Game sales up 16% in October on lower average price

Justin Murray
J. Murray|11.10.06

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Game sales up 16% in October on lower average price

On the heels of THQ's quarterly report comes some more positive gaming news. According to the NPD Group the gaming industry has posted a 16% jump in software sales. An interesting trend noted by the NPD Group is the average price of games sold has declined by $2.40.

The decline in price could be confusing to many gamers, especially those staring down the $60 price tags on new Xbox 360 (and soon to be PS3) games. The decline in price was due mainly to the fact that new release PS2 games are now in the $40 range and six of the top ten software games were for the PS2 (the top ten was rounded out by three Xbox 360 games and one Xbox game). If the revenue is up and the game prices are down this means that unit sales are WAY up.

The data pokes in the eye the argument that next-gen software needs a $60 price point to make a profit. If PS2 games are selling for $40 -- and selling well at that -- keeping $60 price tags emblazoned all over our precious games is absurd when gamers are clearly buying $40 merchandise in droves. By selling next gen software at even $50, gaming companies can easily use economics of scale to their advantage. The increased production costs can easily be drowned out by more sales generated by a lower price point. Stop gouging us guys ... you know you can make a profit without that $60 price tag.

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