MCV has found out that Activision’s recommended retail price for Modern Warfare 2 this upcoming Xmas season in the UK will be £54.99, a £5 increase. Activision is among the first of the publishers to raise the price for their games, and there’s a high likelihood for other publishers to follow.
The reason behind the increase is the fluctuating exchange rates between the Euro and Pound. Ian Curran, THQ’s EVP of worldwide marketing commented that “Exchange rates between the Euro and the pound are making it very difficult for publishers to show an acceptable operating margin in the UK.” Simply put, the pound is weakening, and prices have been raised to offset it.
A UK boss of a global publisher defended Activision’s decision, telling MCV, “90 per cent of a publisher’s business is done from barely 10 per cent of titles. In these tough times, these games cost a lot of money to develop – up to £50 million. With that pressure to see a return on their investment, I can sort of understand where Activision are going.”
“Will this affect consumers? I don’t think so. If a title is this good, will they spend an extra £5? Of course. You can’t blame Activision. They’re entitled to do this – they’ve invested huge amounts.”
Hopefully too many publishers won’t follow suit. As much as the raise can be justified, everyone likes saving money.