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Take-Two Interactive CEO Defends Next Generation Price Hike



The next generation of game consoles are on the way, but the PlayStation 5 and Xbox Series X / S may not only bring better graphics and more advanced technology. The new consoles could also usher in a higher price tag for games themselves, possibly removing the $ 60 norm that has been in place since 2005.

This isn’t necessarily a problem, according to Strauss Zelnick, CEO of Take-Two Interactive, who defended the idea of ​​a next-generation price hike in an interview with protocol.

“The bottom line is we haven’t seen a front-line price increase in nearly 15 years, and production costs have increased by 200 to 300 percent. But more in a nutshell, since nobody really cares what your production costs are, what consumers can do with the product has fundamentally changed, ”said Zelnick.

“We̵

7;re shipping a much, much bigger game for $ 60 or $ 70 than we did 10 years ago for $ 60. The ability to spend money online is completely optional and not a free title. It’s a complete, incredibly robust experience, even if you haven’t spent a penny after your first purchase. “

Take-Two was one of the first to announce it would charge more for its next generation titles. The company announced this in July NBA 2K21 The X / S consoles of the PlayStation 5 and Xbox series cost $ 70, and the current generation Xbox One and PlayStation 4 are $ 60.

The news faced significant setbacks from a community of customers who had grown accustomed to the $ 60 price tag over the past decade and a half. Zelnick later noted that Take-Two would “announce pricing on a per-title basis,” but repeated the same point: Games now cost far more than they did when the $ 60 price point was introduced.

Take-Two has already begun to show what some of these considerations could look like from title to title. The company plans to offer a free, standalone version of its popular (and lucrative) version. Grand Theft Auto Online Game mode for PlayStation 5 customers next year.

Other companies like Ubisoft have decided to look into the matter. They promise free upgrades and no price increase for cross-generational games that were released in the fall – without committing to avoid further increases, as only next-generation titles are produced.

Zelnick is not wrong: as Polygon notes that the cost of games has remained almost bizarrely unchanged, although almost every other segment of the economy (both entertainment and otherwise) has seen its prices rise over time. Adjusted for inflation, a $ 60 game in 2005 would cost over $ 80 in 2020 – meaning that even a jump in price of $ 70 is comparatively cheaper.

With the prospect of next generation games even bigger and more expensive to produce than today’s AAA titles, a world where the price of games is high is hard to imagine Not increase to make the development sustainable.


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