pretty upset to see a new gadget with even more expensive software come out when they’re still scrimping for every penny.

At the end of the day, though, there’s a cost of doing business, and the ultimate goal is profit. I’m sure Sony and the software-makers are hard at work figuring out the most acceptable ceiling for game pricing to still get some cash in their pockets. Let’s hope they come up with something that can make us buyers happy too…

Via Edge and CNBC

  1. Cool it was nice of them to tell us beforehand so I know in advance I won’t be buying anything new! $60 was the limit for me so I’ll just have to forgo purchasing anything until three months aftre it comes out.

    Yet I can’t really see this happening. Games are so much easier to mass produce nowadays so any increase in price would be only because of the greed of the makers. Plus most games are going to be available to purchase day one for digital download so a price increase would only be met with HUGE backlash.

    • i will painfully have to agree with you. i was kind of mad when the games went up to $60 originally, but it wasn’t that bad. but i also told myself that i would not buy a standard edition of any game over that price. i will also be waiting until price drops because this is some b.s.

  2. I find this to be funny considering that PC’s cost more then consoles and require more to run them and yet they cost less to buy than console games do.

  3. EA and high prices, what a surprise….

  4. If games rise to $70, I’m just gonna wait till they go on sale or something. I already have to deal with rising gas prices, I don’t need entertainment prices to go up… I can always play my old games again.

  5. Wait.. $70.. BEFORE DLC!!? With DLC its $100 for a Game?

    Sorry, Still Burned from APB.

  6. Despite our dollar being almost equal to the USD, games in Australia have been released at $90 or higher. Sure there is import costs, but that definitely shouldnt cost half of the price in America, extra. Because of this, the idea of more expensive games worries me. I can only see myself spending the money on upgrading my PC and benefiting from the already lower prices.

    • Agree, I personally buy everything of ozgameshop, sixty dollars for a new release is a bargain compared to EB games

      • there about the same in New Zealand. a new game in demand starts around the $90-$100mark. normally there around the $110-120mark. one of our dollars buys 0.83us dollars at the moe. sucks.

  7. So they are going to jack up the price another $10 because it’s based on PC technology, makes life easier to create the game, and it can run a 3 year old game engine?

    And your going to make the game full of plot holes and missing characters for the sake of $10-$15 per DLC transaction, methinks you been smoking crack EA.

  8. I guess I’ll have to stick to my current xbox and PC. I might resub to Gamefly eventually.

  9. ALso this will probably be really good for the Indie dev’s who only charge 20 bucks for a good game.

  10. Sure costs a ton of money to re-release EA sports titles yearly with a different number on the title.

  11. “The reason for the increase, it seems, is simply that the hardware and games will represent a technological leap forward, requiring a higher price.”

    Hahahahaha, no. It doesn’t require a higher price. If any, if game development is streamlined thanks to the familiar x86 architecture, then prices should either drop to build consumer confidence, or stay the same to have a profit increase.

    Increasing the price could drop consumer confidence and, as a result, either keep profits the same or lower.

    Oh and.

    “From the last generation to the current one, prices rose from $50 to $60.”

    Not really. The price jumped mid-generation, thanks to ActiBlizzard charging 60USD for StarCraft II, with new Activision titles following suite.

    • You do know that games where being charged for $60 long before SC2 had that price right?

      Regardless. I wont be buying any new game if it will end up being $70 or higher unless it is a Collector’s edition, and even then it would have to have some nice things in it for me to do it. The only way they can charge that much for it is if people would be willing to buy it at that price. ( well enough for them to keep it at said price )

      Eventually we might be seeing a market crash for games again. Just my thoughts anyways.

  12. If these big as whole publisher like EA and Activision, and in some respect Bethesda, try to sell me a 70 dollar game on Steam I am likely to flip and give them the middle finger. Bad enough they are trying to whore out our money on PC when they can sell it cheaper, but now they will likely hike it up again.

  13. you Americans don’t know the meaning of the word expensive, here in Australia we pay $100 for new games, and as much as $120 for some of the bigger AAA games

  14. Games in the UK would sell for just over £40 when just released. I remember call of duties selling for about £42 at midnight launch. $70 = £46 – Guess we’ll be looking at an increase too.

    Back in the day, new PS2 games for £29.99 – those were the days!!

  15. where i live games is 100 dollars

  16. Easy fix, wait for a crack and download all games free. Everyone lets all become pirates and show them we the interweb dwellers hold the power!

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