Strauss Zelnick, CEO of Take-Two Interactive, said he believes video games should be priced differently depending on “expected entertainment use,” also known as the length of time it takes players to complete them.
When it comes to video games, the length of the experience can range from 10 hours of content to a few hundred. Open world games like Baldur’s Gate 3 offer hours and hours of replayability while other, more streamlined experiences opt for a concise approach instead.
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As a result, the topic of games being sold at full price despite these length differences has become a hot topic of discussion in recent years across the industry.
ringing in, CEO of Take-Two InteractiveStrauss Zelnick added his thoughts to the mix, arguing that games should be priced on an hourly basis.
Rock Games Take-Two Interactive publishes many popular games including the GTA series.
During the earnings call for Take-Two Interactive’s second quarter of 2024Zelnick explained why we believe video games should be priced according to the amount of time players will need to devote to them.
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“In terms of pricing any recreational property, the algorithm is basically the expected recreational use value, which means the value per hour multiplied by the expected number of hours plus the final value the client realizes in the property if the title is already owned, not, say, Rented or shared.
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“And you’ll see that applies to all types of RVs. By that standard, our front-line rates are still very low because we offer long hours of engagement.”
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The CEO then added: “This does not necessarily mean that the industry has pricing power or wants to have pricing power. However, there is a significant amount of value being offered.”
While a formula like the one Zelnick suggests doesn’t currently exist, there’s no telling if the games will be priced in relation to their future use. Some MMOs are already somewhat consistent with their premium subscription models, but this approach has not been adopted by more standard multiplayer offerings yet.
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This probably means that when GTA 6 eventually hits shelves, we’ll see it arrive at a high price given how ambitious the experience is expected to be.
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