![]() The cost of R&D has skyrocketed since the initial surge in home video game consoles such as Nintendo and PlayStation. Research and development, or R&D, is the process of taking an idea for a video game and bringing it to fruition. ![]() When assessing the budget of a video game, the developer will estimate the potential and probable sales of the game, correlate that to the projected cost of delivering the game to market, and decide on an appropriate price to balance cost and profit.Ĭurrently, the average price of a newly released video game is $60 and game developers use this cost as a starting point to figure out where the budget will be allocated and how much of a budget the projected sales can handle at this price point. This includes physical resources, labor resources, and any other resources the video game may require. ![]() When a video game is first conceptualized and approved for development, it is usually given a budget, which includes all the costs that it will take to get the product to market. Video game prices can also be affected by external factors such as what price the consumer will accept and the landscape of the used video game market. The budget includes the cost of research and development, the cost of running a company, retaining talented employees for game development, marketing and distribution, royalties, and game maintenance. The primary reason video games are expensive is budget. Why Are Video Games So Expensive? (Top 10 Reasons) The price of video games gets even more confusing when the same game is offered in silver, gold, and platinum edition all at different price points, leading you to wonder. ![]() ![]() While browsing the shelves of the gaming section in your local store, you notice the varying prices in video games with the games behind the glass ranging anywhere from $40 to $100. ![]()
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