Why $100 Video Games Could Destroy the Gaming Industry

The gaming industry is at a crossroads, with major publishers floating the idea of increasing game prices to $100 or more. With layoffs, studio closures, and cancellations already at alarming levels, is raising prices truly the solution—or will it lead to an unprecedented collapse? This article examines the reasoning behind the push for higher game prices, the economic realities of game development, and why consumers may ultimately reject this shift.

The Case for $100 Games—Does It Hold Up?

Game publishers argue that inflation, increased development costs, and longer production cycles justify higher prices. In 1990, a standard game cost around $50, which, adjusted for inflation, would be closer to $100 today. Despite this, AAA game prices have largely remained between $60 and $70. Industry executives claim this stagnation has led to diminishing returns and financial struggles for major studios.

However, the gaming landscape has evolved dramatically since the 1990s. Unlike in the past, studios now generate revenue far beyond the initial purchase price through:

• DLC and Season Passes – Additional content that extends a game's lifespan.
• Microtransactions – Optional in-game purchases, often generating billions.
• Live Service Models – Games designed to keep players spending over time.

These revenue streams have fundamentally altered the financial model of gaming, making direct price comparisons between past and present misleading.

The Real Issue: Industry Mismanagement

While studios cite rising costs, the root of the issue often lies in mismanagement and bloated budgets. Development cycles have expanded to seven to ten years for many AAA games, inflating costs to unsustainable levels. Some major projects burn through hundreds of millions of dollars, often on unnecessary features such as hyper-realistic water physics or excessive executive layers that contribute little to the final product.

Consider the contrast:

• Kingdom Come: Deliverance was developed for approximately $41 million, according to Forbes and delivered a highly acclaimed experience.

Kingdom Come: Deliverance

+2

$5.54

• Black Myth: Wukong reportedly had a budget of $60-80 million yet showcases AAA-level quality.

Black Myth: Wukong

$36.31

-40%

• Meanwhile, some Western AAA studios spend upwards of $200 million on titles that fail to meet expectations.

These examples highlight that efficient game development is possible without exorbitant costs. Instead of raising prices, studios could focus on leaner production methods, cutting non-essential roles, and ensuring that each dollar spent enhances the final product.

Gamer Backlash: Why Players Won’t Accept $100 Games

1. The Psychological Barrier of $100

Pricing a game at $100 places it in the category of a luxury purchase rather than an impulse buy. The psychological effect of a three-digit price tag will deter many consumers, especially younger gamers who form the core of the gaming audience.

2. Erosion of Trust in AAA Games

Recent years have seen a surge in unfinished, bug-ridden releases requiring multiple patches to reach playable states. Games like Cyberpunk 2077 and Battlefield 2042 launched in poor condition, forcing players to question whether new releases are worth full price—let alone a $100 price tag.

Cyberpunk 2077

+5

$23.99

Battlefield 2042

+3

$4.79

3. Competition from Indie and Free-to-Play Games

Indie games have proven that high-quality experiences don’t require AAA budgets. Titles like Hollow Knight, Hades, and Stardew Valley offer engaging gameplay at a fraction of the price. Free-to-play games, supported by optional monetization, further undermine the need to spend $100 upfront.

Hollow Knight

+3

$7.49

Hades

+6

$9.99

Stardew Valley

+8

$8.99

4. The Return of Game Piracy

Historically, high prices and restrictive DRM have driven players toward piracy. The early 2000s saw rampant music and movie piracy due to overpriced CDs and DVDs. Streaming services like Spotify and Netflix helped curb piracy by offering affordable access. If game prices spike to $100, many players may revert to piracy, especially in regions where wages don’t match Western pricing structures.

Why GTA 6 Might Be an Exception—But Not the Rule

Some analysts predict that Grand Theft Auto 6 could be the game to break the $100 price barrier. Unlike most games, GTA is a cultural phenomenon with mass appeal, ensuring millions of sales regardless of price. However, assuming that all AAA games can follow suit is misguided.

Consumers are selective about which games they will pay a premium for. While titles from Rockstar, FromSoftware, and Larian Studios may command high prices due to their track record, generic or poorly received games will struggle. Publishers banking on a universal $100 price point risk alienating their audience and tanking their sales.

Grand Theft Auto VI

$102.73

A Smarter Path Forward

Instead of imposing a blanket price increase, the gaming industry should consider alternative strategies:

• Regional Pricing Adjustments – Many gamers in lower-income countries simply cannot afford $100 games.
• Quality Over Quantity – Trimming unnecessary expenses and focusing on polished releases will yield better results than inflating budgets.
• Flexible Monetization Models – Offering different price points with optional content can capture a wider audience.

Final Thoughts

The argument for $100 games may seem logical on paper, but in reality, it ignores market psychology, consumer expectations, and alternative revenue streams. If publishers push forward with price hikes, they risk driving away customers, increasing piracy, and accelerating the industry's decline. The path forward isn’t about charging more—it’s about delivering better experiences that justify the cost. Otherwise, the gaming industry may soon find itself facing its biggest crisis yet.