You, or someone close to you, are probably a lover of video games. Video games are not just for kids anymore. Many people choose gaming as a career. E Gamers play in contests that bring in big money. Other video game careers can include:
⦁ Game testers
⦁ Game designers
⦁ Game writer
⦁ Game producers
⦁ Audio programmers
⦁ Video game artists
Statista.com reported an estimated 71.4 billion video game players in the world. The UK accounted for 31.6 million of those players. The billions these players pour into the world of electronics is staggering. It takes big money to have the best consoles on the market with the best designers, programmers, and sound effects pros. To make a cutting-edge game it takes a deep knowledge of other games, war, fantasy, sports, and other genres. These professionals are in high demand and very costly. Their salaries are not being paid from video games that are sold at $60 dollars per game charged for the game in the US.
Why are video games priced differently in the US and the UK?
Until recently, in the US new games were always $59.99. The only exception is for very large chain stores that are willing to pass on their meagre profit to the consumer for sales (like Black Friday) to get them into the store for more profitable sales. The only tax that is applied is a point of sale tax which is determined by each state.
The price of the games in the UK would (as in the US) remain the same if the tax policies were the same in both countries. But, they are not. Consumers in the UK are charged taxes and tariffs on electronics. There is also the exchange rate to contend with. Video games fall into the area of electronics. This is what causes the difference in prices. Again, some very large vendors may mark their video games down (giving away their profit) just to get the consumer to buy in their store.
Was this the plan?
No evidence tells us Microsoft, Sony, or Nintendo expected this to happen. Neither did those that came before them. The video market began like any other industry. The machine was made, then games were made to play in the machine. But, that is where things took a unique turn.
Look at this article where Lottoland explores the history of video games and you will see. Lottoland is the leading online betting site and industry leader in the UK. While Lottoland is a worldwide lottery provider, they are also providers for gamers of all types.
Suddenly, people were getting tired of playing limited video games that were available at home. Companies were getting in the business from everywhere, and the competition was fierce. Video games you could play in an arcade or at your local pizza place were a great hit. Video games were being developed but they cost a lot of money. The cost of producing them was expensive. But it was not the games vendors had to sell, they had to sell their machines to the public. They had to make parents believe that their machines were worth the price of these expensive machines. They had to make them more desired than all the others that were popping up. The evolution of the video game industry brought the solution to the public.
In 2020, the three major video game makers are still Microsoft, Sony, and Nintendo. Each of these companies has a top of the line video game system and a hand-held system. They all have top-of-the-line games that are sold at extremely low prices.
If video games cost more to make, why do the prices never go up?
There are two sound financial reasons why manufacturers of video consoles don’t care if they are “giving away” video games.
⦁ Loot Box
⦁ Most video games have the option to buy a “Loot Box”. This is a box that has something you need to help you through the game. There are other items that you can buy in the game. These items are bought. They are bought with real money. People pay with PayPal, or they buy cards that have currency for the game. When a gamer has reached his limit of frustration he will buy the item he thinks will get him past a certain level. This turns into billions in cash that goes into the vendor’s pockets.
⦁ System upgrades
⦁ Manufacturers do not have a formula that assures them of when a new system can be released to the market. It is important that they time it correctly. If they release systems too close together, consumers become frustrated as they are still investing in the current model. The 3-5 year window seems to work well. However, as gamers reach adulthood, manufacturers may have a new competitor to consider.
Prices are going to $69.99
With the introduction of the Playstation 5 and the Xbox S/X in 2020, some new game titles have come in at $69.99. These are the 9th generation of video consoles. The $59.99 games were put out with the 7th generation consoles which were the Xbox 360 and Playstation 3. Video games have come a long way since then. They require a lot more effort and expertise to create. It is expected that any games coming out from here and forward will have the $69.99 price tag.
Video Game Gambling In Casinos
‘Millennials’ grew up with video gaming. They are not intimidated or afraid of playing the games. They may like to play Video Poker, Slots, or Black Jack, but they will not hesitate to play a skill-based game with partners either. Gamers and video gamers are evolving and the casinos are ready to take on the challenge.
The new decade promises to be filled with growth and change in many industries. These two industries have been preparing for the change and welcome its arrival. While there may be some minor price changes, they are minimal and well worth the significant value you get with new and current technology.