Game prices should have increased with every new generation, former PlayStation US boss says
Game prices should have increased with every new generation, former PlayStation US boss says

Game prices should have increased with every new generation, former PlayStation US boss says | VGC

Except costs went down when they switched from cartridges to discs, and then again to mostly digital.
So, no. It should not have.
Costs have ballooned, but on the production side, not the distribution side. Perhaps the reduced costs on the distribution side are partially responsible for prices remaining so stable in the face of inflation.
The costs only ballooned because the companies keep bloating themselves. It's gotten cheaper to make games, but more expensive to run giant companies that pay ludicrus amounts of money to executives.
Yes, companies have made very bad decisions in what aspects of production to focus on in the last decade. They're pouring more and more into ever decreasing rates of return on visual fidelity.
You can't seriously think something like Cyberpunk or God of War or even Half Life 2 costs less than Super Mario World because they sell more digitally.
Cartridges to discs were definitely a massive savings... and happened basically one and a half times (Sega to the CD and Sony from nothing to the Playstation)
Digital... is complicated. It definitely benefits the platform holder and lowers production costs for the major publishers (and makes indie games viable) but it also fundamentally changes marketing. Because people generally don't browse the PSN Store to find new games. They only get recommendations from influencers. Whereas plenty of us have fond memories of standing in a Best Buy or Circuit City and picking what game looked good on the shelves.
But yes. I agree that not every single generation should have led to a price jump. But I can definitely see an argument for most of them to have raised the price of "AAA" games with tiered pricing beyond that. Because it really is a problem and not just for the major publishers. Indie games basically need to launch at an effective price of 10-20 bucks on PC to stand a chance and... that is great money for the small dev teams but not so much for a medium sized C/B tier game.
The huge win in digital for them was killing the resell market.
No used games means no competition from previous owners. Prices can stay at $60/70/80 forever without any user market forcing prices down.
Every media vendor wants digital only to cut production costs, but it's really to own the market. Consoles did exactly that for decades. The shift to subscriptipns for not only online at all but also to "dont own games, just give us a monthly part of your invome forever" was them pushing this advantage to its maximum conclusion.
Only now, with falling sales and falling interest due to "quick media" like tiktok/instagram/etc, is microsoft giving up on its console moat and sharing all games across devices. Only a loss of relevance as an entertainment medium is forcing them to open the market up again.
Who chooses to buy games based on influencers? I rely on reviews.
People don't browse the PSN store, because it's crap. I mean, the steam store is pretty bad, but I still manage to just browse and bookmark some games there to get back to later.