Reality
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I agree with most of what you said and as I mentioned in my other post I have avoided buying consoles in recent years simply because PC games tend to have better discount sales.The standard price for video games may be increasing to $70 for the PlayStation 5 and next-gen Xbox, ending 15 years of $60 games
https://www.businessinsider.com/video-game-price-increase-60-70-nba-2k-xbox-ps5-2020-7?IR=T
When this year's annual "NBA 2K" game launches, it'll cost the same $60 it has always cost for current-generation Xbox One and PlayStation 4 consoles.
But when the PlayStation 5 and Xbox Series X arrive this holiday season, the next-gen version of "NBA 2K21" will cost $70 — a precedent-shattering shift in the price model that the game industry has used for console games for over 10 years.
Found these comments on another forum which pretty much sums it up for me.
1) The "development costs have gone up" is a myth only an idiot would believe. In fact, dev costs have remained relatively stagnant, compared to the total income increase of game companies in recent years. Game companies, with the help of their favourite shills, ahem, excuse me, "game journalists", base this lie on the graphic quality increase, which really is not costing them more money if you actually understand how game development works. Yeah, perhaps a little more for a couple of more texture artists, but that's about it. It is a myth that just because a game has 2x-4x more pixels on the screen or an improved water shader, somehow it costs more to make. But gamers buy this myth, especially kids.
2) On the other hand, the marketing costs have gone up, and keep going up, because now there are more shills. It used to be that only game journos were bribed, but now we have streamers, youtubers, forum trolls and redditors who pretend to absolutely adore the latest game and tell you to buy it, viewbots in singapore to help our shill get more noticed, etc etc. Tons of money to spend, really, for "promotion". THOSE costs definitely have gone up.
3) The income of most game companies has gone way up. The size of the industry kept expanding tremendously in the last 3 decades. They sell at the same price, but they sell far more content to far more people.... Also, with microtransactions and DLCs, games don't really cost 60$ no more. 60$ is the initial cost, if you want the full game, you have to pay for far more than that, usually.
4) Game distribution and publish costs have gone down. Digital distribution and the eradication of manuals have lowered the costs considerably. Quality game manuals, maps, game cases, cartridges, used to make up for much of the 60$ price of a game. Now those things don't exist. Game "journalists" always forget to mention that for some strange reason....
5) Increasing the base price of video games won't eradicate DLCs and microtransactions. This is another huge lie. They tell you this, to make you initially swallow the price increase, but you will see that DLCs and microtransactions will become WORSE, on top of the increased base price, not better. These scum are lying to you.
However, there is another way to look at it
It is possible for example the platform companies are taking a larger percentage of sales now from publishers.
One of the reason that may be happening is that the platform companies are subsidizing more of the costs of the newer consoles to consumers as they tend to cost more to produce than they sell for, especially in the first couple of years of release.
From a consumer standpoint, paying $10 or $20 more for each console game when combined with the costs of the console still come out a lot less than it would cost to buy/build a good gaming PC and also buy the PC versions of the games.
For example, I recently started acquiring the parts (when available) to build a new short-term gaming PC that will be used more as a HTPC in the near future.
Now I could have bought a pre-built one but since this is the first PC I have built for myself in years, I have specific parts I want used in the build.
I did not go cheap on the parts but I also avoided buying the top level options and I still ended up spending way more than I planned to spend for this build.
For the money I spent, I could have bought a PS5 at its higher expected price when it is released along with a lot of PS5 and PS4 games and still spent way less money.
I still prefer PC gaming, but I can definitely see the appeal of consoles as they get more and more comparable to PC gaming.