Kotick is the first corporate CEO to come out and publicly state that he intends to raise video game prices, though they're all at it with pre-order prices for Xbox 360 titles weighing in at an average of $10 more than the current crop. Of course those of us in the UK with our magical 1:1 conversion rate to dollars will wind up paying £10 more
Many presume that this hike is simply the first stage in next-gen console rollouts, as prices for launch titles of consoles have tended to be pricey in the past. However these price changes are here to stay. "We've said we're to going sell those products at higher price points until ... the market forces us to sell them at lower price points, which we don't think is likely," Kotick said in a presentation at the Banc of America conference in San Francisco on Monday.
"We don't really think that there's a lot of price sensitivity on the part of the consumer, if you're delivering value," he said. Of course by delivering value our good man at Activision could be talking more Barbie Rips You Off Again moreso than Half-Life 3.
Admittedly margins are becoming very tight, particularly with the traditional dry period that accompanies the expense of moving to a new console platform. We've not seen the price of games go up too dramatically over the last few years, however one still has to be cautious lest we wind up paying $50 for every run of the mill title and $70 for the truly decent games.
I won't bother converting that to sterling, as you and I my British chums know that we'll be on our magical 1:1 currency conversion rate µ
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