Throughout Take-Two Interactive’s latest earnings name with traders, CEO Strauss Zelnick was requested about different publishers promoting AAA video games at a reduced value shortly after launch. His firm has been one of many many to begin charging $70 for video games, and at the least based on him, he hasn’t seen any “pushback” on the brand new value level.
On Could 17, Take-Two Interactive—the writer behind video games like NBA 2K, GTA V, Borderlands, and BioShock—launched its 2022 earnings report alongside a press launch that appeared to trace at GTA VI-levels of success coming within the subsequent 12 months. As a part of this course of, the corporate additionally carried out a name with traders, who requested questions on Take-Two’s plans and previous efficiency. It was right here that one individual introduced up AAA recreation costs.
As noticed by VGC, through the name an analyst identified that another, unnamed, publishers had began offering reductions on new AAA video games “inside days and weeks” of launch. The dialog round recreation costs has been effervescent for some time now as extra publishers (together with Take-Two Interactive) be a part of the $70 recreation membership, together with Nintendo with The Legend of Zelda: Tears of the Kingdom. However Zelnick claimed that customers don’t actually thoughts.
“We’re not seeing a pushback on frontline value,” Zelnick mentioned. “What we’re seeing is shoppers are in search of to restrict their spending by going both to the stuff they actually, actually care about, blockbusters, or to worth, and typically it might be each. And the excellent news is, we’ve got a bunch of blockbusters and we’ve got a beautiful catalog.”
The rise of $70 video games
Mainly, Zelnick believes that players are simply shopping for fewer video games and specializing in getting a few massive, costly $70 blockbuster titles or are keen to select up older or smaller video games that price much less. Because the online game trade continues to wrestle with layoffs and massive video games failing to promote properly, it appears odd that Zelnick is okay with folks being unable to afford extra video games and as an alternative having to “restrict their spending.” However I’m not a giant wealthy CEO, so what do I do know?
The truth is that whereas players are undoubtedly vocally pushing again on $70 video games—Zelnick ought to take a look at the feedback on actually any story about these dear titles—the truth is that publishers are going to maneuver ahead anyway. There’s an excessive amount of cash to be made, and as Tears of the Kingdom’s huge sale numbers have proven, a $70 recreation can promote like hotcakes if it’s ok.
And as Microsoft, Sega, and different firms affirm future releases will price $10 greater than the outdated $60 value level, it appears clear that, pushback or not, we’re really within the period of $70 video games.
