Edit: Some salty commenters here. This isn’t my graph, just one I grabbed. Notes aren’t mine.
I’m a huge proponent for inflation adjusted livable minimum wage- which should be close to $30 an hour these days. Also hugely worried about our housing cost trends.
I’m only pointing out that expecting games to cost 40-60 for life is a little silly- yall still paying $.10 for a loaf of bread? I remember when games inched from $40 to $60 and everyone lost their minds- no one complains about it anymore. Don’t wanna pay retail? Wait for sales, bundles, used copies.
Nintendo games never go on sale. And if somebody buys a Switch game, dumps the ROM, and sells it to you, your Nintendo account gets banned because the ID in the header matches the one being distributed over the Internet.
Okay, but now do housing and groceries and you’ll see why people don’t have extra money laying around for another Nintendo and its Mario kart.
Economics is significantly more complicated than a bar graph of inflation-adjusted video game price tags lol. Hell, even just value of each game in their respective release time period is more complicated than that. I doubt there’s anything unique to this new game (other racing games have done the open world thing several times starting like 15 years ago), but the kart racer genre itself was new back in the 90s.
Edit: seems the previous line might not apply to the US because insanity.
The real issue is that inflation only accounts hire much more things cost, but not the trend on salaries. If salaries and costs follow the same slope, you’re “even”. The problem is when costs increase at a faster rate than income.
Edit: these notes have been addressed in OP’s post
Note: Salary growth has outpaced inflation.
You know what else has outpaced inflation? The cost of living. Purchasing power for middle and lower class people is far less than what it used to be. “Inflation” doesn’t account for that.
Volume of video game sales has changed monstrously over the years as it moved from a niche hobby to mainstream
SNES Mario kart - 8.76 million copies sold worldwide
Switch Mario kart 8 - 67.34 million copies sold world wide.
SNES mario kart (inflation adjusted) earnings - 1,095,000,000
Switch Mario kart earnings - 5,252,520,000
Game dev budgets have obviously exploded in that time and nintendo doesn’t disclose their budgets but on average its estimated snes titles got about 1-2 million and switch/wii u titles got 30ish million. That’s a sizable increase in development that wildly outpaces inflation, for sure, but their earnings obviously did too.
your pricing is higher when volume of sales is lower because you have to cover overheads and still make a profit.
When volume is significantly higher the pricing can be lower. You can still cover your overheads because even though you make less money per unit, you overall still can make the same amount (or in this case, 5x as much) because of the increased sales volume
The “need to increase prices” is motivated by several factors like a weak yen and remaining fear from the commercial failure of the Wii U but it’s primarily greed and hostility to consumers. Mario kart is the most successful nintendo game so it is not fair to use it solely as the metric but it is also not as if their other games all suffer and that they don’t make shitloads of cash; 11 billion last year and 12 billion the year before.
And those numbers don’t include companies that are commonly associated with by divested from nintendo like the Pokémon company, which made another 1.9 billion on top of that last year. And unlike many western AAA developers their development costs appear to be far more controlled, with estimates of 20-30 million per game vs something like Spider-Man 2 for the ps5, which was over 10x that at 315 million. According to the leaks the first Spider-Man game cost over 100 million to make and made 827 million back.
The cost ceiling for AAA games has increased, but no I’d say considering advancements in game engines and the power of personal computers the floor has never been cheaper (1 person can make a game in their free time for $0, even 3D).
If any were to embrace the lower-end(/minimalism, proven older techniques) you’d think it’d be this company, but now their releases are “only” 10-20GiB.
This doesn’t mean anything. Something only has as much value as the customer is willing to pay. People don’t want to pay more than $60 for most new games being released today and companies need to accept that.
Fuck what it cost years ago.
Same goes for everything else. You could make the same argument for cars and trucks which are now reaching $50k USD for base features. Still doesn’t matter. Still overpriced.
Let’s talk about what we’ve lost too. Games used to come as a complete edition. Now you get the game and it’s unplayable on the first day without an update and even then still has features broke, waiting for an update weeks or months later. Not to mention DLC.
Edit: Some salty commenters here. This isn’t my graph, just one I grabbed. Notes aren’t mine.
I’m a huge proponent for inflation adjusted livable minimum wage- which should be close to $30 an hour these days. Also hugely worried about our housing cost trends.
I’m only pointing out that expecting games to cost 40-60 for life is a little silly- yall still paying $.10 for a loaf of bread? I remember when games inched from $40 to $60 and everyone lost their minds- no one complains about it anymore. Don’t wanna pay retail? Wait for sales, bundles, used copies.
To your edit: Exactly! The only problematic trend I see is that physical copies are getting more scrace.
Nintendo games never go on sale. And if somebody buys a Switch game, dumps the ROM, and sells it to you, your Nintendo account gets banned because the ID in the header matches the one being distributed over the Internet.
Okay, but now do housing and groceries and you’ll see why people don’t have extra money laying around for another Nintendo and its Mario kart.
Economics is significantly more complicated than a bar graph of inflation-adjusted video game price tags lol. Hell, even just value of each game in their respective release time period is more complicated than that. I doubt there’s anything unique to this new game (other racing games have done the open world thing several times starting like 15 years ago), but the kart racer genre itself was new back in the 90s.
This is a valuable way of seeing how prices have changed in different ways for different categories, just since 2000.
Okay. So, they won’t buy one then.
Yeah, people don’t make enough money, I agree.
Housing and groceries are part of the inflation…
Edit: seems the previous line might not apply to the US because insanity.
The real issue is that inflation only accounts hire much more things cost, but not the trend on salaries. If salaries and costs follow the same slope, you’re “even”. The problem is when costs increase at a faster rate than income.
Groceries (and energy costs) were excluded from inflation in the 1970s as politicians decided that they were “too volatile”.
My bad, I tried to use a logical definition of inflation in a logical country. They are definitely considered in my country.
If the biggest costs of living are not considered in the metric for cost of living increase, WTF.
I’ll update my comment
Edit: these notes have been addressed in OP’s post
You know what else has outpaced inflation? The cost of living. Purchasing power for middle and lower class people is far less than what it used to be. “Inflation” doesn’t account for that.
this argument is so fucking dumb
Volume of video game sales has changed monstrously over the years as it moved from a niche hobby to mainstream
SNES Mario kart - 8.76 million copies sold worldwide Switch Mario kart 8 - 67.34 million copies sold world wide.
SNES mario kart (inflation adjusted) earnings - 1,095,000,000 Switch Mario kart earnings - 5,252,520,000
Game dev budgets have obviously exploded in that time and nintendo doesn’t disclose their budgets but on average its estimated snes titles got about 1-2 million and switch/wii u titles got 30ish million. That’s a sizable increase in development that wildly outpaces inflation, for sure, but their earnings obviously did too.
Because they… sold more copies?
yes obviously
your pricing is higher when volume of sales is lower because you have to cover overheads and still make a profit.
When volume is significantly higher the pricing can be lower. You can still cover your overheads because even though you make less money per unit, you overall still can make the same amount (or in this case, 5x as much) because of the increased sales volume
The “need to increase prices” is motivated by several factors like a weak yen and remaining fear from the commercial failure of the Wii U but it’s primarily greed and hostility to consumers. Mario kart is the most successful nintendo game so it is not fair to use it solely as the metric but it is also not as if their other games all suffer and that they don’t make shitloads of cash; 11 billion last year and 12 billion the year before.
And those numbers don’t include companies that are commonly associated with by divested from nintendo like the Pokémon company, which made another 1.9 billion on top of that last year. And unlike many western AAA developers their development costs appear to be far more controlled, with estimates of 20-30 million per game vs something like Spider-Man 2 for the ps5, which was over 10x that at 315 million. According to the leaks the first Spider-Man game cost over 100 million to make and made 827 million back.
But isn’t it easier if I just ignore the nuance of economics and just place all the blame for my unhappiness on corporate greed?
I think it’d also be interesting to see the total production cost of each Mario Kart, and a total sales/revenue generated by each game.
Games are also much easier to distribute now than they ever where, saving cost.
True- but they cost like 1000x more to develop too.
The cost ceiling for AAA games has increased, but no I’d say considering advancements in game engines and the power of personal computers the floor has never been cheaper (1 person can make a game in their free time for $0, even 3D).
If any were to embrace the lower-end(/minimalism, proven older techniques) you’d think it’d be this company, but now their releases are “only” 10-20GiB.
I don’t see Diddy Kong Racing on there which is really the only one you need anyway.
Diddy Kong Racing is the GOAT
This doesn’t mean anything. Something only has as much value as the customer is willing to pay. People don’t want to pay more than $60 for most new games being released today and companies need to accept that.
Fuck what it cost years ago.
Same goes for everything else. You could make the same argument for cars and trucks which are now reaching $50k USD for base features. Still doesn’t matter. Still overpriced.
Let’s talk about what we’ve lost too. Games used to come as a complete edition. Now you get the game and it’s unplayable on the first day without an update and even then still has features broke, waiting for an update weeks or months later. Not to mention DLC.