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PS4 & Xbox 720 games to cost $70, says Pachter

Monday, 11 March 2013 13:19 GMT By Dave Cook

PS4 and Xbox 720 titles will cost $70 at launch. That’s the claim of Wedbush Morgan analyst Michael Pachter, who gave a lecture at the SXSW conference on Saturday.

Pachter’s discussion also saw him crown Xbox 720 as the winner of next-gen, before it has even been revealed. Check out why he said that here:

American game writer Geoff Keighly was live-tweeting from the event, and dropped this little nugget on his feed:

If true this would place next-gen games at ten dollars higher than they are currently, something that may come as a concern to those already disgruntled at the $60 benchmark. Meanwhile, PC games just seem to get cheaper and cheaper, thanks to Steam’s often-insane sales and the like.

What’s your take?

Thanks Gamespot.

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56 Comments

  1. Eregol

    Wouldn’t surprise me if it was the case, but c’mon…Pachter?

    #1 2 years ago
  2. Bashtee

    Didn’t Jack Tretton say, that he expects games to be no more than 60$? Nonetheless, 70 is way too much. This would kill Day-1 buys. At least for me.

    #2 2 years ago
  3. Optimaximal

    Someone needs to make a portmanteau word out of ‘Pacther’, ‘speculation’ and ‘relevance’…

    Wasn’t the ‘current’ generation software priced higher to offset the unprofitable hardware (along with the acknowledged license fees). I’m sure the Wii (which made a profit from very early on) was cheaper as a result.

    #3 2 years ago
  4. Beta

    Sick of seeing this man’s name. Aren’t there any other analysts we can here from? :P

    #4 2 years ago
  5. Erthazus

    My PC games cost 51$ and will cost as much on Steam (and i’m in Europe where console games cost 100$)

    If 70$ is the future I won’t buy console anymore and I don’t believe that they are going to cost 70$ unless Microsoft and industry want to FAIL Hard.
    I can see some serious shit happening in the Europe where games will start to cost for 110$ or 120$

    #5 2 years ago
  6. Samoan Spider

    Yeah, the current gen was heavily subsidised to help sell the units. The same may well be true next time so I’m not surprised by this.

    Edit: Doesn’t make it sensible and they need to reverse this course. They attracted ‘non gamer’ types with the previous generation. If they’re to sell the millions of units again, they need to appeal to people on a financial level. This is a time of austerity. Many households will forego a luxury they could afford 5-6 years ago.

    #6 2 years ago
  7. dex3108

    I don’t see why price need to go up. Most of developers already are making assets in high resolution and than they are lowering poly-count for game. Also there are really huge games today that cost 50-60$. Also making and porting games from platform to platform should be way easier with next-gen. Now why should price go up i really don’t understand.

    #7 2 years ago
  8. MadFingerz

    In my country PS3 games already cost €70 on most stores. But nowadays you only pay full-price if you really want to (or can’t buy cheaper for some reason). Thank goodness for online stores.

    #8 2 years ago
  9. DrDamn

    To even make a statement like that is a bit nonsensical. The trend is towards a vast swathe of pricing structures. It used to be all retail games were £50 and budget re-release titles were £20. NextGen systems will have flexible pricing from freemium up through cheap then XBLA/PSN on to premium XBLA/PSN and on to big retail releases and AAA. It makes no sense to say PS4/NextBox games will be $70.

    #9 2 years ago
  10. roadkill

    Lol you f**king losers! How can you pay more than 50 dollars for a game!? That’s so stupid.

    #10 2 years ago
  11. mojo

    so how is that different from today?
    breaking news: game prices stay like they are now.

    #11 2 years ago
  12. Dave Cook

    @11 games are typically $60.

    #12 2 years ago
  13. ps3fanboy

    one thing is for sure if this becomes true… first day buy days are over, it will be more like a 5 months or as long it takes until the price drop buy. no point at buying used if your not sure the mp is a total waste. because buying used then buying a online pass, only will crank up the price further… online buying can also be a option if the price is good like 40-50(no psn digital arse rentals only retail)

    #13 2 years ago
  14. Sylrissa

    In America they are, not many other places in the world.

    #14 2 years ago
  15. Dragon246

    As #9 said, its nonsensical. But for AAA titles, it may well happen.
    Just a fact, 60$ of 2005 means 68.70$ approx today (according to US gov labour dept.) , so 70$ make sense that way.
    But there are so many options now. I don’t buy day one generally and 5-30$ downloadable games are getting better. But increasing prices will surely deter customers.

    #15 2 years ago
  16. Hirmetrium

    @3: “Someone needs to make a portmanteau word out of ‘Pacther’, ‘speculation’ and ‘relevance’…”

    Patchulance. There. If Dave starts using that as a tag I will be happy.

    #16 2 years ago
  17. CyberMarco

    Fine with me. I actually am a patient gamer, I tend to buy complete/goty edition of games for like ~20€. I’m done spending 50-60€ for a video game, I just can’t see why should I.

    @Erth, where do you actually live in Europe that games cost ~100$? Do you mean 100$ after the conversion $/€?

    #17 2 years ago
  18. Erthazus

    “Do you mean 100$ after the conversion $/€?”

    Yes.

    #18 2 years ago
  19. Lahanas

    Can someone tell me why anything that this guy says is deemed newsworthy by so many sites, including VG247? He doesnt get almost anything right.

    #19 2 years ago
  20. Samoan Spider

    @20 Throw enough shit at the wall and some will stick

    #20 2 years ago
  21. mojo

    12 not im my world.
    the rrp of almost every game is 70€. i dont expect games to cost more than 70€ next gen.
    i anyway dont buy day one usually. Last game i bought day one was GoW3, next game i get day one is GoWA. Then i dobnt know. Propably the next GoW..

    #21 2 years ago
  22. Telepathic.Geometry

    A lot of games already cost $80 or $90 on console assuming that you buy them new, and buy the couple of bits of DLC to complete the package.

    I know we could argue about definitions, and look at the DLC as a separate entity, and maybe that’s the correct way to think of it, but I just don’t see it that way. I want the full experience, and to get it you usually have to pay easily $70+ new on console…

    Look at Asura’s Wrath, Castlevania: Lords of Shadow, Prince of Persia, Mass Effect 3, Dark Souls, Deus Ex: Human Revolution and probably Dead Space 3. I’m not having a go at the devs or even the publishers now, I’m just saying that for each of those games, the DLC in some way completes the original game, and that’s content that is very hard to leave on the table. There’s an argument there for saying that the original game was incomplete, and by buying the DLC and bumping the de facto price to circa $75, you’re getting the real thing. (By contrast, DLC like in Skyrim or Portal 2, Infamous 2 or Red Dead feels like proper DLC, an extra, and not something integral to the original game.)

    Anyway, what I’m trying (badly I suppose) to say is that in a certain sense, games are already a stealth $70+, and even if digital sales manage to mitigate some of the extra dev costs of the new hardware, I don’t see any reason why it would be cheaper. We’ll get more insidious DLC, micro-transactions and maybe have to pay for PSN as standard. One way or another, I think we’ll pay at least $70 a pop new on console…

    #22 2 years ago
  23. PC_PlayBoy

    Console gamers will still take it up the arse from Sony & MS. They never learn…

    #23 2 years ago
  24. Telepathic.Geometry

    Some people like it up the arse. Think about it… /deep

    #24 2 years ago
  25. NightCrawler1970

    Hmm it seems that “GAME-PASS” is included?, when used the gamer can buy at game-stop instead of $20,- like $30($10, gamepass)….

    SO…..

    GAMESTOP CAN MAKE MONEY AGAIN!!!!

    #25 2 years ago
  26. ps3fanboy

    @24

    you pc-elites have been taking it up the arse for years with the digital rental services like steam,uplay,origin,winlive always online drm crap. hopefully some of you waked up after the simcity scandal. i bought my last pc game in 2007 and got my ps3 in 2010.

    things have been good on the ps3 but i think ps4 will be my last gaming device, after all this cloud, digital and rental service talk. the future of gaming don’t looks promising and not something i want to spend my money on. good things don’t last forever but gaming have had a good run from 1980-2013(maybe 5-7 years more). i can’t justify paying 70 or more dollars foe each game on a rental only service in the cloud. it is like throwing the money in the toilet and flushing.

    #26 2 years ago
  27. Djoenz

    In the Netherlands I pay €50-60 for brand new games. I think it should stay that way. About dlc the only dlc I ever bought were COD map packs. Im happy to buy certain games full price day one like watchdogs and last of us.I dont buy tht many games like most nerds do.

    #27 2 years ago
  28. Telepathic.Geometry

    Taking it up the arse from Steam? You mean their anal of low low prices and convenience?

    #28 2 years ago
  29. OrbitMonkey

    Havn’t games been roughly the same price now for about 20 years? Seriously, every new gen of console and the prices don’t really change at all.

    They’ll be £40. Same as they always was.

    #29 2 years ago
  30. Samoan Spider

    Yeah, and an interesting link for people in the UK.
    http://www.thisismoney.co.uk/money/bills/article-1633409/Historic-inflation-calculator-value-money-changed-1900.html
    Handy to see how inflation isn’t taken into account by our fond memories of gaming long since past.

    #30 2 years ago
  31. Lengendaryboss

    @2 he did but all it will take is a publisher with money in their eyes and gets that $70 retail price.

    #31 2 years ago
  32. NightCrawler1970

    @28, thats a normal price over there €50,- yall have a higher minimum wage..

    Maaruh die kutbelasting-dienst krijgen van mij GEEN ENUH ROOIE ROTCENT.. whahahahahahahhaa

    #32 2 years ago
  33. Cobra951

    If inflation made all the difference, games would cost well over $100 already. Gaming is nonessential. Beyond a certain price, sales will plummet. I don’t know if the market can bear $70 apiece or not. Maybe it can. I typically wait for prices to drop anyway, so it won’t make much difference to me.

    #33 2 years ago
  34. OlderGamer

    Just for fun, but if there aren’t any second hand games for sale…the pubs/platform holders can set any damn price they want. What are you going to do? Wait for the price to come down? Again without cheap second hand copies lining the shelves of your local retailer, the games prices WON’T be coming down for a very long time.

    Love them or not, used games force new game prices down over time.

    Next gen is really shapping up to be a bitch. Really. Hard to be excited.

    #34 2 years ago
  35. OlderGamer

    Oh and TG +1.

    #35 2 years ago
  36. Cobra951

    @35: Again, gaming is nonessential. I can’t wait long to eat or fuel my transportation, but I can certainly wait a very long time for prices on games to become acceptable (especially considering my backlog of cheap games).

    #36 2 years ago
  37. OlderGamer

    Understood Cobra, and I agree. But just because you or I can wait, doesn’t mean that the pricing is a good idea. Or infact doesn’t mean that the pubs intend for you to wait. They will still want the same strong day one sales, and will rely heavily on preorders and DLC incentives.

    In the end I think it will prolly lead to less trip A games.

    The gap that high pricing will create will prolly be filled with cheaper digital only lower budget games. Like the Steam/XBLA/PSN/WiiWare stuff. I have been thinking more and more that the consoles will be alright, it is the high profile, big budget AAA games that are endangered. And if they fade in pulling power, then consumers could flood to moblie and PC is droves, or just drop off.

    In order to have staying power, consoles need to deliver gaming experiences that can NOT be found on mobile, but at a price point that can be reasonable to the average person. Because hardcore gamers don’t make or break a system. The average everyday walmart shopers do. No way they start buying systems with 70usd games.

    Instead of expanding the audiances, consoles will narrow them if the prices go up.

    #37 2 years ago
  38. OrbitMonkey

    @35, Not gonna happen OG. If it was just one publisher & one platform ruling them all, then yeah… Maybe. But even then, people would just stop buying.

    Their will be plenty of competition next-gen, even if they do away with used game sales.

    #38 2 years ago
  39. DrDamn

    @OG
    “the pubs/platform holders can set any damn price they want.”

    If second hand is not an option and they set them too high either people won’t buy them, or they will buy less of the top price products. The pubs/platform holders don’t win in that situation either. Particularly in a more digital product world where they have fewer overheads per units sold.

    It won’t be sustainable to sell at these prices and keep them high if people aren’t willing to pay them.

    I think the explosion next generation will be in the regular to premium XBLA/PSN titles – with AAA in further decline. So any point about games costing $70 will be moot. “Games” are a lot more than the AAA retail releases now, and will be even more so in the future.

    #39 2 years ago
  40. polygem

    i rareley buy games at release these days, because of the pricing. if i do i mostly buy in uk because they are sometimes much much cheaper than in germany. gow ascension is 69,99 on amazon germany. on amazon uk i pay 55 euro. no brainer. i am buying british.
    i am hoping for sony here and i really have a feeling that they have something in their sleeves. ps+ is great. i just joined for the first time. if you have a vita and a ps3 it´s totally worth it. i hope they will go further with that service. since i do not really collect games and would totally love to go all digital (if pricing is fair), i would totally embrace a digital, subscription based, premium rental service (if there wouldn´t be time pressure to play and finish those games). i am hoping that sony is cooking something like that…

    #40 2 years ago
  41. OlderGamer

    This:

    “Maybe. But even then, people would just stop buying.”

    And, this:

    “If second hand is not an option and they set them too high either people won’t buy them, or they will buy less of the top price products”

    Here was my thought:

    “The gap that high pricing will create will prolly be filled with cheaper digital only lower budget games. Like the Steam/XBLA/PSN/WiiWare stuff. I have been thinking more and more that the consoles will be alright, it is the high profile, big budget AAA games that are endangered”

    I think it is important to look at WiiU and Vita and even 3DS as to the tie in with adoption rates and price point. I don’t expect much easier going for either PS4 or XBNXT. 400usd+ systems will have a hard time selling beyond early adopters. If the software is there, that will help. Lack of software, imo, along with price hurt 3DS, Vita, and WiiU. But if said software is 70usd…that adds in another wrinkle.

    It is easier to sell a system at the store when people can also see boxed software to buy/play on it. It is harder to move that same system with the idea of “take it home, and find something to download on it”. Sure there will prolly be a influx of cheaper download only games, but does that move hardware off the store shelf at Walmart or Toys r Us or Sears or Target or anywhere that less informed but still extremly vital purchaser will be shoping?

    I am not very sure about that. I have to wonder if digital games move systems. It seems a given today that everything will have digital only downloads. And many people will prolly feel that their current systems, PC, Mobile, PS360 also offers the same type of games. And they already have those, so why invest in new hardware?

    #41 2 years ago
  42. manamana

    My biggest fear aren’t game prices, but always-on and DRM. What if I can’t play a beloved game after five years because the developer is shutting down the server or worse, bankrupt? The digital future is here and the always-on will come sooner than later. Plus microtransactions everywhere. You wont pay $70 anymore because it’s f2p and p2w …

    #42 2 years ago
  43. DrDamn

    @OG
    Thing is the publishers won’t just go “Ah nobody is buying our AAA games at $70, bugger lets do something else” will they? :)

    “It is easier to sell a system at the store when people can also see boxed software to buy/play on it.”

    Surely people are well over this hurdle now? Mobile phones, tablets, PC’s even. This is known and understood.

    “I think it is important to look at WiiU and Vita and even 3DS as to the tie in with adoption rates and price point.”

    Do we even know what these are given digital numbers aren’t released?

    “And many people will prolly feel that their current systems, PC, Mobile, PS360 also offers the same type of games.”

    People do like new and shiny though. They also will buy/upgrade for specific titles – regardless of whether they could have been done on previous systems – and specific features (social).

    #43 2 years ago
  44. OlderGamer

    I do that for sports games Manamana. I will buy a game, buy the DLC and then wait a few years before investing in another one. If EA shuts down all access to a sports game after 18months(because they want me to buy a new one) that is going to be a problem.

    #44 2 years ago
  45. OlderGamer

    I still say it has potential pitfalls Doc. Lots of them. I think early adopters will buy. WiiU sold 3.5million systems in the “launch” window. That was .5million more then Wii did during the same period.

    But once the dedicated fans were owners, the sales stoped cold.

    I think it is important to not over value the importance of dedicated core gamers while undervalueing the need for average everyday consumers to buy one. Your Teas, Lexs, Gads, Docs ;) and what not will prolly preorder their fav systems, no questions asked. they will do so in good faith based on past experiences. But those folks are grossly outnumbered by the average joe. The one that isn’t buying WiiU right now. The one that, I don’t think, will bite on a 400usd+ system sporting 70usd games at the store.

    After launch, new systems could have a very slow go at retail sales.

    #45 2 years ago
  46. Cobra951

    @43: But that’s where your choice comes in. If you allow yourself to get forced online to play, you are assuming the risks of bad service and eventual lack of service. So far, Sony seems to be checking all the right boxes, including the continued ability to play offline. If MS goes the other way with the next box, they can die, for all I care. They’ll never see my money. As long as you have a choice, make the right one.

    #46 2 years ago
  47. Dragon246

    @44
    “People do like new and shiny though.”
    Exactly. Otherwise smartphone biz would have been in an downward spiral for years now.

    I remember these words from Peter Moore to IGN previous year (not exact quote, but the meaning is same)-
    Our job is to push people into paying max they will for the content.

    And really,if you think its wrong, then you are silly and have never sold a thing in life. You try to extract the most you can from your sale.
    Now, no one is forcing anyone to buy games. If they indeed cost 70$, don’t buy them, simple as that. I am very optimistic that when the next-gen starts in holiday 2013, they will sell well, but if they are near the WiiU levels, then I am sure drastic steps will be taken across the board.

    #47 2 years ago
  48. DrDamn

    @OG
    Yeah see my comment in the other thread …
    http://www.vg247.com/2013/03/11/ps4-is-gaming-console-at-heart-pc-architecture-requested-by-devs/comment-page-1/#comment-456845

    The trick will be in getting past the first lull. Who knows what Joe Public will latch on to – they are a weird bunch :)

    #48 2 years ago
  49. manamana

    @cobra we need to wait and see what’ll be released by the big players, actually. I still think that Valve has something mindblowing to show at E3 …

    #49 2 years ago
  50. Gheritt White

    FYI, this isn’t true. Pubs/devs are currently trying to figure out ways to charge *less*, not more, hence all the emphasis on microtransactions and other new monetisation models. Everyone is well aware that $60USD is too high and at $70USD nobody would ever buy a game brand new.

    #50 2 years ago
  51. melonbuster1

    They will have no choice but to buy it new because you can’t play used games on both systems. And your gonna point to some statement by some suit at Sony. Saying it will play used games .but in the end you will get the system and it won’t. They reserve the right to change they’re minds. Just like they were going with only 4gigs of ram then bam it went to 8gigs. Because of Microsoft. Microsoft has 8gigs so Sony has to keep up. When Microsoft tells the world no more used games then Sony will follow suit. Microsoft is after apple not Sony. They beat Sony. Twice! Now on to bigger mountains! So you will pay $70. And shut up.or you won’t play.simple. so please stop the crying. Just save your pennies and be ready!

    #51 2 years ago
  52. fearmonkey

    No way this is true, simply because he said it.
    He is more wrong than right and if I were MS id be very afraid, as he says they will win the next gen lol.

    Someone should just create an app called IPachter, where it creates random quotes and saying regarding the video game industry, and see if its any less wrong than the real Pachter is.

    #52 2 years ago
  53. Phoenixblight

    @52

    They already said it wasn’t so I don’t know where you get off saying otherwise. You don’t know what they will do especially since you are a nobody.

    #53 2 years ago
  54. nollie4545

    The fact is that if both companies are charging stiff prices for their games, to offset the fact they flogged their consoles at a loss, then gamers have to pay it or go without the games. I don’t trust MS or Sony at all, and there is no way I am spending mega money on either of their products until I have seen the whole package. I won’t be one of the idiots queuing on day one to get their shiny crimped PC in a box.

    #54 2 years ago
  55. ManuOtaku

    I would not mind this, right now here in venezuela a game costs 200$, but i do believe there should be a different price point for different types of games, games that offer more should have a high price point because it cost more to do so, there are some XBLA/PSN titles that offer more than some AAA titles, therefore i think prices should be set for what the game do offerss.

    Regarding steam, i know theres people that like it, but i dont want it to become the only distribution method for this industry, i understand renting has its pros, but also has its cons, i think the consumer should also had the option of owning the access of their favorite game, like it always has been the case, the stairs elevator example comes to mind, the existence of one didnt mean the dead of the other, and it should be this way with renting vs owning the access for the games, i hope as consumer we will keep having the option to choose in the future, one way only of distribution, i mean renting, is an scary thing IMHO.

    #55 2 years ago
  56. Hellhound30x

    I love Metal Gear. I love video games, I think the world of Kojima-san, but give me a break!

    It cost them 60 million dollars to make MGS 4. Thats alot of money granted, but here is the kicker.

    ( google top 10 most expensive games ever made.)

    Metal Gear Solid 4 Moves Over 4 Million, Konami Makes $1.5 Billion. (according to Vg chartz MGS 4 has now sold almost 6 million units.

    They have more than made their money back, and these guys are crying about risk? Crying about it takes so much to make a video game. So many people involved in making a game.. yet…

    In the movie industry they pour 250 million into making The Dark Knight Rises, and it barely makes it to a billion. 250 million for a movie versus 60 million for a game? Where is the logic in that?

    GREED MY FRIENDS!

    GREED!

    They don’t want your $60 anymore. They want your arms and your legs… and your soul.

    I swear these people in the game industry make the guys who sell us raw oil look like saints.

    #56 2 years ago

Comments are now closed on this article.

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