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Next-gen game prices to rise thanks to add-ons, analyst warns

Analyst firm Sterne Agee & Leach believes US prices for console games will climb to $90 in the coming hardware generation, when you take all the extras into consideration.

"Our sense is next-gen games will launch at the same $60 retail price point as the current-gen games," the firm said in a note reported by Gamasutra.

"However, increasingly, publishers are striving to enhance the ARPU [average revenue per user] closer to $80 or $90 for their triple-A titles through greater focus on DLC and in-game micro-transactions, etc."

The firm also noted that digital purchases are likely to become more dominant, but that this generation isn't ready to ditch boxed releases.

"While the switch to digital is inevitable, it seems the conditions are not quite ripe for that yet and discs will likely dominate in the foreseeable future," the company said.

"This should benefit GME [GameStop], at least in the early part of the next cycle."

Xbox One and PlayStation 4 are both expected to launch in 2013 - in the US and Europe, anyway.

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Brenna Hillier avatar

Brenna Hillier

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Based in Australia and having come from a lengthy career in the Aussie games media, Brenna worked as VG247's remote Deputy Editor for several years, covering news and events from the other side of the planet to the rest of the team. After leaving VG247, Brenna retired from games media and crossed over to development, working as a writer on several video games.
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