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Former PlayStation Boss Says $5 Price Hike Should Have Been “Baked In” To Every New Gen


Summary

  • Shawn Layden supports Nintendo Switch 2 game price hikes, stating prices should have increased with each new console generation.
  • Layden points out games are still relatively cheap when adjusting for inflation since 1999.
  • Nintendo’s protection of first-party games makes it easier to accept higher prices on Switch 2 compared to other consoles.

A former high-ranking PlayStation executive believes that price hikes per game, including those related to the Nintendo Switch 2, are long overdue. Some Nintendo fans have been upset at the prospect of new games on the Nintendo Switch 2 costing more than they have in the past, but former Sony Computer Entertainment president Shawn Layden feels each new console generation over the past few decades should have increased the price of games.

Shawn Layden left Sony in 2019 after spending more than three decades working for the company. He began his career in 1987 with the corporate communications department in Tokyo, becoming vice President of Sony Computer Entertainment’s London studio in 1999 and serving as president from 2014 until his departure from Sony.

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In the wake of news that Nintendo Switch 2 games will be more expensive than those currently being offered on the original Switch, Layden appeared on a recent episode of the Player Driven YouTube channel series to offer his perspective. “I think Nintendo’s just pulling the Band-Aid right off and saying, ‘looks like it’s 80 bucks for a front-line game on a new platform,'” he commented on the price hike. But rather than criticizing Nintendo, as much of its player base is, Layden offered praise for the price increase, saying it’s something industry officials, including himself, have put off for too long. Rather than hitting players all at once, though, he feels each new console generation should have “baked in” a price hike of $5 per game.

Former PlayStation President Approves of Switch 2 Game Price Hikes

When accounting for inflation, Layden pointed out, video games are actually significantly cheaper than they have been in the past, saying “$59.99 in 1999 is equivalent to, like, 100 bucks.” U.S. inflation since January 1999 has risen by 94.54 percent according to the U.S. Bureau of Labor Statistics, which actually puts Layden’s estimate almost $17 under the actual current amount adjusted for inflation. While those numbers may be hard to stomach in light of the current downturn in the global economy, fellow guest Lewis Ward of IDC research pointed out that the cost of making games has been rising at a much higher rate than the prices consumers pay for them.

Nintendo is in a better position than Sony and Microsoft to raise the prices of its games, Layden indicated, because it has done a better job of protecting its first-party titles from cross-platform play. Games featuring Mario, Donkey Kong, Link, and other popular Nintendo icons don’t often appear outside Nintendo-brand hardware, and he feels that will make the $80 price point more palatable on Switch 2 than it might be on other consoles. That line of anti-cross-platform thinking seems in direct opposition to Microsoft Gaming CEO Phil Spencer’s strategy regarding developer showcases, which have, as of February, begun displaying platform availability other than Xbox in its trailers.

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