Ubisoft Is ‘Unsure’ About If It Should Raise Its Game Prices
When it comes to massive gaming publishers, there are few that have the impressive legacy of Ubisoft. Up at the top with the likes of Tencent, EA, and Activision Blizzard, Ubisoft has some pretty big names under its belt. Boasting Far Cry and Assassin's Creed is enough of a CV on its own, but add this to Rayman, the Tom Clancy series, and Prince of Persia to see what we're dealing with. Considering Ubisoft holds the keys to so many major IPs, those at the top are considering whether it's time to move with the rest and increase the prices of their big games.
We're on the cusp of big changes in the gaming world, as next-gen consoles the PlayStation 5 and Xbox Series X/S pave the way for the future. Added to this, the physical games market is in decline as digital copies threaten to overtake the old way of doing things. While the second-hand physical game market is still booming, the digital market has stayed largely fixed with its game prices. You only have to look at the top-tier price of Nintendo games to see certain companies are willing to charge top dollar for their titles and not give it a second thought. Ubisoft is also entering its next generation with the recent success of Assassin's Creed Valhalla, the upcoming release of Far Cry 6, and a much-hyped open-world Star Wars game.
Will Ubisoft raise its game prices?
Discussing what's next in a Q3 earnings call (via VGC), Ubisoft Chief Financial Officer Frédérick Dugue admitted a price hike could be on the rise. Opening up about a potential markup on the current price tag, Dugue explained, "In terms of pricing, we’ve been analysing the competitive dynamics of the past quarter and we are still looking at new opportunities, but we have not made any decision yet". It's not a yes, but it's not exactly a no.
The issue of next-gen game prices reared its head last year when Sony said: "some" of its games would start coming with a $70/£70 price tag. Unfortunately, video games seem to standardise their prices across the board, meaning those in the United Kingdom get the short end of the stick. Since then, there's been plenty of debate, with EA and Activision hinting that they'd soon stick an extra tenner on the current pricing structure. Remember that PlayStation's Jim Ryan was among those who championed a £70 standard for next-gen games.
Ubisoft following the crowd was to be expected, but not every company is grabbing at our money like Ebeneezer Scrooge. Breaking away from the rest of the pack, Take-Two CEO Strauss Zelnick told investors "We’re definitely announcing pricing on a title by title basis. I would just observe, there hasn’t been a frontline price increase for a very long time, although costs have increased significantly". It's ironic, especially considering Take-Two was one of the first to announce a price hike with NBA 2K20.
Should Ubisoft raise its game prices?
Putting it simply, gamers are going to say no and manufacturers are going to say yet. Although there are claims video game prices haven't risen since the mid-'90s, players would argue that isn't the case. Yes, we all remember stumping up £50 for Super Mario 64 back in the day, with N64 cartridges being ridiculously expensive. Then again, there's been a lull in recent years where titles have stuck around the £50-£60 mark. When Sony's Spider-Man: Miles Morales came out and was cleverly lumped with a remastered version of 2018's Spider-Man, many balked at the ridiculous pricing that was being sold for £80 in some places.
When you're already paying £450 for the console itself, it soon adds up if you want to actually play any games. Some of us have been making the most of the PlayStation Plus Collection to play old favourites before actually stumping up for disc copies of the latest releases. On the other hand, the runaway sales of games like Activision's Call of Duty: Black Ops Cold War and Ubisoft's Assassin's Creed Valhalla show gamers are still parting with their cash. Perhaps the biggest gripe is the fact Ubisoft and the rest are known for heavily enforcing microtransactions on some of its biggest games, meaning it's already scraping a tonne off the top. You only have to look at Activision's Call of Duty franchise macing $3 billion in just 12 months - with a huge portion of that coming down to microtransactions.
Ultimately, Xbox boss Phil Spencer said we'll decide. Admitting an increase is long overdue because games are simply more expensive to make these days, Spencer told The Washington Post, "I’m not negative on people setting a new price point for games because I know everybody’s going to drive their own decisions based on their own business needs. But gamers have more choice today than they ever have. In the end, I know the customer is in control of the price that they pay, and I trust that system".
To us, it sounds very much like the consumer won't be the one deciding the price of next-gen games. If publishers decide to go down the route of raising the roof on their prices, this is sure to be one move that doesn't go down well with fans and critics alike. Hopefully, Ubisoft and the rest will take it on a title by title basis. In terms of Ubisoft game prices, you could probably squeeze a few more dollars out of something like Far Cry 6, but having a template for the entire industry just won't work.
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