Why are video games so expensive? - Blu-ray Forum

albertbj · 12-14-2021, 03:59 AM

Well, there are a few reasons. The first and most obvious is, of course, inflation. But there's another reason why I think game consoles, in particular, have become so much more expensive in recent years.

In the past, it was common practice for console manufacturers to sell systems at a loss, knowing they'd be able to make up for it in software sales and licensing fees. But that seems to have more or less stopped in the last couple of generations. I remember when the PS3 launched, it was $600 (mostly due to the BD drive), but the per-unit cost to Sony was more like $800-900. Conversely, I remember hearing that the per-unit cost of the PS4 at launch was actually slightly below its $400 price tag. Sony was no longer selling consoles at a loss, and I suspect that became the new industry standard.

You also have to take into account what people are willing to pay. Back in the 80s and early 90s, video games were still seen primarily as being for kids, and it would've been a lot to ask for parents to shell out more than $200 for a new system every few years. But now, the industry, as well as its fanbase, has matured, and people today are obviously willing to pay $500 for a new console. Otherwise, companies would still be doing things the old way. Granted, I don't think we'd still have $200 consoles like we did 30 years ago, but if Sony's market research showed that people would refuse to pay more than $300-400 for a PS5, that's the price they'd sell it for.

12-14-2021, 03:59 AM	#2
albertbj Senior Member Member since:Oct 2014 4K collection:82 Blu-ray collection:734 DVD collection:416	Well, there are a few reasons. The first and most obvious is, of course, inflation. But there's another reason why I think game consoles, in particular, have become so much more expensive in recent years. In the past, it was common practice for console manufacturers to sell systems at a loss, knowing they'd be able to make up for it in software sales and licensing fees. But that seems to have more or less stopped in the last couple of generations. I remember when the PS3 launched, it was $600 (mostly due to the BD drive), but the per-unit cost to Sony was more like $800-900. Conversely, I remember hearing that the per-unit cost of the PS4 at launch was actually slightly below its $400 price tag. Sony was no longer selling consoles at a loss, and I suspect that became the new industry standard. You also have to take into account what people are willing to pay. Back in the 80s and early 90s, video games were still seen primarily as being for kids, and it would've been a lot to ask for parents to shell out more than $200 for a new system every few years. But now, the industry, as well as its fanbase, has matured, and people today are obviously willing to pay $500 for a new console. Otherwise, companies would still be doing things the old way. Granted, I don't think we'd still have $200 consoles like we did 30 years ago, but if Sony's market research showed that people would refuse to pay more than $300-400 for a PS5, that's the price they'd sell it for.

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