Video games

Wall Street Analyst Claims Games Are Too Cheap

According to people who don't play video games, we are not paying enough for video games

While both the games press and mainstream news both are covering the reaction to Star Wars Battlefront 2 ‘s micro-transactions, CNBC has released a report done by KeyBanc Capital Markets analyst Evan Wingren stating that the reaction to the game and publisher EA’s practices are just because gamers have grown used to a low price point that has not dynamically changed, despite what Wingren considers a mismatch of both price point in terms of other media and development cost for game studios.

Gamers aren’t overcharged, they’re undercharged (and we’re gamers). … This saga has been a perfect storm for overreaction as it involves EA, Star Wars, reddit, and certain purist gaming journalists/outlets who dislike MTX-”

“If you take a step back and look at the data, an hour of video game content is still one of the cheapest forms of entertainment,” he wrote. “Quantitative analysis shows that video game publishers are actually charging gamers at a relatively inexpensive rate, and should probably raise prices.”

Evan Wingren Via CNBC

This includes math that shows that while the cost of movies and TV have increased to match the amount of hours they deliver, gaming is still relatively low cost while high in reward. Many video game pundit and even creator has noted that the comparison of media forms doesn’t work. Movie theaters charge higher prices in order to care for brick and mortar establishments and disinterest in many facets of the film industry. While AAA gaming publishers continue to note large scale returns each quarter. Despite that, many other analyst who admit they are not gamers, seem to agree with Wingren saying the price of games needs to either increase or be made up in other portions of the game.

No matter if people agree or disagree with micro-transactions, most people who game agree, $60 is enough of a standard price.

(Source – CNBC)

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