Why are games getting more expensive is a question that is ever-present in the community, and the steady climb appears to align with numerous factors – the most notable of which being plain old inflation.
Why Are Games Getting More Expensive?
The technology behind games has become more expensive as games have gotten more complex, and the teams necessary to build them have become larger – both of which mean games cost more to make.
The rising cost is a natural response from developers and publishers, to ensure they see some of that money back.
More recently, the conversation has turned on the climb (and subsequent climb down) of The Outer Worlds 2 from $70 to $80, as well as plenty of discourse around how costly the much-anticipated Grand Theft Auto 6 will be.
The recent US tariffs have been highlighted as a primary cause, but there are more factors at play.
How Much Will GTA 6 cost?
Grand Theft Auto 5 has sold over 215 million copies and earned around $10 billion in revenue, making it the second-best selling game of all time, and one of the most commercially successful entertainment products ever made.
This is a high benchmark of expectation for the sequel, but many are expecting it to fare similarly well, but would too high a price tag have an impact on those sales?
Perhaps, but it’s also possible that the GTA franchise is one of the only games in such a position to price itself however it wants (within reason) and still see audiences willing to pay for it.
While rumours initially circulated about the possibility of GTA 6 costing as much as $100 (£90-£100), many argued that it’s more likely to settle around $80 (£70-£80), especially with games like Outer Worlds 2 and Borderlands 4 debating coming up to this price.
With the game having an estimated budget of $1-2 billion dollars, developers Rockstar will eager to recuperate these costs, but once GTA 6 makes the price leap, it’s natural to assume that other games will follow suit.
However, with the US tariffs having an impact on the price of games across the board, could consumer costs begin to spike?
The Impact of US Tariffs on Gaming
The tariffs introduced by president Donald Trump impose a levy on goods coming into the US, and since many video game consoles and accessories (including computer screens, TVs and headsets) are manufactured primarily in Asian markets, this has led to higher prices.
Sony has already announced that a $50 price hike for PlayStation 5 consoles will be put into place in the US as a result of the tariffs, with CEO Lin Tao stating that the it could result in a $685 million fiscal hit for Sony.
Nintendo, meanwhile, held firm amid backlash to the initial reveal of their $450 Switch 2, citing the tariffs as a reason for their retail price.
While some companies are considering moving production to the US — which is the desired outcome Trump is aiming for — others will no doubt be looking for other strategies to help mitigate these increasing costs.
The Unsustainability of Big Budget Hames
While the tariffs exacerbate the problem, there are factors at play which were already causing game prices to skyrocket.
With development costs rising, the price of the games needs to rise in order to see a return on investment, but this creates an environment where AAA game design is becoming much less sustainable.
What’s more, these challenges come amid changing audience expectations for games – bigger, longer and more detailed open-world games are often the most successful.
That means that games take longer to make, with larger teams that ramp up costs – and that’s without any major developmental issues.
In the case of Dragon Age: The Veilguard, constant changes in development that took the game from a multiplayer live-service game back to a single-player linear one, over the span of ten years, meant that the ‘solid’ sales reported by EA weren’t enough to save the team from a round of lay-offs.
This creates an environment where indie developers are able to thrive due to lower production costs, but it also means only the largest and most financially secure AAA developers can move confidently, creating a high-risk zone in the middle that many developers fall into.
