Why Digital Game Prices Are Going Up, Too

Microsoft just joined Nintendo in announcing that some of its games will sell for $80, and this new rate will seemingly apply to both physical and digital games. The price hike is inspiring a lot of debate and discussion, with some wondering why the price of digital games is going up. Many might be able to understand why a disc-based product might go up in price due to tariffs and other market factors, but why would digital games get more expensive, too?Niko Partners analyst Daniel Ahmad said it's true there is no "direct" tariff impact on digital games, but publishers may choose to raise prices anyway for a variety of reasons. To begin with, raising the price of a digital product could help offset rising costs in other departments, he said. Second, a publisher might raise the price of a digital game to bring it in line with its physical counterpart.Other factors could be that a game's price is going up to reflect the increased cost to develop a particular game, along with a belief that people will, in general, accept the price increase. Lastly, a publisher might decide to charge more for a digital game "because they can," Ahmad said.Continue Reading at GameSpot

May 1, 2025 - 23:06

Why Digital Game Prices Are Going Up, Too

Microsoft just joined Nintendo in announcing that some of its games will sell for $80, and this new rate will seemingly apply to both physical and digital games. The price hike is inspiring a lot of debate and discussion, with some wondering why the price of digital games is going up. Many might be able to understand why a disc-based product might go up in price due to tariffs and other market factors, but why would digital games get more expensive, too?

Niko Partners analyst Daniel Ahmad said it's true there is no "direct" tariff impact on digital games, but publishers may choose to raise prices anyway for a variety of reasons. To begin with, raising the price of a digital product could help offset rising costs in other departments, he said. Second, a publisher might raise the price of a digital game to bring it in line with its physical counterpart.

Other factors could be that a game's price is going up to reflect the increased cost to develop a particular game, along with a belief that people will, in general, accept the price increase. Lastly, a publisher might decide to charge more for a digital game "because they can," Ahmad said.Continue Reading at GameSpot