Pricing of Computer/Console Games

[Grisu]

I didn't know where to put this, but since it's more about the pricing/economic issues than about the games themselves I put it here instead of CT or All other games (and of course for the bigger audience )

One thing I keep noticing about Computer games is that PC games usually are at about $10.-- cheeper than their PS2 or XBox counterparts.

For example there's FIFA 07 at my local games store it costs:
For PC: CHF 79.--
For PS2: CHF 85.--
For XBOX. CHF 89.--

I have never been able to completely understand the reasoning behind that. Is it just because they can? Or is there some higher cost involved that they don't have with PC games?

I would imagine that should rather be the other way around if we're to follow the game industry's reasoning about piracy. After all, piracy certainly is a much bigger concern with PC games than it is with Consoles. Every idiot can download a PC game and install it illegally, while with consoles it supposedly takes quite some effort.

So what are your thoughts, ideas, explanations for this phenomenon?

 

[Wolfe Tone]

The only thing I can think of is that console manufacturers often sell their consoles at a loss and make the money back through games. PC game companies don't have this concern

 

[Yeeek]

Yes and the stupid pricing of video games in Europe just add more fuel to the idiocy.

A newly released game in the us for the Xbox 360 will cost 60 $ USD and the same game will cost 60 € in Europe. While it should cost only 45€...

What gives?

 

[warpus]

The only thing I can think of is that console manufacturers often sell their consoles at a loss and make the money back through games. PC game companies don't have this concern

That's exactly right. Microsoft, Sony, and to a lesser degree, Nintendo, lose a lot of money on the actual consoles they sell.

They make all their money selling games.. and since it's a bit harder to pirate console games, they can afford to charge a bit more for the games without distancing a significant portion of their customer base.

 

[Grisu]

The only thing I can think of is that console manufacturers often sell their consoles at a loss and make the money back through games. PC game companies don't have this concern

that would make sense with MS or Sony games, but the example I quoted is EA, so that shouldn't apply. Unless of course MS/Sony demand a licencing fee from EA to allow them to publish a game on their console in the first place.

Yes and the stupid pricing of video games in Europe just add more fuel to the idiocy.

A newly released game in the us for the Xbox 360 will cost 60 $ USD and the same game will cost 60 € in Europe. While it should cost only 45€...

What gives?

I think that's more a case of "let's try this, nobody will notice that the currency changed...." People have been doing this for decades, for example a german magazines used to be priced exctly the same in Francs here as they were in Marks in germany, ignoring the fact that the swiss franc was about 20% higher than the Mark

 

[Grisu]

and since it's a bit harder to pirate console games, they can afford to charge a bit more for the games without distancing a significant portion of their customer base.

But doesn't this utterly destroy the argument of the games industry (and on extension of the Music Industry) that games would be much cheaper if there were no pirates?

 

[skadistic]

Things cost what people will pay for them. If no one bout say FIFA 07 at 60 it wouldn't stay that high for long.

 

[Masquerouge]

But doesn't this utterly destroy the argument of the games industry (and on extension of the Music Industry) that games would be much cheaper if there were no pirates?

true!

What is also amazing is the different pricings across continents. Games are generally much more expensive in France than in the US - particularly Nintendo games for the handhelds.

I just did a quick search on Amazon. The game Fire Emblem for the DS is priced 38.99 euros on Amazon.fr
It is priced $19.99, down from $29.99, on Amazon.us

All prices are for a NEW game. Not used.

This means this game costs more than TWICE AS MUCH if you buy it in France - and the weird thing is, you can buy a game in the US and it will work perfectly on your French DS! (I know because I'm now an official purveyor of handheld games to my French friends...)

 

[Wolfe Tone]

that would make sense with MS or Sony games, but the example I quoted is EA, so that shouldn't apply. Unless of course MS/Sony demand a licencing fee from EA to allow them to publish a game on their console in the first place.

I think they do demand a licence fee. It certainly woudn't supprise me.

 

[Grisu]

Consoles dont take any effort, open newspapers, check the ads, take console to local pirate, install chip, buy 50 games for 20$, go home and play till you drop

I count that as effort: having a modchip installed, etc. The average user won't do this (especially since in many places there's no such thing as a local pirate), so I doubt that there's large scale piracy going on. Unlike with PC Games.

 

[El_Machinae]

I love purchasing loss-leaders.

 

[Chukchi Husky]

I have never been able to completely understand the reasoning behind that. Is it just because they can? Or is there some higher cost involved that they don't have with PC games?

Console makers lose money on selling the console, so they raise the price of the games to make up for it.

 

[nonconformist]

Console makers lose money on selling the console, so they raise the price of the games to make up for it.

If enough people buy MS consoles, and not games, MS go bust.

Sounds like a plan, Mac.

 

[Swedishguy]

"Everything is worth what it's purchaser would pay for it."

 

[Chukchi Husky]

If enough people buy MS consoles, and not games, MS go bust.

Microsoft never made a profit from the Xbox.

 

[Xanikk999]

Microsoft never made a profit from the Xbox.

Well they have tons of money to burn anyway.

 

[Macha]

In Ireland new games usually cost
1. PC games €50+
2. 360 games €70-€90
3 PS2 games €50-€60
4. Portable games €45
5. Wii Games €39.99

 

[Knight-Dragon]

Moderator Action: Moved to Other Games.

 

[Speedo]

The only thing I can think of is that console manufacturers often sell their consoles at a loss and make the money back through games. PC game companies don't have this concern

Exactly right. The game producers have to pay licensing fees to MS/Sony/Nintendo to be able to make games for their platforms, that's how they make money on the consoles - the hardware is sold at a loss.

 

[Rheinmetall]

"Everything is worth what it's purchaser would pay for it."

"He's not stupid who asks, it's he who pays."