Murad Ahmed, Technology Reporter
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Video game fans can expect to pay more for their favourite games after a major publisher announced a significant price-rise for the most eagerly awaited title of the year.
In a move that is being hotly debated within the games industry, Activision, the company behind Call of Duty: Modern Warfare 2 let it be known that the much-anticipated game will cost £55 — a rise of £10 on the usual price.
Analysts said that the move had taken many by surprise considering that the games industry was trying to weather the effects of the recession. Others within the industry are watching closely whether the game will continue to be a success despite the increase of nearly 20 per cent.
“This is very much an experiment by Activision, but also the games industry as a whole,” said Johnny Minkley, the editor of Eurogamer TV, an online video website.
“Modern Warfare 2 is arguably the biggest release of the year, and Activision is asking, 'can we get away with charging a tenner more?' Unless there’s a significant consumer backlash, I wouldn’t be surprised if others followed suit,” he added.
Modern Warfare 2 is the latest edition in the hugely popular Call of Duty franchise. The game will put players in the position of Special Forces soldiers, running and shooting their way through fictional modern-day conflicts across the Middle East and former Soviet states.
It will be released before Christmas, so it is the wallets of parents buying the most-desired games for their children that will be the hardest hit. A survey from Nielsen, the market researcher, showed that parents were most likely to buy the game, followed by men aged between 18-24.
The last instalment of the franchise, Call of Duty 4, was the biggest selling game of 2007 with more than 7 million copies being sold worldwide.
Activision said that it would not comment on pricing strategies. But the company has previously sold its most popular games, such as Guitar Hero, at premium prices. However, the added cost of that was justified at the time because the game came with plastic instruments to play with.
In the past few years, the games industry has followed the example set by Hollywood studios, relying heavily on sales from major blockbusters laden with special effects. Major titles, such games franchises like Call of Duty or Halo, have the production values and cost similar in scale to making a major motion picture. Experts said that the latest Call of Duty game has cost tens of millions to make with hundreds involved in its creation.
Publishers sympathised with Activision’s experiment, pointing out that their operating margins had been dented by the poor exchange rates with the pound. Nintendo said this was the reason it had to raise the price of its Wii games console earlier this year.
“There has been anger about it from fans, but this is not entirely unfair,” said James Lee, a games industry analyst and commentator. “Video game development costs have increased, and the depreciating value of the pound has had an effect.”
Privately, retailers are said to be wary of the decision, as their businesses have increasingly relied on sales of video games. Last year, sales of computer games overtook those for music and video for the first time.
While the music industry has been beset by piracy, and the price of DVDs has dwindled, the gaming market grew by 42 per cent in 2008. Game sales were worth £4.6 billion, compared to £4.5 billion for music and video combined last year, according to figures from Verdict Research.
A spokesperson for HMV said: “Obviously [game makers] charge what they feel is appropriate, because they also know how much they have to invest in the game. But we have to be as competitive as we can as well.”
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