SEGA Contemplates $70 Game Prices: What's Driving Video Game Cost Increases?

SEGA Group Corporation SGAMY is contemplating a move to increase game prices to $70 for "next-gen" consoles, following in the footsteps of industry leaders.

According to Kotaku, Sega stated in its recent earnings report that it is reviewing game prices to determine where increases are appropriate, following the lead of companies like Take-Two Interactive Software, Inc. TTWO 2K Games and Square Enix Holdings Co., Ltd. SQNXF.

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As per a transcript of the company's April 28 earnings call (via VGC), Sega said: "In the global marketplace, AAA game titles for console have been sold at $59.99 for many years, but titles sold at $69.99 have appeared in the last year."

The company added: "We would like to review the prices of titles that we believe are commensurate with price increases, while also keeping an eye on market conditions."

The company aims to align its prices with market conditions and the industry's shift toward higher price points for blockbuster video games. While Sega's recent releases have been priced at $60, upcoming "Yakuza" and "Sonic" games could be the first to see a price hike.

Notably, the price changes have mainly affected console games, while PC versions have remained $10 cheaper. However, given the escalating budgets of AAA games, it is unlikely that this price discrepancy will persist indefinitely.

Sega's potential increase in game prices reflects the industry's rising production costs and signals a broader trend in the market.

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