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Game Price Cut "Warning"

Analyst issues discount price warning reports on a warning issued by industry analyst Colin Sebastian of Lazard Capital over discounts to "AAA" games over the holiday season, pointing to a $10.00 price reduction for Call of Duty: World at War as in illustration of a possible trend, saying: "we believe a USD 10 discount on one of the industry’s top holiday releases highlights the risk of lower software pricing moving into the New Year." Obviously the "warning" part applies to the business side of things, as consumers will welcome price cuts, but as for business, as a result, Lazard has cut its earning estimates for Activision Blizzard by about 10%, though Sebastion remains more bullish on them than their competition: "To put our new estimates into perspective, the combined change to EPS from our two recent revisions is -10 per cent, compared to a -40 per cent revision in estimates for Electronic Arts and THQ, and consensus estimates for Take Two declining by more than 90 per cent last week."

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40. Re: Game Price Cut Dec 23, 2008, 19:34 beigemore
 
I don't understand why games cost the same now as they did 20 years ago considering inflationary pressures. Games today often have a lot more content these days too. Considering production values have gone up a lot, I'm surprised these game companies can stay afloat.

They're moving MANY more units now than they ever were 20 years ago.

Also, with console games at $60, I find that I very rarely buy them and tend to stick with smaller purchases on XBLA. $50 is definitely more palatable.
 
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