Toto said that part of the reason why margins are being squeezed more recently is that software production costs have been rising.
“Spiderman 2,” which came out last year and is produced by Sony-owned Insomniac Games, cost around $300 million to make, according to gaming website Kotaku, citing an internal presentation that was leaked after a ransomware group hacked the company.
“So these budgets seemed to have a significant impact on their gaming margin over time,” Toto said.
Looks like Sony passed the point of diminishing returns for their ultra costly blockbusters, they are closer to money drains now. They are having a hard time selling more than 10 million copies while the budgets are growing to insane numbers and the whole division is getting screwed.
Hence why Sony seem to be going hard into the live service/GAAS route. While their AAA single-player games probably won't completely disappear, expect to see some major cuts in production values. Either that or they going to increasing game prices, sooner rather than later.
I'm already hearing about game prices rising to $100 when the next gen consoles come around...
$100 games would be completely stupid. They’re already not selling as much with the ten dollar price hike. If video games shot up to a hundred bucks, I don’t see anything keeping even half the amount of costumers they did at $59.99. Most stuff might be lucky to keep even a third or fourth of their audience. If anything, most games should cost less, and publishers should be trying to sell more games to more people for less money.
$100 games don’t even make sense in this modern gaming market were games are free-to-play now. Like the rumor that Rockstar is thinking of selling GTA6 for a hundred bucks is fucking stupid. As much as Rockstar makes on GTA the single player game, they make even more on Online and selling Shark Cards. If they were smart, they’d just sell GTA single player as it’s own thing; and not for $70. Which will be a huge giant high all on its own. And then a few months later they’d release whatever they’re calling the new GTA Online as a F2P game, and I’m sure that’d pull in vastly more money than GTA5’s Online does. Like GTA Online does well for them, especially a few years ago, but they could be racking in Fortnite and Call of Duty: Warzone money.
At this new $70 price tag, every games should look like a special edition release, and come with nice manuals and stuff like little art books. They should have at $59.99, but they really should at $69.00 and $69.99.