Higher prices for PS3 games?

After SCE president and CEO Ken Kutaragi made his interesting keynote address at the TGS 2006, Munechika Nishida, a well-known contributor to the Asahi Shimbun newspaper and Ultra One PC magazine, claimed that PS3 games will be tagged in the 8,800 to 9,800 Yen ($ 75 to $ 84) price range because of the rising cost of development. This price range is higher than what people are prepared to spend.

If we look back, the standard price of PS2 games in Japan is 6,800 Yen ($ 58) and in its history, Dragon Quest and Final Fantasy reached 8,800 Yen ($ 75). According to Nishida, Sony originally planned to “alleviate cost pressures on 3rd parties by lowering royalty costs”.  But that was then, when the thinking was that users would be able to make their own games and distribute them via the PS3 (online). Unfortunately, that plan has been put on hold.

Furthermore, the article divulged that Sony is switching to a more traditional business model where the PS3 will be sold at a “surprisingly low price and losses will be recouped on software royalties”. Although Nishida’s claims are based on info from software distribution firms, we are not sure how accurate they are. But if PS3 games will be set at the said to price range, then this could disappoint fans who aren’t prepared to spend more on PS3 games.

After SCE president and CEO Ken Kutaragi made his interesting keynote address at the TGS 2006, Munechika Nishida, a well-known contributor to the Asahi Shimbun newspaper and Ultra One PC magazine, claimed that PS3 games will be tagged in the 8,800 to 9,800 Yen ($ 75 to $ 84) price range because of the rising cost of development. This price range is higher than what people are prepared to spend.

If we look back, the standard price of PS2 games in Japan is 6,800 Yen ($ 58) and in its history, Dragon Quest and Final Fantasy reached 8,800 Yen ($ 75). According to Nishida, Sony originally planned to “alleviate cost pressures on 3rd parties by lowering royalty costs”.  But that was then, when the thinking was that users would be able to make their own games and distribute them via the PS3 (online). Unfortunately, that plan has been put on hold.

Furthermore, the article divulged that Sony is switching to a more traditional business model where the PS3 will be sold at a “surprisingly low price and losses will be recouped on software royalties”. Although Nishida’s claims are based on info from software distribution firms, we are not sure how accurate they are. But if PS3 games will be set at the said to price range, then this could disappoint fans who aren’t prepared to spend more on PS3 games.