> If triple A gaming has taught me anything, no, the prices are not lowered in compensation for the additional revenue stream.
Inflation-adjusted, on average, AAA games have slowly decreased in retail price over the years. At the same time, they have become much more expensive to produce. Technology have improved, HD graphics, storage and computing power is now cheap, but creative work is as expensive as ever, if not more. And someone has to make all these assets and feature-film level animation that newer hardware supports and that players now expect from AAA games.
That increase in production costs compared to a relative decrease in retail prices explain a lot of things regarding the AAA game industry: in-game purchases, a general lack of originality (originality is a gamble, and with $100M+ games, investors want guaranteed returns), few consoles exclusives (producers want the largest market possible), lower pay than in other industries,...
This argument gets trotted out every time, and it's not only old, it's clearly wrong.
Why is it wrong? Because AAA games are absurdly profitable, even before microtransactions are brought into play. AAA publishers and studios are making billions, with a 'B', of dollars of profit. That's not the sign of a struggling market that's weighed down by inflation and rising costs of production. That's a sign of an exceptionally healthy industry.
Remember, cost only sets the floor of a product's price. And with a near zero duplication cost, those up-front investments are quickly paid back with no practical upper limit to the sales potential.
For example, CDPR's Cyberpunk 2077 cost around $316M (including marketing). It presold, as reported on wikipedia, 8m copies. That means they made their investment back before the game had even released, plus a minimum of $20 profit per each of those 8m pre-orders (remember, $60 is the lowest price paid in a pre-order). And every post-launch sale is pretty much pure profit, thanks to that nearly-free cost of making copies.
Now then, CP2077 had issues which probably ate into the company's profits post-launch... but that initial investment, the one you've pointed out? Paid for the day the game released.
Inflation-adjusted, on average, AAA games have slowly decreased in retail price over the years. At the same time, they have become much more expensive to produce. Technology have improved, HD graphics, storage and computing power is now cheap, but creative work is as expensive as ever, if not more. And someone has to make all these assets and feature-film level animation that newer hardware supports and that players now expect from AAA games.
That increase in production costs compared to a relative decrease in retail prices explain a lot of things regarding the AAA game industry: in-game purchases, a general lack of originality (originality is a gamble, and with $100M+ games, investors want guaranteed returns), few consoles exclusives (producers want the largest market possible), lower pay than in other industries,...