The controversial president of Embracer Group has discussed the issue of raising video game prices above $70 amid rising development costs and fierce competition in the market.
Lars Wingefors, who has laid off thousands of employees, closed several studios and sold subsidiaries over the last year, told GI.biz that raising prices for video games is something Embracer is considering as it would encourage more video games to be released.
“I'm not saying you can't raise prices,” Wingefors told the site, “but the reality is that no one has tried it. If you made a massive role-playing game that had, say, 100 to 150 hours of playtime, was highly polished, and was a unique experience, would consumers be willing to pay more? If they did, there could be more products on the market, but no one has tried it.”
“It’s something we’ve discussed, but we’re currently following industry practice. [company] Will there ever be a day when they try to raise prices? That remains to be seen.”
The AAA video game industry raised video game prices en masse when the current console generation launched in 2020, but the $70 price point has become a hot topic in recent months amid the industry's struggles. Recent data suggests that gamers are increasingly favoring older live service games like Fortnite, Roblox, and Call of Duty, leaving less room for new full-priced games.
Indeed, Embracer has produced a number of high-profile flops, including the recent horror revival Alone in the Dark, which Wingefors said was a “big investment” that “didn't draw a big enough audience.”
“I think the games industry faces the same problem as any other industry: inflation and the rising costs of game development,” Wingefors added. “It's hard to raise prices. [in] Premium PC/Console. Prices for these products have remained the same for years, meaning less margin for success and higher capital costs. After all, when making big investments and games, you want to play with a team you're very confident in and an IP you own or control, and make your full revenues.
“Additionally, consumers have more content to choose from than ever before. They're invested in the established IP they've been playing for a long time, making it harder to get them to try new things and new IP. It's a challenge we're all facing. We've been adapting to this reality for the past year and will continue to adapt to this reality.”
Wingefors' comments suggest that Embracer is essentially waiting for other video game companies to raise their prices before doing so itself — but what company could justify such a move that would likely be met with backlash from gamers?
Currently, Rockstar is at the center of discussion on this topic: the Take-Two subsidiary plans to release GTA 6 in late 2025. Rockstar has yet to announce how much GTA 6 will cost or how the game will be sold, but few games will have as big an impact as this behemoth.
In November 2023, Take-Two president Strauss Zelnick said that the front-line price for video games “remains very low because they offer extended periods of engagement” compared to other forms of entertainment.
“The value of this initiative is very high,” Zelnick added, “so I think the industry as a whole is providing a great opportunity for consumers in terms of both price and value. This doesn't necessarily mean that the industry has pricing power or wants to have pricing power, but the value that's provided is very significant.”
Wesley is IGN's UK News Editor. Find him on Twitter at @wyp100. You can contact Wesley at wesley_yinpoole@ign.com or wyp100@proton.me.
