Key Insights
- Shawn Layden advocates for higher game prices with the launch of the Nintendo Switch 2, suggesting a gradual increase in line with console generations.
- He notes that when adjusted for inflation, video games remain relatively inexpensive compared to historical prices.
- Layden argues that Nintendo’s control over first-party titles facilitates acceptance of increased prices for Switch 2 games, setting it apart from competitors.
Shawn Layden, a former executive at PlayStation, has expressed that the gaming industry has delayed necessary price adjustments for new titles, particularly regarding the anticipated Nintendo Switch 2. While some Nintendo enthusiasts are frustrated by the potential cost increase for new games, Layden believes that pricing should have reflected advancements in console technology more consistently over time.
Having spent over 30 years with Sony, Layden’s career trajectory began in 1987 and saw him rise to president of Sony Computer Entertainment before departing in 2019. His extensive industry experience provides him with a unique perspective on pricing strategies within the gaming market.
In light of recent discussions about price increases for games on the upcoming Nintendo Switch 2, Layden shared his thoughts during a recent episode of the Player Driven YouTube series. He remarked, “Nintendo’s just pulling the Band-Aid right off… looks like it’s 80 bucks for a front-line game on a new platform.”Rather than condemning this change, Layden commended it as a long-overdue adjustment. He believes that pricing should have gradually increased—approximately $5 more per game—with each new generation of consoles.
Layden’s Perspective on Price Increases
YouTube Link
Addressing inflation, Layden emphasized that video game prices, when adjusted for economic shifts, are significantly lower than historical levels. He stated, “$59.99 in 1999 is akin to around $100 today.”According to statistics from the U.S. Bureau of Labor, inflation has climbed by approximately 94.54% since January 1999, highlighting the gap between production costs and retail prices. His perspective aligns with views from IDC Research’s Lewis Ward, who noted that the costs associated with game development have surged at a rate outpacing consumer prices.
Layden also pointed out that Nintendo’s stronghold on first-party titles enhances its position to implement price hikes effectively. Iconic franchises like Mario and Zelda seldom appear outside of Nintendo’s ecosystem, which, according to Layden, could justify the $80 price for games on the Switch 2 more than it would in other gaming environments. This view contrasts sharply with Microsoft Gaming CEO Phil Spencer’s approach, which has leaned towards promoting cross-platform play and showcasing games available on multiple systems.