
How long can blockbuster console games come in at $100+ when these days, ten to twenty bucks gets you a handful of phone or tablet games? And you get almost as much enjoyment, especially in terms of play time. Kotaku editor, Mark Serrels, and I go toe-to-toe. What’s your stance?
DANNY: Sure, the biggest games take years to make and need to recoup massive budgets, but so do movies, and I can pick those up for $15 at the cinema, and $30 for the Blu-ray. Even that still leaves me with over $60 change compared to a new release game. Seriously man, how long can blockbuster console games fend off casual apps?
MARK: Forever, I hope. The survival of the games I know and love depends on it. Being perfectly honest, I think we’re more likely to see some sort of balancing in the coming years. Yes, I think that AAA video games with mega budgets and billions of man hours behind them will end costing slightly less, but I also believe we’ll see an increase in the cost of mobile gaming.
The fact is that a team of one could, at the moment, create the next Angry Birds or Doodle Jump – but as mobile technology increases rapidly the cost of production is going to increase – bigger teams, bigger budgets. People are going to start expecting more from mobile gaming, and they’ll have to pay for it.
It’s just the nature of the beast. When I was a kid I could buy budget Spectrum games for less than three Aussie dollars – because these games were created by kids in their bedrooms. As the tech increased, so did the cost of production, and the price of games.
I expect the same process to occur in the mobile gaming realm.
DANNY: That’s a fair point, but I’m not so sure that history will repeat itself. These days we have a new element in the mix: Apple. Love him or loathe him, Jobs totally shook shit up by strongarming record labels into US99 cent songs. iTunes song price tiers have expanded over time (which would follow your argument that game prices will go up), but the cheap songs remain the hook. And increasingly, cheap casual games are the new iTunes crack.
Even though Australia still gets bent over a barrel on iTunes music, Australian App Store prices (including games) are now much more in line with the US. It’s clear that Apple is in a price war for our casual free time. All that said — I will concede this: five years from now app prices will be roughly what they are now, but it’s likely we’ll be forking out extra to expanded maps or features. Downloadable content — or the Jetstar model — that’s certainly where EA’s creative director believes we’re headed. And like Apple, EA is another company with too much influence for their own good.
MARK: Music is a far more structured experience, as an entertainment proposition you get this: 3-6 minute song. That proposition is consistent. There’s very little variety.
Take a look at games. Games go from Doodle Jump to Red Dead Redemption, and everything in between. The difference between music and games in that regard is epic in scale.
Look at Blu-rays for example – it costs me roughly $60 to buy Mad Men on Blu-ray at JB Hifi, but there are still a handful of movies I can pick up for $15. Games are similar – you get what you pay for, and I expect that will continue. On the whole I expect to pay a little less for games – but I will not have a problem paying more for a proper AAA 10-15 hour experience.

DANNY: Yeah, you’ve hit the nail on the head. The more epic and immersive a game is, the more hours of game time you get, the more you can justify paying a premium. And consoles by nature are more interactive with motion controls, richer graphics, and big screen 3D.
That all bodes well for AAA titles until you look at big games like Homefront (still $90-ish) that take four hours to get through. In terms of game time, it’s titles like this that mobile games will soon be nipping at the heels of, especially once iOS or Android games hit the TV via the next Apple TV, direct connection or some other unreleased device. More: Gizmodo Vs Kotaku – TVs Are the Consoles Of The Future.
AAA console games need to come down in price (outside of the fact that Australians should be, but aren’t benefiting from the exchange rate). Retail figures released in Feb show a 16 per cent drop year on year, reversing years of record sales. Until the next-gen consoles blow our minds with better graphics, improved 3D or motion controls — hell, maybe even head tracking — then casual mobile games will continue to grow. Yes, they’re like reading a magazine instead of an awesome novel, but just look what e-readers have done to those.
MARK: Retail figures going down is testament to the state of retail, not the state of video games themselves. Local retail is scrambling to adapt to digital distribution and the rapidly growing imports market, and that is the issue here.
I really liked what Cliff Blezinski of Gears of War fame had to say – he claimed that the middle class game is dead. That middle step of mediocrity between flash/mobile/Indie games and big budget titles is in decline and there’s really no place for them in today’s market. It’s Assassin’s Creed or bust, Halo: Reach or reach for the door.
I agree with this, and I think that’s the true casualty here. I think the real problem for gaming is the fact that investment in innovative AAA experiences will grind to a halt. Unless you’re a proven developer like Irrational Games or Rockstar, it’s going to be difficult to get something like, say Child of Eden, green lit.



















Anonymouse
Friday, July 22, 2011 at 12:05 PM“That middle step of mediocrity between flash/mobile/Indie games and big budget titles is in decline and there’s really no place for them in today’s market. It’s Assassin’s Creed or bust, Halo: Reach or reach for the door.”
That statement is very true. No more Superman 64′s. But, given if a game is going to survive financially only if it is a big hit, does that not lower the chances of a new IP hitting the market?
Penmonicus
Friday, July 22, 2011 at 1:10 PMI’d love to see some discussion of the DS thrown in here.
The DS has had a number of great games in its lifecycle that wouldn’t normally be counted amongst the “big budget titles” discussed, but can still garner 9+/10 ratings. What’s going to happen to them?
Rod
Friday, July 22, 2011 at 1:48 PMFar more important question: which ed is Lone Star and which ed is Dark Helmet?
Anon
Saturday, July 23, 2011 at 11:59 AMAs it stands prices for games on traditional systems such as pc, xbox, and ps3 are to expensive. Being a PC gamer I use discount CD key outlets online to pay 20 dollars for new release titles and then use EB download manager or steam to get the data.
plang
Tuesday, July 26, 2011 at 9:11 AMI agree that we’ll see some big pricing shifts in the near future. I would add a few points to this that I think factor into the equation:
1. Freemium. iOS development budgets may rise with the strength of the tech, but the platform has a business model that branches into areas the game industry has not experienced before. What if I can download Red Dead Redemption on my iPhone 6 for free, it plays straight onto the tv with some kind of wireless controller, and is more or less the real deal. I like it so I buy a chapter for $5.99. It’s a good game – maybe I buy another chapter afterwards, or maybe something else comes along and I play that instead. Like most people, my attention-span is a frail beast.
In that instance, the situation could be very bad for a bad game, or very good for a good game. It might mean double the sales numbers at half the amount (netting equal), and thus leading the competition via this proven-effective lowered barrier to entry.
2. Development costs only scale with the complexity of tech when the production tools stay the same. But they won’t. We’re on the verge of an explosion of amazing tools – we have 3D photo construction, homebrew 3D scanning & mocap via the kinect SDK – literally the tip of the iceberg of what I believe will be a boom of fantastic and affordable indie tools, we have a massive expansion occurring in the game-development academic scene too. With all of that, you get an ever-increasing potential for brilliant material to emerge from very humble beginnings.
3. The big three can already see the writing on the wall. You’ve got Wiiware, Playstation “minis”, xna->xbla, etc… The preparations have been made for all the usual suspects to be contenders in the chi and cheerful space. It’s seems reasonable to me that to some degree, the lines will blur as today’s (tomorrow’s?) sweet spot is re-found to get the biggest slice of the pie.
4. Saying that only mediocre $60-$100 games will suffer is unrealistic. Mediocrity is subjective and often only realised well after the first few weeks of sales have run their course. The more people are disappointed en mass with *MOST top-tier console game prices, the more subconscious animosity there’ll for that price tag under any circumstances.
5. It only takes one of the powers that be to make the push – if it works, and I believe to large degree it would, the others will have to fall in line.
Nick
Thursday, July 28, 2011 at 4:29 PMCompare the number of people that go to the movies versus the number of people that buy video games and you can clearly see why it’s like comparing apples and oranges – it’s an unfair comparison to make.
Console games (and quite frankly anything) will cost about as much as the market is willing to pay, and studios will produce games with budgets that they can afford to turn a sufficient profit on it. If that does mean the end of the middle tier game, then good riddance.
It won’t mean the end of innovative investment though. Studios need to generate new ideas to keep the market fresh enough to make money. Sure some of the wilder ideas may never see the light of day, but maybe they will have their life in the smaller independent studios instead.
Ultimately I don’t think apps will force cheaper games. It’s a different audience that buys one or the other, with of course a bit of an overlap.