Elastic PC game prices are proof games cost too much
December 22nd, 2010
What does it mean when Steam, the world's largest PC gaming store, regularly slashes prices of its games by upwards of 75%, and in some cases 90%? I'll tell you.
The frequency of such discounts, including this week's massive Christmas sale -- with many top games going for less than $5 -- is proof that gamers are responding in kind. Steam wouldn't be offering these crazy discounts as often as they do if the people involved weren't making money.
In other words, video games are elastic. When elasticity occurs this often, and at mark-downs well below the $50-60 MSRP, it means gamers are no longer willing to pay full price. And since games cost less to make than Hollywood movies, it's not unreasonable to expect them to cost about the same as a movie ticket or at most the cost of a DVD.
What do you think: Is the rise of Steam with the help of regular discounts proof that games cost too much? Have you stopped paying full price for games, waiting instead until they go on sale to buy them?
Read more: PC gaming headlines





Comments
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Level 7
6397 ARP
Sorry for bad punctuation, in a rush, gotta go!
Level 2
166 ARP
too expensive, that is why I prefer buying the virtual copies because
I have no money...
The only games I have bought, without any discount, from my own money this year is Battlefield: Bad Company 2 in a pre-order price, which was 50 dollars.
After a couple of months Steam lowered the price to 30 dollars, and two
days ago there was a 60% discount means the game was sold for 10 dollars.
My friend was pissed, but I didn't really care, what's done is done.
Anyhoo, I had a lot more games that I wanted to buy in order to play them
online including Hot Pursuit, Mafia II and a couple of more games but
each copy valued at about 50 dollars, so its about 250 dollars a year most
of the time.
To sum it all up, the answer is Yes.
Level 2
139 ARP
I have to say if steam keeps this up, many more people are going to make the switch from consoles to PC gaming :D
Don't get me wrong, I love my PS3, Xbox360 and even my Wii but after seeing the sales on steam and what a PC can do,I ordered my Alienware Aurora :D
still waiting for it in the mail, can't wait to play l4d2 and crysis!
If it ain't broke, don't fix it.
Level 1
33 ARP
Knowledge is Power
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This suggests that the sales themselves are at least somewhat coordinated by the publishers, rather than the retailers deciding to deeply cut their profit margin on the sale.
That being said, the question posed by the article is a good one. Are video games too expensive? The market answers the question for us. If games were too expensive, people wouldn't buy enough of them and publishers would lower the price.
One of the main reasons games are move expensive than movies is because movies are generally 1.5-2 (sometimes 3 or more) hours of entertainment, while a video game lasts much longer. MUCH, MUCH longer if you account for online play.
In other words, video games will cost what they cost so long as people are willing to pay.
And while it's true that video games generally enjoy a much higher initial profit margin than movies, we should also keep in mind that movies have a second profit phase from DVD/Blu-Ray sales, and popular titles (think the Eclipse movies) can generate huge profits from product royalties, so the OVERALL profit of a movie can certainly be competitive to the most profitable games.
Of course, games still cost 1/5 to 1/10 the money to make...
I am the judge, the jury, and the Executioner!
Level 3
451 ARP
For newer games when they release and the elasticity thing. I think a new game is good anywhere from $40-50. $60 is just too much. Although I can't complain with anything lower than 40 =) lol and most of the time its good to hold off for a few months after a games release because most likely a sale will occur.
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My only gripe is that AAA titles are very overpriced (I live in Australia) and can be as much as 1.5-2x the price of the same game in the US store.
Level 1
82 ARP
I agree, i still keep The Elder Scrolls: Oblivion /Shivering Isles installed on my pc, even tho the last time i installed it, it was 2 years ago. Fully installed, patched + dlc the game is around maybe 7-8GB, mine is around 18GB. That's 10+ GB of downloadable content made by me and other players. The game doesnt even look close to the "vanilla" version, but still it gives the same/better experience. And have it in mind with the Constuction Set, Bethesda provided the players for free, you can basically change the entire game, even the main story to you liking. So thumbs up for games like that (talking about single player games). Any other single player game is not worth my money. It has to prove that its worth buying.
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too expensive.servicii seo
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