Analysts say: $60 price not sustainable
Apparently some guy from a German bank thinks that the recent price drop on Madden, Tiger Woods, and FIFA means that the $60 price of next gen titles will not last long as customers wait for price drops before buying their games. Take this, from Gamedaily.biz, with a huge grain of salt.
According to analyst Jeetil Patel of Deutsche Bank, “either the industry is still in transition, or $60 pricing is not sustainable.” Patel pointed out that in the past cycle, price cuts on Madden didn’t occur until at least April. “In this new cycle, we think it [is] critical that $60 next-gen prices last at least as long as $50 prices did in the prior cycle in order to compensate for steeper development costs, a tougher competitive environment (which requires more marketing spend) and so that EA can replicate the 27% operating margins seen in FY04,” Patel said.
Whatever. Just because EA has dropped the price on soon-to-be-obsolete sports titles, I’m supposed to believe this is the beginning of then end of $60 games? Right. Just wait until Halo 3 is released.
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