The head of Embracer, Lars Wingefors, was recently showcased in an interview with GamesIndustry.biz concerning the progressively demanding reality of top-tier game development.
Shortly after Embracer’s annual financial report for 2023-24, it came to light that the reboot of Alone in the Dark fell below the group’s expectations. Wingefors, in the interview, vouched for the game’s quality but highlighted the necessity to attract the required number of consumers.
I believe Alone in the Dark was a top-notch product, and the developers put their all into delivering that. It’s truly unfortunate to see that it didn’t capture enough consumers out there willing to re-engage with that IP and product. It’s a harsh reality. It was a substantial investment and, in the end, we need to get those right. It’s quite challenging… Ultimately, games are a commercial industry, and we need to generate revenue to sustain and grow, and ultimately we need to discover that consumer.
On a broader scale, the Embracer CEO pondered over the option of increasing the prices of high-tier games. He suggests that, with escalating development costs, studios may be compelled to go down that route or opt for developing shorter games.
It has been difficult to hike prices in premium PC/console games. The prices of these products have remained unchanged for many years, which indicates that the room for success is narrower, and additionally, there are higher capital costs involved.
I’m not stating that it’s impossible to raise the price. However, the reality is that no one has attempted it. If, for example, you create a massive RPG with 100 or 150 hours of gameplay, highly polished, and offering a unique experience, would consumers be willing to pay more? If they are, there could potentially be more such products entering the market. Yet, no one has ventured into it. This is a topic we have been deliberating on, but presently, we are adhering to the industry norms. Could there be a company in the future that dares to increase pricing? That remains uncertain.
I firmly believe there are consumers ready to immerse themselves in those exceptional RPGs and other solo player games, and ultimately, they are willing to spend on them. Should you increase prices, or should you trim down game lengths? I think there are solutions. It would be a great loss if everything shifted towards large multiplayer titles with in-game monetization. There exist millions of consumers who are eager to engage more with traditional games.
Most publishers have actually upped prices from the standard $60 to $70 in the past few years. Nevertheless, it holds true that prices had stagnated for decades before this recent increment.
Faced with the dilemma raised by the Embracer CEO, would you opt to shell out more for a high-tier individual player game, or would you be content with shorter games at the current pricing? Share your thoughts in the comments and participate in the poll above.
