Microsoft Is Not Ready To Comment On Pricing For First-party Titles, CFO Suggests In Interview


Posted on November 19, 2020 by Nick Moreno

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Alike new consoles, games are also to be expected to play on these newly-optimized machines as well. But one thing that is to change is how much respected titles will cost. It is understand to be a standard now, but games are to be jumping in price. While many see the topic to be controversial in some degree, it is understood by plenty that the industry with more resources invested requires a higher price tag.

Some publishers already ahead of the console giants readjusted pricing for its games in defense of a next-generation upgrade. However, that effect will dwindle eventually leaving new hardware to be the current system. And then, the price will be recognized as the normal as we see with $60 launch prices. But for Microsoft, the decision is not ready to be shared.

Speaking at the recent Jefferies Interactive Entertainment conference last week, Xbox Chief Financial Officer Tim Stewart explains that Microsoft will release the official price for first-party games “in due time”.

I think we’re not making specific announcements on first-party pricing yet. So we’ll do that sort of in due time. Prices have not gone up in — what, for a couple of generations now, so it’s not unheard of to see things like this going on.

And to the point earlier, content creation costs go up. And these publishers and content creators, including ourselves, want to make sure you’re driving the right gross margin profiles, the right earnings profiles of what it takes to build these new, awesome, amazing games. And you want to make sure you have a good top line to support that.

Interesting enough, this is a topic where Sony Interactive Entertainment is more transparent on the matter than Microsoft for once. Earlier this week, it was revealed when speaking to PlayStation lead CEO & President Jim Ryan that he agrees with $70-priced titles. “I think that’s a very straightforward comparison to draw,” Ryan determining the amount of playtime in a game to its worth shared.

In the same interview, Stewart also remarks on the recent acquisition of Zenimax Media/Bethesda. He tells that Microsoft’s ambitions is to emphasize on putting the Xbox ecosystem ahead of competing platforms when it comes to Bethesda releases. You can read the full report by heading here.

Do you think Microsoft will increase its pricing for first-party games?

Source: Seeking Alpha

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