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Video Game Industry Pressured to Raise Prices as $80 Tags Falter

Shawn Layden warns that decades of steady game list prices have pushed AAA budgets beyond sustainable levels.

Overview

  • Former PlayStation US boss Shawn Layden says that game prices should have risen with each console generation to keep pace with soaring development costs and inflation.
  • Layden cautions that AAA projects costing over $200 million now need roughly 25 million unit sales to break even, a threshold most studios cannot meet.
  • Publishers have leaned on microtransactions, downloadable content and deluxe editions to elevate average revenue per player while keeping base game prices flat.
  • Nintendo launched its first standard $80 title, Mario Kart World on Switch 2, and Microsoft briefly planned $80 for The Outer Worlds 2 before reverting to a $69.99 price.
  • Industry fear of losing consumer traffic has hindered first-mover list-price increases, leading to abrupt and uneven experiments with higher tags.