Summary
- The Nintendo Switch 2 sets a new $79.99 standard for select games, potentially impacting industry prices as a whole.
- While Nintendo has a history of business-first moves, it’s hard to believe the company is trailblazing higher prices. Take-Two, known for strategic pricing, has previously set AAA game prices at $69.99, which makes them likely to raise the bar higher with GTA VI.
- Rising game development costs may lead to $100 AAA games sooner than anyone expected, risking consumer backlash and market saturation.
There were plenty of things players expected with the Nintendo Switch 2 reveal, but higher prices were not one of them. Nintendo is pushing things to a new $79.99 standard that feels like it will set a new precedent in the industry. It’s hard to believe Nintendo would be the one to push it this year, especially with the rumors about Grand Theft Auto VI‘s prices.
Nintendo Is Boosting Prices of Switch 2 Games
Nintendo has launched the Nintendo Switch 2 with a new pricing strategy that changes how they price their games, potentially impacting the entire gaming industry. A key example is Mario Kart World, the main launch game priced at $79.99. This is a $10 increase from the $69.99 price set for major Nintendo Switch games like The Legend of Zelda: Tears of the Kingdom.
Not every Switch 2 game follows this higher pricing model, as Donkey Kong Bonanza, for example, remains at $69.99. This suggests that Nintendo is trying a tiered approach instead of raising all prices uniformly. However, with the higher price of Mario Kart World and some other Switch 2 Edition games at $80, Nintendo is establishing a new pricing standard for its own titles.
Unfortunately, this move goes against the previously common $70 price limit seen with AAA games from major publishers and platforms. There is little doubt that this will raise costs across the board. I wouldn’t pay $80 for a Mario Kart game, but it’s not hard to imagine paying that for Grand Theft Auto 6.
The introduction of “Switch 2 Edition” games also adds to the pricing complexity. These upgraded versions of games like Super Mario Party Jamboree and Metroid Prime 4: Beyond are priced at the higher $79.99 mark as well. Those who own the games can buy an upgrade pack to access the improved features, but we don’t know the price for these packs yet. This could be another big boost to the cost of games. Most upgrades are only $10, and this may be how Nintendo introduces $20 upgrades.
Keep in mind that some upgrades are included in the Nintendo Switch Online + Expansion Pack subscription, which offers some relief for players. Either way, we will have to wait and see the true effect of Nintendo’s pricing decisions. While we can assume that buyers will just accept higher prices, this may actually lead to less consumer interest, especially considering the current economic situation.
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Take-Two Normally Boosts Prices
Despite Nintendo Switch 2 prompting the boost this time, Take-Two Interactive, the company behind Rockstar Games, has a track record of setting strategic prices for its games. Remember that NBA 2K21 was one of the first games to have a $69.99 price tag? While Take-Two mostly sticks to the usual prices for major game releases, they aren’t afraid to raise prices when they think it’s warranted (whether gamers agree or not).
This brings me back to the Grand Theft Auto VI prices, which I don’t think will cost $100, but may get close. The Grand Theft Auto Definitive Edition Trilogy was sold for $59.99, even though it had many technical problems at launch. This suggests they believe their brand has strong value despite its flaws. It’s hard to imagine Rockstar will look at the price of Nintendo’s new Mario Kart game and assume GTA VI is worth less than that.
Not only that, but Take-Two showed that it understands changing market conditions and what consumers want by adjusting the price of its subscription service, GTA+. GTA+ was initially priced at $5.99 per month but raised to $7.99, which does not happen unless the service is doing very well. The company knows how to evaluate its prices, and NBA 2K21 was just an example of that.
Developing vast open worlds with detailed graphics and engrossing stories requires significant investment. It involves large teams, advanced technology, and extensive marketing efforts. While we can only speculate, it’s unlike that Mario Kart required the level of dedication that Grand Theft Auto VI did, and it likely didn’t require the work that Red Dead Redemption 2 did, which was priced at $59.99 at release.
The reasons behind Take-Two’s pricing choices are likely complex. Even so, we can assume the rising costs of making their AAA games play a big role. The company has invested a lot into Grand Theft Auto VI, and seeing Nintendo give them reasons to push the price up makes me believe that Take-Two is going to be a trailblazer again. Nintendo basically gave Take-Two the perfect excuse to raise prices even further.
Nintendo’s History Shows Business-First Tactics
Nintendo’s history is full of famous games and well-loved characters. Still, the company has also shown a clear pattern of putting business interests first—even if it means hurting competitors or upsetting players. This focus on profits over everything else has been going on for years. The new $80 price tag for several Switch 2 games isn’t just a one-time thing; it’s the result of years of careful business decisions.
One of the best examples of Nintendo’s cutthroat business tactics is how the company betrayed Sony in the late 1980s. Nintendo had originally agreed to work with Sony to make a CD-ROM add-on for the Super Nintendo (SNES), but just one day before it was supposed to be shown at CES 1991, Nintendo canceled the deal.
Nintendo did this because it was afraid Sony would gain too much control over Nintendo’s games and characters. This move embarrassed Sony publicly and pushed Sony to create the PlayStation. Nintendo is willing to go very far to protect its business, even if it means destroying a partnership.
Nintendo is also known for its fierce legal fights against websites that host ROMs (game files), which is never legal. For example, Nintendo sued RomUniverse and won millions of dollars, and they took legal action against Dstorage, leading to huge fines. While all companies need to protect their intellectual property, Nintendo’s approach is often seen as overly harsh, especially when it’s not a big site but an individual.
The Palworld lawsuit is another recent case that makes Nintendo look aggressive and bad for gamers everywhere. Nintendo took legal action against Pocketpair, the indie developer behind Palworld, claiming Palworld copied Nintendo’s trademark—even though Pocketpair had already passed legal checks in Japan. This raises concerns about whether Nintendo is using patents unfairly and whether they’re targeting smaller companies too aggressively.
Even though Nintendo presents itself as a friendly, family-focused company that makes fun and creative games, the truth is that the company has claws. Looking at Nintendo’s past has given me a different view of Nintendo overall, and the $80 price tag feels in line with how the company has operated for decades.
We Are Not Far From $100 Games
The video game industry is heading towards possibly charging $100 for AAA games, which was once hard to imagine. The Nintendo Switch 2 has brought the industry closer to this reality, but there are likely several factors making this a real possibility. The biggest reason is the rising cost of making games.
Modern AAA titles are huge, complex projects that need hundreds of millions of dollars and many years to develop, with detailed graphics, large open worlds, and advanced gameplay mechanics. These budgets are getting bigger because of improved technology, larger teams, and longer development times that require higher salaries and more resources.
Alongside development costs are increasing marketing expenses. With so much competition for consumer attention, companies are spending a lot on advertising, pre-launch hype, and influencer marketing to ensure their games succeed. These costs are even higher with AAA titles aiming for a global audience, which means they need extensive marketing across different platforms and regions.
The idea of $100 games carries risks. There is likely to be a strong consumer backlash, especially in tough economic times when people are watching their spending closely. A big price jump could drive away a significant number of gamers, hurting sales figures. The long-term effects on the industry are unclear.
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More expensive games might lead to consumers being more selective, affecting how saturated the market is and potentially decreasing overall game sales. While the industry may see quick profits, the lasting viability of a $100 price for games is uncertain. Cheap PC games are how I got in before Steam, and I can’t see more players having the same experience.
There needs to be a careful balance between production costs and what consumers can afford. The fact of the matter is, when games hit $100, this industry will not be an inclusive hobby that anyone can partake in. It’s a luxury hobby at that point, and developers will have fewer gamers to market to.
