Will Gamers Take a Hike?
Price may be no object to the initial purchasers of the Xbox 360 and other new systems. But with next-generation consoles burning a hole in consumers' wallets, Spiegel and other analysts question how much money will be left over for games -- particularly the higher-priced titles.
"The average gamer's discretionary
Additional factors will weigh on publishers' ability to maintain higher prices. While Activision, EA and the like are apparently targeting a $60 price point for next-generation games, Microsoft and other console makers seem to have a different pricing plan.
Amazon is listing Microsoft's Project Gotham Racing and Perfect Dark Zero -- two of the company's more widely anticipated games for the Xbox 360 -- at $50, or $10 less than rival titles.Competition also will weigh on prices later in the cycle. As more games are released for the next-generation consoles, older titles will become available as cut-price catalog editions or as used games, meaning that titles will have to be truly different to distinguish themselves -- and command a premium price. Further pressure could come from the kind of bargain pricing Take-Two engaged in last year when it was trying to gain market share in the sports game front. As the number of games and consoles increases, "it becomes much harder to maintain a higher price point," says David Cole, an industry analyst with DFC Intelligence. "It's just basic economics."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV