Take-Two Interactive CEO Strauss Zelnick has stated that he believes video game prices should be priced differently depending on “expected entertainment usage,” aka the time it takes players to complete them.
When it comes to video games, the length of an experience can range from 10 hours of content to a few hundred. Open-world games like Baldur’s Gate 3 offer hours and hours of replayability, while other, more streamlined experiences opt for a concise approach.
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As a result, the topic of games selling at full price despite these variations in length has been a hot topic of conversation in recent years across the industry.
Chiming in, Take-Two Interactive CEO Strauss Zelnick added his thoughts to the mix, arguing that games should be priced by the hour.
rock star games Take-Two Interactive publishes many popular games, including the GTA series.
During Take-Two Interactive’s Q2 2024 earnings call, Zelnick explained why he believes video games should be priced relative to the time players will have to spend on them.
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“In terms of price for any entertainment property, basically the algorithm is the value of the expected entertainment use, that is, the value per hour multiplied by the number of hours expected plus the terminal value that the customer perceives in property if the title is actually owned, not, for example, rented or subscribed to.
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“And you will see that confirmed in all types of entertainment vehicles. By that standard, our top-of-the-line prices are still very, very low because we offer so many hours of engagement.”
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The CEO then added: “That doesn’t necessarily mean the industry has pricing power or wants to have pricing power. However, great value is offered.”
While there is no formula like the one Zelnick proposes at this time, it is not known if game prices will be related to their use in the future. Certain MMOs already align somewhat with their premium subscription models, but this approach has not yet been adopted by more standard multiplayer offerings.
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This could perhaps mean that when GTA 6 finally hits shelves, we’ll see it arrive with a hefty price tag given how ambitious the experience is expected to be.
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