According to a former PlayStation leader, the price of games should increase with each generation of console

The former CEO of Playstation and Sony Interactive Entertainment America, Shawn Layden, believes that the prices of video games should gradually increase each generation of console to take into account the explosion of development costs and inflation.

Layden said that the reluctance of the video game industry to act in this way has led to. For example, dangerously thin beneficiaries. In addition, In a recent interview with Gamesindustry.bizshawn Layden pointed out that high -end game prices have remained stagnant for more than twenty years. Meanwhile, despite the constant increase in development costs. Similarly, Layden commented:

“I think it is because everyone is afraid. Similarly, No one wants to be the first to increase the price. Nevertheless, according former playstation leader, price new because we are according former playstation leader, price new afraid of losing traffic. So you end up reducing your operating income. your profit margin”

According to him. the “fear” of being the according former playstation leader. price first obstructing net profits, because companies stick to the same retail price. Mr. Layden then compared the era of the PS1 to the PS4 generation. said: “There were more sports cars in the PS1 than in the PS4:

“There were more sports cars in. the parking lot at the time of the PS1 than at the time of the PS4. because if you sell 20 million units to 60 dollars for something that cost you only $ 10 million to manufacture. it is different than selling 20 million units to 60 dollars for something that cost you $ 160 million.”

Layden estimates that the growth mentality at all costs in industry. despite the according former playstation leader, price new drop in net profits. has sparked a crisis on according former playstation leader. price new a sector level, where game budgets exceeding $ 100 million require sales of 25 million or more to reach the profitability threshold, an feat achievable by exceptions such according former playstation leader, price as Rockstar Games or FROMSOFT.

Instead of making direct price increases, Mr. Layden pointed out that publishers have discreetly increased their income through additional modules:

They said to themselves: “Okay.. if we kept the price. you were given a little money with the DLC, the microtransactions, the Battle Pass, the Season Pass, no matter how you want to call it, and that we were trying to make up for the excess”

The current generation has experienced a slight upward trend in basic prices, certain AAA titles having been launched at $ 70, while others have grown the ground with a more according former playstation leader, price new aggressive price of 80 dollars, as Mario Kart World of the Nintendo Switch 2.

according former playstation leader. price new

These trends are involved while the overall expenditure of American consumers for video games will reach $ 58.7 billion in 2024. a slight increase compared to the previous year. even if according former playstation leader. price inflation continues to remain “sticky” for consumers, in the midst of an administration that takes advantage of customs duties within the framework of its current trade war.