While gamers complain about high prices, Take-Two Interactive’s CEO argues that video games are exceptionally cost-effective. Strauss Zelnick believes that game prices are surprisingly low compared to their value, contrasting with price hikes in streaming services. The gaming industry rarely sees price increases, with Take-Two setting prices based on gameplay value and time.

Many gamers lament the high cost of video games, especially in Hungary where base game prices often reach 30,000 forints. However, Take-Two Interactive, the publisher of GTA 6, contends that games are actually very affordably priced. The company’s CEO, Strauss Zelnick, explained at an investor conference that video games provide significant value at a relatively low cost.

Zelnick cautioned against generalizing from the price increases of streaming services like Netflix, stating that the gaming industry operates under a different commercial logic. Take-Two determines game prices based on how much users play and value their gaming time, as well as the overall perceived value of the game. According to Zelnick, this makes their games “very, very affordable.”

The CEO emphasized that their strategy has always been to provide greater value than what they charge consumers. Price increases are rare in the gaming industry, such as the introduction of $70 price tags in 2022 after years without hikes.

Zelnick also commented on the use of artificial intelligence in game development, which he believes could benefit all aspects of the process, but is unlikely to reduce game prices. Further details on this topic can be found in another article.

Zelnick isn’t the only executive with this view; the CEO of Capcom also made similar statements during the Tokyo Games Show.

Rockstar announced this week that the first trailer for the next Grand Theft Auto will be released in December.

Source: Rock, Paper, Shotgun