The video game industry is no stranger to debates surrounding the pricing of video games, especially in recent years as Sony, Microsoft, and Nintendo, among others, started charging $70 for their games. But, shortly after Capcom claimed that today's video games are cheaper than they should be, it appears that another company feels the same.
The recent comments made by Take-Two Interactive CEO, Strauss Zelnick, have reignited the conversation.
, Zelnick expressed his belief that video game prices are "very, very low," considering the value they offer. This perspective, coming from the CEO of the company behind the highly anticipated GTA 6, carries significant weight and has sparked a broad discussion among gamers and industry observers alike.
Zelnick's viewpoint hinges on a unique valuation model that considers the expected entertainment usage of a game, a process involving multiplying the per-hour value of a game by the number of expected hours of engagement, plus the perceived terminal value if the game is owned rather than rented or subscribed to. By this metric, Zelnick argues, the price of video games offers a substantial value proposition, given the lengthy hours of engagement and high-quality content they provide. He contends that the gaming industry, as a whole, presents an excellent price-to-value opportunity for consumers, despite the absence of significant pricing power or the desire to wield it.
