General inflation doesn’t quite translate directly in all cases and is just a reference. In video games, costs have increased, but revenues have increased primarily through micro transactions and a growing market/sales. There’s virtually no marginal cost to produce additional units with software, so the revenues become a balance of price, demand, and supply (for hardware). They are expecting that the price increase won’t result in a significant drop in demand so that revenue increases. If they’re wrong, this will be a huge business mistake. If enough people purchase anyway, like you, then they’ll increase revenues and this will be considered a great business decision
Yeah, I have rejected increased cost games for this very reason. But Nintendo is one of the few companies I believe would do it to cover their costs instead of just preying upon general apathy towards inflation since covid to jack up profit. They are too rich for my blood at the time, but if I had the income to splurge this would be one of a vanishingly small number of places I would be willing to put up with it.
After coming off the incredibly successful Switch generation and Mario Kart 8 being essentially a decade old game that’s sold over 70 million copies, I just don’t believe that this is a decision driven by absolute necessity. I’d have begrudgingly accepted the standard PS5 prices of $70 games and $10 upgrades which I already thought were usually overpriced, but raising another $10 seems ridiculous. I’m thinking I’ll pass at least for a few years
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General inflation doesn’t quite translate directly in all cases and is just a reference. In video games, costs have increased, but revenues have increased primarily through micro transactions and a growing market/sales. There’s virtually no marginal cost to produce additional units with software, so the revenues become a balance of price, demand, and supply (for hardware). They are expecting that the price increase won’t result in a significant drop in demand so that revenue increases. If they’re wrong, this will be a huge business mistake. If enough people purchase anyway, like you, then they’ll increase revenues and this will be considered a great business decision
Yeah, I have rejected increased cost games for this very reason. But Nintendo is one of the few companies I believe would do it to cover their costs instead of just preying upon general apathy towards inflation since covid to jack up profit. They are too rich for my blood at the time, but if I had the income to splurge this would be one of a vanishingly small number of places I would be willing to put up with it.
After coming off the incredibly successful Switch generation and Mario Kart 8 being essentially a decade old game that’s sold over 70 million copies, I just don’t believe that this is a decision driven by absolute necessity. I’d have begrudgingly accepted the standard PS5 prices of $70 games and $10 upgrades which I already thought were usually overpriced, but raising another $10 seems ridiculous. I’m thinking I’ll pass at least for a few years