Well, Videogames Cost $80 Now I Guess
Last week, Nintendo finally held its long-awaited Switch 2 live stream, which fully unveiled the system by showcasing its hardware, features, and launch lineup. There were Metroids, there were Donkey Kongs, and while a lot of the show’s runtime was dedicated to ports of games we can already play, there was just enough new material to fill out the hour-long event.
However, the biggest surprise was what was absent: anything around pricing. Likely conscious of a potentially negative reaction, Nintendo silently announced its console’s $449.99 price point in a written press release after the show. Needless to say, when this news finally hit, it was not received well. The chat feed on Nintendo’s subsequent streams was taken over by comments like “DROP THE PRICE.” Considering that the original Switch launched at $300 back in 2017, it was a steep increase from a company that’s typically marketed its systems as the much cheaper alternative to Sony and Microsoft’s more powerful hardware—for context, the PS5 and Xbox One X launched at $500. The Switch 2 undeniably costs a significant chunk of change, and given the current climate of economic uncertainty, it makes sense why so many are peeved.
However, on top of the Switch 2 pricing controversy, Nintendo also had another stealthy price hike, which will arguably have a bigger ripple effect on the game industry writ large. They’re charging $80 for certain games now. We also found this out in a roundabout way, in this case, via Mario Kart World’s listing on Nintendo’s website. Even more flagrant is they also revealed that some Switch 1 games are being re-released on the new system for $80, including Kirby and The Forgotten Land, Super Mario Party Jamboree, and The Legend of Zelda: Tears of the Kingdom. You can upgrade for $10 if you already have the previous game, but this doesn’t excuse the fact that they plan on charging this hefty amount for re-releases, too. While the company has said that these price points will change on a game-by-game basis— the recently announced Donkey Kong Bananza will cost $70—we can probably assume many of their biggest titles, like the next mainline Legend of Zelda, will go for $80. As for why Nintendo upped Mario Kart World’s price, Nintendo’s Bill Trinen said in an interview with IGN, “I would say it’s less about the strategy of pricing Mario Kart World, it’s more just whenever we look at a given game, we just look at what is the experience, and what’s the content, and what’s the value?”
Over just a few years, the maximum generally charged for a game has jumped from $60 to $70 to potentially $80. After the Xbox 360 era brought this number from $50 to $60 in 2005, games maintained that soft cap until around 2020, when NBA2K21 charged $70. Since then, pricing has been sporadic, with some companies charging $70 for big-budget games while others still charge $60. And now, just a few years later, a new high-point has been set, which will likely be matched by at least a few publishers besides Nintendo.
Now, obviously, the existence of inflation means that game prices probably couldn’t have feasibly remained at $60 forever. In fact, $60 in 2005 had the same buying power as $97.10 does today, meaning that on paper, game prices haven’t kept close to matching the pace of inflation. If you look back further to the ‘70s and ‘80s, these numbers can be even more extreme, with a $40 Atari 2600 game being the equivalent of $208.34 today. On top of this, game budgets have ballooned in recent years, with releases like Insomniac’s Spider-Man 2 allegedly costing around $300 million, a three-times increase from the previous entry in the series, further straining the feasibility of old price points.
However, what these metrics don’t consider is that, at least in the US, wage growth has been largely stagnant over the last few decades. Meanwhile, the percentage of income that Americans spend on core costs like housing, healthcare, food, and education has soared, leaving less room for everything non-essential, like, you know, videogames. To put it into numbers, as Helaine Olen wrote in her book Pound Foolish: Exposing the Dark Side of the Personal Finance Industry, “housing, health care, and education cost the average family 75 percent of their discretionary income in the 2000s. The comparable figure in 1973: 50 percent.” That book was published over nine years ago, and since then, we’ve gone through a global pandemic and supply chain meltdown that inflated the cost of basic goods as wages have struggled to keep up.
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