∞ iOS games headed for $40? Not so fast, says dev

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Take-Two Interactive Software CEO Strauss Zelnick raised eyebrows when he recently told Forbes that games for iOS would eventually hit $40, similar to the price that gamers pay for titles for Nintendo handhelds. Paul O’Connor of Appy Entertainment has a very different opinion.

“Prices on iOS game are compressed to free or $1 because this platform is at the center of the most competitive entertainment software market in history.”

iPad Developer Rebuts Take-Two CEO’s Pricing Comments on Tablet Games | IndustryGamers


  • http://www.autriv.com Justin Esgar

    I agree with Zelnick.  Games, much like productivity software prices will go up as well.  We released SignMyPad Pro for $99 – and while we get plenty of slack for it – it’s made for those who NEED such a thing.  Game pricing will and should go up.  Companies are relying to much on amount of sales versus quality of product pricing.  If a product is made well, there is no reason it needs to be $1.

    Why is it that we are so okay with buying 40 dollar console games, or 99 dollar applications if it’s for a computer, but for an iPad or any tablet computer for that matter – is it such a crazy concept?

    Justin Esgar
    CEO
    Autriv, Inc

    • kibbles

      because the depth and scope of a game designed for a desktop or console will be much richer than that of a 3.5″ handheld device?

      • http://www.autriv.com Justin Esgar

        Kibbles – over time that will change.  Look at Infinity Blade for example – the richness is there – or any of those racing games.  Why not charge 40 bucks for those.

  • Anonymous

    I think that we will see higher priced games in the future because they have the clout to demand that price. Joe Q Nobody can’t pull off asking $20+ for a game but Sega could if they ported older titles, same for Nintendo etc. In fact I know a lot of folks that would love to see Nintendo shut up all the ‘they are afraid of Apple’ folks by porting the early Super Mario Bros games and other titles for the ipad. Make a little money off stuff that is just collecting dust in a vault somewhere.

  • mrkwst22

    Poor grammar and spelling notwithstanding, previous comments miss the entire mechanic of iOS gaming: the consumer will set the price not developers. 

    The entire gaming system used within iTunes is almost a purely capitalistic one, being overseen by a benevolent and for the most part benign dictatorship. If any app, especially games, are worth $10, $20, or any higher price, it will be paid for by app users. But to say that dev’s can by fiat raise app prices across the board is pure fantasy. I have over 3000 apps of all genres and have not paid over $5 for any one of them. I have more excellent games than I have the time to play. I am not alone. In fact, I am probably at the center of the demographic. If you, as a dev, want us to pay $40 for a game, it had better be one hell a of a game because you have no “right” to my $40.

    I would have thought the “Angry Birds” phenomena was THE teachable moment. Guess I was wrong….

  • http://twitter.com/feralchimp feralchimp

    Everyone’s a great economist when they’re describing what they personally would or would not charge/pay for such-and-such a product.

    Angry Birds is a data point, no more and no less.  iOS-exclusive sequels to Grand Theft Auto, Red Dead Redemption, or Call of Duty would be very different data points.  Not coincidentally, a description of why those titles aren’t available for iOS is a concise description for why we don’t see expensive iOS games (and to an extent, expensive software in general) on the App Store.  

    The short answer is: “Risk.”  The longer answer is: “Risk plus bad device ergonomics for combining complex displays with complex inputs.”

  • Wierdninja

    $40 for an iPad or iPhone game.  Would never sell.  There’s already an ecosystem in place that proves it won’t happen.  Look at the price structure now.  How can anyone charge 8 times the going rate for a great game on iOS?  Dream on.

  • http://www.gravitycollapse.com suzerain

    The $40 price point on consoles is artificial price gouging, pure and simple, just like the $15 price point on audio CDs, or the $20 price point on DVD movies. The only reason you’ll pay $50 for a PlayStation game is that you have no alternative.

    Essentially those systems are artificially controlled by hands-on dictatorships, and the industry colludes to keep prices at that level. What’s going on on the App Store is that big-ass companies are having to compete against 1, 2, 3 person teams, which they do not have to do on, say, XBox 360. So unless the tiny companies are kicked out of the App Store, price points on games will be lower there, because the ecosystem is more diverse. It’s just simple economics.

    In other words, the Take Two guy is letting his desires get in the way of his good sense.

    • http://twitter.com/Moeskido Moeskido

      Another high-overhead developer of console games predicts the iOS game market will come around to his way of thinking.

  • Manihani

    As far as I know, Apple does not set pricing for the apps that get approved, please correct me if I am wrong, so if a developer wants to do the work to justify a higher price or if they just want to try and extract a little more compensation from the system then they are welcome to.

    I have paid more than $9.99 for a few programs, but only on the basis of a predetermined need and knowledge of the capabilities of a program. The ratings system on the App Store seems totally random, so I would never pay a large price for something that “could” be good. The typical 10 level game isn’t a more than $4.99 value and no amount of wailing and gnashing of teeth is going to make it so.

    The supposed reduction in piracy on the App Store is supposed to eliminate the “need” for higher pricing to cover the piracy going on in the off-line gaming industry and the online subscriptions are supposed to (more than) cover costs for the on-line/interactive games. I’ll admit that I am not a gamer, but my son is and he is much more into the online/interactive type of game and those are free to get, but the money is made on the monthly game community server subscription fees.

    Value *can* be extracted where it is provided, and relatively easy too…