PlayStation 5: Take-Two CEO Comments on Next-Gen Game Prices

The next-gen PlayStation 5 and Xbox Series X will take gaming to the next level. These consoles will be a step into the future in terms of graphics, performance, and overall gameplay experience. Better technology is often accompanied by a higher cost, which is usually justified. Something similar is happening with the games being developed for these consoles and it is somewhat justified.

Recently, the upcoming game NBA 2K21 was in the news for being priced at $70 dollars. Take-Two Interactive CEO, Strauss Zelnick, commented on the same. As reported by gamesindustry.biz, Zelnick said,

“There hasn’t been a price increase for frontline titles for a really long time, despite the fact that it costs a great deal more to make those titles. And we think with the value we offer consumers…and the kind of experience you can really only have on these next-generation consoles, that the price is justified. But it’s easy to say that when you’re delivering extraordinary quality, and that’s what our company prides itself on doing.”

Shawn Layden on next-gen prices

This is not the first time we have heard something like this. Former PlayStation Executive Shawn Layden had also expressed similar thoughts on this, at an event.

“It’s been $59.99 since I started in this business, but the cost of games have gone up ten times. If you don’t have elasticity on the price-point, but you have huge volatility on the cost line, the model becomes more difficult. I think this generation is going to see those two imperatives collide.”

This argument made by Layden makes a lot of sense. The Xbox One and PlayStation 5 consoles came out 7 years ago. The prices of the games have been the same for these consoles for the past 7 years. The cost of making these games has naturally gone up over the years. The GTA 5 title cost around $265 million to make and that speaks for itself.

So, this $10 price increase is hardly anything compared to the increase in production cost.

Zelnick on Ubisoft’s decision on game prices for PlayStation 5 and Xbox Series x

Zelnick was also asked about Ubisoft’s decision to stick with the current-gen prices for next-gen games. He replied,

“Obviously, we don’t speak for the industry and the industry naturally does not coordinate on these matters, to say the very least. The pricing has to reflect the quality of the experience, and we aim to provide the best experiences in the business. And from our point of view, it’s an extremely modest price change given that prices haven’t changed for a very long time.”

Take-Two seems to be determined in maintaining the $10 price hike for their upcoming games. Let’s see if other major publishers/developers follow suit and hike up their prices for the upcoming games.

Sources: Gamesindustry.biz