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[Mr Killemgood]

The current situation is directly analogous to the film industry.

For about 40 years, you have one and only one form of film-based entertainment: movies at movie theaters. Then TV came along, which had smaller, bite-sized content for users which was also a significantly lower cost due to advertisements.

Likewise, the market has been dominated by traditional disc-based and subscription-based media, and is now transitioning to other outlets that have cheaper and quicker forms of entertainment such as F2P, mobile games and the like.

The end result will likely be the same - television (F2P/Mobile) will be dominant, but will not extinguish traditional consoles. However, their content will be far more AAA-based as the smaller titles fall away to XBLA/PSN/DD and mobiles.

 

[Zoe]

oh please. pc games had high res assets back in the day and were still sold for 50. as soon as this gen hits, they decide they have to charge the extra 10 since the assets are now suddenly more expensive. to add insult to the injury, they start taking away content from the games to release as dlc. as if that wasn't enough, most games AREN'T EVEN HD IN THE CONSOLES

Back in the day? Ever heard of inflation?

Try it out.

 

[kswiston]

I think the only thing that Steam and the Apple IOS store prove is that full $60 retail price for all titles is an outdated model.

It's still pretty obvious that there is a much larger money making potential on consoles than there is on smart phones. I have no doubt that the last 4 Call of Duty games have out grossed the entire all-time top 100 paid games list on the Apple Store. Those four titles have brought in about $3 billion. Nintendo has had several games this generation in that range or better as well. Something like Angry Birds would have to sell a billion copies at $1 to equal what Call of Duty sells every year.

However, there are so many mid-range games that would have been much more profitable at $30-40 retail, or even as $20 DD titles (if the XBLA and PSN crowd wouldn't take a hissy fit whenever something is priced over $15). Plenty of smaller pub release their game on Steam, Gamersgate, etc for $20-40 at launch and seem to do well. Consoles need that as well. There have been a ton of smaller games that I have been interested in, but ultimately skipped because I didn't want to pay $60.

 

[Kintaro]

Way to miss the point.

I didn't miss the point at all actually. I was being sarcastic (halfway).

Really doesn't sound like he has any confidence in his product though. Coming on the heels of saying Bulletstorm didn't make any money and "maybe we should have made more Unreal games...hurrrr" I shouldn't be too surprised.

 

[MightyKAC]

I'm gonna bookmark this thread for reference when Epic boasts record sales figures for Gears 3.

 

[Mr.Squirrel]

I don't know if I can attribute it to smart phone gaming, but lately, I'm much less likely to buy a game at full price than I was a couple of years ago.

To me it has nothing to do with smartphone games and everything to do with the games being awful.

 

[M3d10n]

They should be worried, but people expecting games like Gears 3 to be released primarily on smartphone platforms when PowerVR6 drops clearly missed the news that the smartphone market is migrating from $1-$3 games to microtransaction-based games, which now represent 60% of the total app revenue.

Epic expected the smartphone market to "move up the river" causing the birth of a viable $10-$20 market segment, but what is happening is the exact opposite.

Personally, I have little desire to play "freemium" games. With very few exceptions, their cynical attempts at making me part with my money quickly wear my relationship with the game and prevent any kind of immersion to settle in. The experience is secondary to its ulterior motives, and it often shows.

 

[Zoramon089]

Nintendo don't really need to change because people will still buy their software and have done so even during the supposed "lean" years with the N64 and GC. What will concern Nintendo are shareholders demanding positive results. I wouldn't be surprised if in another 5-10 years time Nintendo will either go full tablet ala Wii U style with controls on the tablet itself, or they will go full broke with handhelds.

Over Shiggy's dead body. I don't envision this at all. Either scenarios

 

[Shambles]

People still pay $60 for a game? I don't even remember the last time I was that stupid

Spoiler

about buying a game

 

[SmokyDave]

I'm gonna bookmark this thread for reference when Epic boasts record sales figures for Gears 3.

I'll bump it again when Gears 4 gets an iOS version with exclusive content.

 

[M3d10n]

I'll bump it again when Gears 4 gets an iOS version with exclusive content.

And to play all that content you need to shell $1000 in microtransactions.

 

[Lonely1]

And to play all that content you need to shell $1000 in microtransactions.

Will it even fit in a 16GB iPad?

 

[Stumpokapow]

Back in the day? Ever heard of inflation?

Try it out.

Inflation refers to CPI inflation, it does not impact all goods equally. Some goods lower in dollar price over time, some goods increase in dollar price over time but less than inflation, some goods increase in dollar price over time but more than inflation.

For example, a 1990 movie ticket averaged $4.23. A 2011 movie ticket assuming a buying power inflation calculator like what you're using would be $7.31, and yet the actual price of a 2011 movie ticket averages $7.86. Higher price inflation than CPI inflation.

Gasoline in the US was $1.19 a gallon (average across states, source: Department of Energy). So Gas must be $2.06 a gallon today, right? No? Higher price inflation than CPI inflation.

Chromium cost $3.70 a pound in 1990 (down from $3.90 a pound in 1980 despite inflation). So it should cost $6.39 a pound today. Wait, it costs $1.19 a pound? What the fuck? Price deflation.

You can't just emptily invoke "inflation" as an explanation for a particular good's price changing--especially not when the good itself has changed over time. A 2011 video game isn't a 1990 video game. Those costs to make a game in 2011 aren't what they were in 1990. The costs of manufacturing and shipping a game in 2011 aren't what they were in 1990. The 2011 video game market isn't the 1990 video game market. The number of buyers and what they buy in 2011 aren't the number of buyers and what they bought in 1990. The way other entertainment markets competed with video games in 2011 isn't the same way they did in 1990.

Prices do not need to rise, and if they do rise they do not need to rise at a particular speed and certainly not anything resembling the exact CPI PPP inflation rate.

 

[lilltias]

It's good that these games comes along and put a little perspective to the fucked up 60$ pricetag on current gen console games.

 

[LyleLanley]

Will it even fit in a 16GB iPad?

The whole game will be streamed via iCloud.

 

[Neverfade]

$0.99 Gears 3. Imagine the sales numbers. Solved!

 

[Sammy Samusu]

Iwata said the same thing at GDC and people went crazy.

Apple better stick to iTunes and leave the gaming industry.

 

[Wallach]

Iwata said the same thing at GDC and people went crazy.

Apple better stick to iTunes and leave the gaming industry.

I don't see Apple changing course anytime soon.

 

[LyleLanley]

Apple better stick to iTunes and leave the gaming industry.

Why would they do that?

 

[Barack Lesnar]

All of us should be worried about this as well. I figure we've got maybe two gens left of awesome, high-budget AAA gaming. I also wouldn't be surprised if this next gen is the last. These trends can't be ignored.

Only a new technology could alter his prediction... like holograms or virtual reality glasses/goggles, something insane like that.

 

[Lonely1]

$0.99 Gears 3. Imagine the sales numbers. Solved!

If it sells as good as Angry Birds was downloaded, it would still generate significantly less revenue than Gear at $60 with a moderate 5 million shipping number.

 

[SMT]

I pretty sure with the rise of the ''casual gamer'', we could see some damage, but I don't know to what extent, to be completely honest.

My cousins (girls) love their games, but the only ''gaming'' they do is on their Iphones.
I don't know what to make of it, but they're always on the go, and it seems this apple tech is on of the gimmicks on the handheld gaming market.

They don't buy the $10 games, just the simple ones to give them a rush of entertainment while they're on the train home or to work.

I think this type of philosophy applies to some, if not, most professionals on the go who just need a pass-time and a phone/mp3 player.

Sony noticed this, which is why they are attempting to make an all in one.

 

[SmokyDave]

Will it even fit in a 16GB iPad?

Well they get by with last-gen media now and that only holds what, 7-9GB?

I'm sure they'd manage.

$0.99 Gears 3. Imagine the sales numbers. Solved!

Infinity Blade launched at $5.99, I believe.

 

[rpg_poser]

It's good that these games comes along and put a little perspective to the fucked up 60$ pricetag on current gen console games.

I know it's been said before, so I apologize in advance to everyone who has heard or experienced it...
I seem to remember brand new AAA SNES releases being $70.00. I think I paid $72.00 for US FFII right after it was released.
I think the plethora of games/devices/ports combined with today's economy has people questioning the $60.00 game.

 

[Lonely1]

Well they get by with last-gen media now and that only holds what, 7-9GB?

You can't reasonably expect people to have 7-9GB of free space for a single app. Not to count the 8GB sku's of iOS devices.

 

[Guts Of Thor]

Just curious, how would you guys feel if $40 was full price instead of $60 on everything, not just Capcom expansion packs?

Would you be more likely to buy new at release date, and take risks with new IP's?

If priced at $40 I would buy a hell of a lot more games day one.

A mobile future? No Thanks.

I'll keep buying Retail titles.

You and me both. Sounds like a shitty future.

 

[SmokyDave]

You can't reasonably expect people to have 7-9GB of free space for a single app. Not to count the 8GB sku's of iOS devices.

I don't, I was being a bellend. I expect compression to deal with the issue effectively as well as the natural rise in bandwidth and storage capacity.

At the moment, the biggest apps top out at 1.5-2GB. Rage HD was 1.2GB and I think IB comes in at just under 1GB. They'll get bigger, but you won't be downloading 10GB apps anytime soon.

 

[Lonely1]

I don't, I was being a bellend. I expect compression to deal with the issue effectively as well as the natural rise in bandwidth and storage capacity.

At the moment, the biggest apps top out at 1.5-2GB. Rage HD was 1.2GB and I think IB comes in at just under 1GB. They'll get bigger, but you won't be downloading 10GB apps anytime soon.

Many(most?) 360 games are already compressed. Maybe I'm wrong, but IB is around 300MB. But yes, 1.2GB for a 30 minute game like Mutant Bash HD should highlight the limited storage woes.

 

[Philthy]

Steam is proving that $5 games do well. You don't have to price your games $60 anymore. We've been seeing this for the past few years now, and they've had plenty of time to adapt. Many companies have even made the transition of offering their games for $5 instead of $20 to maximize sales, and it's been paying off.

Those who don't adapt will be left behind.

 

[M3d10n]

Will it even fit in a 16GB iPad?

You silly, all DLC will be already included in the initial download. Also, don't underestimate the power of palette-swapping.

 

[BlazingDarkness]

I will never settle for 1 dollar mobile games, it's just not going to happen.

 

[Meier]

For me personally, they don't affect my console/handheld purchasing but rather my iPhone purchasing. Anything over a buck is a no-go basically.. maybe $2 at most.

 

[cuyahoga]

Wait until they find out that Dudebro is actually free.

 

[Ulchie]

This sounds as stupid as 'Really? Consoles can do things other than play games now?'.

Just so you know.

Your implication is either I'm out of touch with what cell phones can do now, or that they can evolve and get better.

The limitations I'm talking about are with the control schemes and the screen itself. AKA, they're not going to be able to improve upon the controls, at least using touch based devices, enough for it to be practical and fluid enough to play a game like COD. It's not going to get better in the future. Also, I'm not out of touch, and those are still the best games on the phones.

So no.

I don't, I was being a bellend. I expect compression to deal with the issue effectively as well as the natural rise in bandwidth and storage capacity.

At the moment, the biggest apps top out at 1.5-2GB. Rage HD was 1.2GB and I think IB comes in at just under 1GB. They'll get bigger, but you won't be downloading 10GB apps anytime soon.

This. Screen size also limits the resolution they effectively need, meaning they're not going to need really huge textures cause low res will look fine on phones.

 

[Ulchie]

edit; double post

 

[Dark Octave]

If priced at $40 I would buy a hell of a lot more games day one.

Until you get used to that price and demand that they be even cheaper.

 

[LQX]

For me personally, they don't affect my console/handheld purchasing but rather my iPhone purchasing. Anything over a buck is a no-go basically.. maybe $2 at most.

Same here. If anything cheap $1 apps, many of which go free have soured me on buying anything over $1 no matter how much fanfare and praise it gets. Infinity Blade dropped to like $2.99 and I still refused to get it, $1, free or bust.

--
Also, I cant believe anyone on NeoGaf would be for a future where 99 cents apps like what they get on there iPhone would take over to the point they want dedicated Apple console as if to teach the big three a lesson.

 

[DjangoReinhardt]

Any company dependent on the structure of the console market should be worried. The number of free hours in a day hasn't increased for consumers since the console market was born, but the number of cheaper alternative entertainment options has exploded.

 

[Incendiary]

I guess I'm in the minority, because I don't really care about app store games at all. I have like...three games on my iPod and I only play them while I'm sitting in the bathroom at work. Most apps are bite-size mini-games that don't really hold my interest. In terms of actual story games, even ones that I tried (Zenonia in particular) they just didn't grab me. The touchscreen model of playing is only good for certain games.

I can see why the family market will embrace these types of games. My little cousins play Angry Birds for hours on their parents' phones, and that's a lot cheaper than a $60 360 game. There will always be a market for mobile games, but I don't think the mobile market and the console market intersect nearly as much as publishers like to believe.

 

[Derrick01]

these app stores can't even provide me games that I deem worthy enough of playing when compared to normal handhelds. How the hell are they going to match full retail games? (hint: they won't).

Though society keeps getting more and more obsessed with their dumb phones and cheap time wasters, who knows what will happen. That's one hell of a dark future though...were it to happen.

 

[Open Source]

XBLA/PSN games are much more obvious competition, since they are on the same platforms.

 

[Steve Youngblood]

but I don't think the mobile market and the console market intersect nearly as much as publishers like to believe.

Does it ever happen? Because, if it does, then there's cause for alarm. I'm just throwing numbers out, but if 10% of the potential market for (insert next $50 million AAA shooter) is finding themselves more and more content to spend their free time gaming on their smart phone, then it's still alarming. And there doesn't have to even be a drop in the market. If potential new customers are content in playing games on their iPhone as opposed to investing in dedicated, HD gaming, then that's trouble.

Now, I'm not a doom-and-gloom alarmist. I don't buy into the notion that consoles are about to die imminently (as in the next five years or so). However, that doesn't stop me from being critical of the existing business model for AAA console games.

 

[Anerythristic]

This is ludicrous, ridiculous and foolish.

Why does everything in gaming have to be all or nothing?

I can afford a $60.00 dollar game , I can afford a $60.00 game and a .99 game on the same day.

Why is this an issue? People that say they prefer .99 cent experiences on a phone to a console or PC were never your customers anyway, you didn't lose anybody.

Here is an idea, the next time some long defunct from the ashes company asks for a multi million dollar investment to make some nostalgic console game that you know will sell poorly tell them you are going to use that money to start a .99 cent game division instead.

Wow how novel IoS games / Console Games / PC games like the Wal Mart of the fu.cking gaming universe

Oh and control your damn budgets!! Bad business is killing consoles, not IOS games.

 

[disappeared]

I find it baffling how this industry pretends to have a gun pointed at its head, stating that they need to charge $60 for games. Everybody's fine complaining about it, but nobody's putting a foot forward and doing something to shift the tide.

Fuck it, launch Gears 3 for $29.99 and see what happens.

 

[Ulairi]

People who game on mobile phones view gaming differently than I do. I want to do everything I can to make sure that traditional gaming played with controllers, keyboards and mouses sticks around while mobile gaming goes away.

 

[Enco]

None of the many $1 games I have I've put a large amount of time in.

They're fun time wasters for a few minutes but that's all.

 

[LyleLanley]

People who game on mobile phones view gaming differently than I do. I want to do everything I can to make sure that traditional gaming played with controllers, keyboards and mouses sticks around while mobile gaming goes away.

This is just getting stupid...

 

[Steve Youngblood]

People who game on mobile phones view gaming differently than I do. I want to do everything I can to make sure that traditional gaming played with controllers, keyboards and mouses sticks around while mobile gaming goes away.

Let's pretend that you aren't you, though, for a second since what you have posted presents little in the way of relevance to what this thread is about. Instead, we'll say that you are an executive at a company that, up until now, has specialized in developing AAA budgeted video games for consoles/PC and cutting-edge engines that other companies will use to make similar titles. Do you think the growth in the mobile markets presents a potential problem for your core business? Keep in mind that marketing products towards your core demographic is becoming increasingly expensive with each passing year.

 

[The Faceless Master]

i think they will coexist just fine once console publishers realize every game can't be a $60 AAA blockbuster and start aiming at $40 and $30 price points for some games.

 

[Boombloxer]

I really don't see this happening.

I play videogames for escapism, and I much prefer the higher production values of the $60 games. I don't buy "apps" because they're disposable.

What publishers DO NEED to do is spread their $60 releases over the entire 12 months of the year instead of shitting 12 AAA games out within a 3 month period.

It's not even that so much as the $60 games need to be worth $60. How many games can you look back on and say "That was worth full price", I feel that some games would sell better if they weren't priced-matched with something else that's high profile.

The publishers that have a mix of content from free to $60 will win in the long run.