
Super publisher reassures retail over Modern Warfare 2's £54.99 RRP
Giant publisher Activision has defended its decision to slap a £55 RRP on Call of Duty: Modern Warfare 2, insisting the game justifies the price tag.
Some retailers had previously expressed concern to MCV over the effect the price – which is £5 more expensive than regular Xbox 360 and PS3 titles – would have on cash-strapped consumers over the Christmas period (MCV 17/07).
And Activision is set to launch a series of premium-priced products this Christmas, including DJ Hero and Tony Hawk: Ride, both of which come with peripherals and cost around £100.
However, the firm finally broke its silence on these controversial price points this week, reassuring the trade it was confident that consumers will pay premium prices for these games – and still feel they were getting bang for their buck.
“The question is what represents value for money,” Activision’s UK managing director Andrew Brown told MCV.
Advertisement
“At the end of the day, there is a spectrum of what people can afford and what people are prepared to spend. These things are key.
“Is what I am buying supplying me sufficient value for money and can I afford it? If so then I will buy it.
“This is an industry where things cost a lot to develop and it’s a risky business. We talk about building franchises; it is very expensive to do this from every respect. What we are finding is that for the right products, if you look at the time someone will spend playing something and compare it to something else, people are saying it’s worth it.
“There’s nothing in life that isn't price elastic. Price at retail changes all the time depending on how successful a product is or isn’t. I think there is a lot of controversy over I don’t know what.”
Brown’s comments echo similar opinions from fellow publisher bosses, whose products are feeling the pinch from tough exchange rates and record development costs.
One figurehead at a publisher’s UK HQ added: “If you look at the amount it costs to see a movie at the cinema or play a DVD, you watch it once and you’re done. A £55 game is far better value for money.”
Call of Duty: Modern Warfare 2 is released on Xbox 360, PS3 and PC on November 10th. MCV revealed last week that it will be backed by a heavy-duty marketing push.
Comments
pricing
i won't be buying this game. the first modern warfare was great but £55 is too much and then there will be the dlc on top of that!
Thanks but no Thanks
Rip Off
This the reason I hope the Supermarkets are going to release it at a low price.
£55 is way too high a price for Modern Warfare 2. Just because they know a game will sell doesnt mean they can slap anyprice they feel like onto it.
Greedy Evil Activision
Activision has well and truely taken the crown from the recently reformed EA as the most 'evil' publisher in the industry!
The sad thing is this game will sell regardless and it will send a signal to the industry that this price is acceptable - but the question is what game will people forgo to pay for it (probably why so many games are being delayed to 2010). We already pay more than USA and Japan, so a further increase is hard to swallow.
The CEO of Activision is an insidious cancer in the gaming industry and he needs cutting out sooner rather than later - he's all about over priced games, over priced DLC (Guitar Hero track = £1.59, Rockband track = 99p), reduced production costs/values, increased profits, and removing the fun out of the games industry (his words).
If it was left up to this guy we'd all be paying £100 for an annual installment of essentially the same game every year with no innovation or creativity - because it's more profitable to milk a franchise and allow you to create your own game online than it is to innovate and have a strong single player story. I wouldn't be surprised if they didn't announce the inevitable (and probably already finished) DLC map packs will increase in price to £10 each too...
Online modes are not a subsitute for innovation and good story telling, nor does it justify an increased price just because it will allow you to play it longer. Comparing it to movies is stupid because the user base is much bigger - it's economies of scale. As gaming increases in popularity the price of games should go down not up - movies have several revenue streams from cinema to DVD/Blu-ray to TV broadcasts, and even though the budget of an average blockbuster movie dwarfs the average game it is still much cheaper to watch a movie.
All that will happen by increasing the RRP of games is it will increase alternate ways to get them - be it trade-in games, renting games (which many places now offer), or by piracy. Surely all of these methods damage the industry more - and all for making a quick buck cashing in on a hyped game.
If it carries on people will just move to a monthly fee rental model, and that will not be able to sustain the industry in it's current form.
£55? Erm no.
Where do you people shop?
Who actually pays the RRP nowadays? Granted it's still £45 on most sites but I don't think I've seen it listed at £55 anywhere.
Planet Cuckooland
Hopefully this will be £25 or £30 in the supermarket, otherwise the market will be flooded with pre-owned as the average punter tries to afford this preposterous price. Perhaps Activision should spend more time in the gaming forums - their name has become a swear word.
neo geo?
Slightly different scenario to now but I remember having to rent neo geo Carts rather than buying them. The same with some Ninty and Sega stuff from back in the day. Most of us will remember that N64 carts were fairly expensive here in the UK.
Anyway moving on.
Games are typically more expensive here in the UK than the states. I would assume currency fluctuations and other expenses borne by publishers here in blighty are the cause of this. At the moment Games in Europe would be similarly priced due to euro/pound exchange rates. We have to live with this fact so lets move onto another point.
Value For Money: T. I think that £55.00 at RRP is probably about right, if the game delivers what is promised. Consumers will determine if it offers value for money at this price point.
Milk That Cow Kotick
We all know Game and Gamestation sell there products at full market value mot of the time. With a title as strong as this they would be insane to lower it's price. We are guaranteed impending stock shortages and ebay price tags of £150 so what reason would anyone have to sell this game for less than £54.99?
I have boycotted Activision since the early summer and have found that, Rock Band is a far superior game to Guitar hero. I am sure we can find alternatives to all of Activision's titles. I love the multiplayer aspect of Uncharted 2 and team fortress 2. Why not play these? Or try he new operation flashpoint? Surely Activision haven't found the holy grail of gaming. We need to show them that we will not stand for this unfair profiteering. The stores will not make any more profit from this title just Activision! Please hold back!
Just shop around...
Whilst I agree that the £55 RRP is excessive and I'm no fan of Activision for either their pricing policies or Bobby Kotick's general attitude to the industry, I actually don't think that bumping the RRP up will be a problem for consumers in reality.
Personally I've already pre-ordered a copy of Modern Warfare 2 (PS3) for £35 courtesy of Tesco online which I think is a perfectly reasonable price to pay given the value I expect to get out of the game. And given what happened for the recent release of FIFA 10, I think it's highly likely that we'll see exactly the same discount from RRP being slapped onto Modern Warfare 2 on release day in-store at the main supermarkets.
That's unfair to the indie trade, I know, but basically no consumer should ever really expect to pay RRP for a game and I'm sure Modern Warfare 2 will be no exception.
We'd all benefit from fairer, realistic pricing where RRPs were broadly maintained, but lowered to a sensible level (say £30-35) but until that happens you really can't blame either consumers or supermarkets for doing what they do.
A saving for me and friends lol
Everyone has thier point of view on this as to what causes concern for them. Mine, is that other AAA titles like Bioshock 2, Mass Effect 2 etc. (all rehased IP's like MW2) have all been shifted later down the line to accomodate this price hike and the fact that its "MW2." Dont believe the hype on people saying "It gives us extra time to polish it up" from what I've heard down the grapevine, the developers on each respective title have been given some slack, and have had an easier time of it of late and have seen more of their families and friends lol.
I don't know why Kotick has ramped the price up by five quid, he knows gamers will play this incessantly, will buy the DLC to lock themselves into the purchase (you wont see many copies on the second-hand section of game) as they will want to keep up with their mates on the maps etc.
I will be getting this game naturally, more to do with the fact COD WAW didnt match COD4. I know MW2 wont be this innovative masterpiece, but more of the same, which is what I want. However, I have changed my spend strategy to incorporate it. This summer, I had spare pounds in my pocket for a plethora of games, but only bought one (Arkham Asylum). Now crimbo is near here, bills are due, presents must be bought etc . . . . .MW2 will be the only game I will buy. Forza 3 etc. will have to wait unti lthey are cheaper on Amazon or play.com. And Mass Effect 2 will have to wait also. I dont think I can be bothered to go to my local supermarket at 12pm come release day. Its the biggest tilte of the year, and Activision have us by the short and curlies on this one.
Shop around...
..for the best deal! Here's hoping the prices drop further.. if you want to guarantee a copy pre-order:
http://www.gamecrawler.co.uk/search-results.php?title=Modern+Warfare+2
..failing that, wait for the press ads to show you were the best deal will be (likely Tesco, Asda or Morrisons)
Pricing
Who are we to tell people what they should be charging for a product.
Obviously, costs for producing top range games are rising. If we are to have a thriving industry we need this development to continue.
Wii has lower RRP games - Hmmmm, great quality aren't they?
It will sell like hot cakes
It will Sell Sell Sell Sell and Sell some more i have no doubt it will be the biggest selling console game in history.
There will be very little second hand lurking very much like CoD 4 is rare to see used.
oh did i say
It will Sell Sell Sell and keep Selling.
Hands Up
who thinks that while dropping puppies puppies in boiling water Bobby Kotick stopped and said 'guys, MW2, £55.00 In the UK,..make this happen"?
Lets put it this way does anyone think Kotick, on his own, on a whim decided to up the RRP on MW2 and the other products?
We are all Dooommeed
Hey lets all calm down if every game was this good it would be a great world!!! Make as much as you can b4 we all go download crazy!!! Pay per play anyone?! You can get it for 39.99 so calm down kids....
GOTY Edition
Just wait till the Game of the Year edition gets released, then the add-ons are usually included with the game, that's what I will be doing. Although saying that, the game of the year edition, a game only gets if the game itself is successful
well
we have over 200 pre orders on this title already, but we wont be stocking dj hero or ride, sick and tired of activision and there game add ons, will only do them to order with deposits, mw2 would sell regardless of price, but the uk is one of the most expensive for games, always been this way
Whinge Whinge
People, stop being such peasants. MW2 has earnt its right as the pinnacle of all games and if this can't command a measly £5 over retail, what can? Nobody seems to appreciate the costs involved in Developing games these days. Back in my Codies days we would have to sell a million units of a Colon Decay DIRT just to break even Worldwide. Too much? Play MW1 or something else. I think it takes cohoonas to raise a RRP when everyone is skint, but it means Infinity Ward will hopefully carry in making stonking games for us. Peace
Et la marmotte elle met le chocolat dans du papier alu ?
Faut arrêter de prendre les joueurs pour des jambons! Le jour où Activision m'offrira le PC qui me permet de jouer alors il pourra augmenter ses prix en attendant il aura pas un cent de ma part sur des jeux vendus à un prix qui selon moi vise à prendre clairement les gamers pour des pigeons
MOD 2
@ Matt Davies
Not exactly a new build from the ground up regarding the games engine. I've seen new perks, new maps and slightly better graphical effects here and there, but other than that I've seen nothing remotely worth the £54.99 RRP. It simply boils down to Activision being greedy bastards. But then, as already stated it will sell well.
Now this is one title that is primed for supermarket shelves. I certainly wouldn't pay any more than £25 for it personally.
Kottick is an ass
Activision used to make original games but all I seem to see from them are now continuous sequels, I am not saying I hate COD, I love the series but come on we are on Guitar hero 5, Tony Hawks 10 and to top it off COD:Modern Warfare 2. I don't want to see next year Guitar Hero 6 with like trumpet added on it or Tony Hawks with a crash helmet or something.
I am disappointed that Kotick has decided to milk a franchise, I personally hope Activision fire him and start bringing out original titles and stop ramping up prices.
I havent bought an activision game since COD: Roads to victory for the PSP and thats saying something for someone who likes the COD series!
@11
J said: Who are we to tell people what they should be charging for a product?
The consumer, J, the very people who pay for these products and without us buying these products these people dont have a business. We have every right to question price hiking and price fixing.
Hypocritical
It seems to me Activision are being hypocritical. Wasn`t the CEO the same guy who demanded a PS3 price cut for Sony. Yet he feels paying £55 for a game is jsutified to those same cash strapped gamers (by the way I have never seen a RRP of £50 in any store, so if this indeed gets an RRP of £55 then it is more than just a £5 hike).
I will buy it online (where it is genuinely £5 more than the average game) because I loved COD4 but I will wait until I have finished with Uncharted 2, Sigma 2, Demon Souls.
Fed up with all your whinging
Can't believe all this furore over £5.
If anyone had any commercial acumen, they'd understand that 1/ Activision UK make money in £, but will report on $ as they are a US company. Has anyone else noticed that the pound is at 1.6 dollars to the pound and not the $2 to the £1 it was for much of last year? This will leave Activision UK with a big whole to fill through no fault of their own.
2/ As the UK MD guys is saying, like most things in life you get what you pay for. If MW2 is the amazing game it looks like it will be, then it's going to be worth any penny.
I pre-ordered my copy in May and have November 10th booked off work. Fair play to the studios and publishers who can crank out incredible games. Why shouldn't ehy make some money in the process.
Why should they !
Just as FIFA proved last week, Activision have thought, "retail will slash the price so why should we, better still lets put some on"
EA used it to their advantage on the PS2, they were still retailing at £40 because they knew retail would bring it in line at £30 everyone else was selling games for.
The sooner we forget about retails and a straight trade price the better.
By the way, I wont bother buying from Centresoft any EA titles , ill go and join the queue at the supermarkets, best margin ive had out of EA for years.
COD
"Can't believe all this furore over £5."
And I cant believe your saying that. Regardless of the product it's a lot of money to shell out. It's also worse knowing full well the extra £5 is pure greed on the part of Activision.
There are deals online
I bought my PS3 version online, from TESCO Direct, for £34.99, standard edition. That deal expired ages ago, but just shop around on the net, don't feel you have to pay over £50 for a massively overhyped game.
Leave a Comment
HOT TOPICS
Microsoft hails its ‘killer weapon’ in battle with PS3 and Wii 79
The Producers pulls out of Trilogy partnership 30
Xbox Live class action begins 17
The Hut rebuffs AC2 date break claims 14
MW2 sales pass $550m worldwide 13
60% of UK 360s have failed 13
Facebook hitting PS3 today 8
Call of Duty inspires new retailers 7
Bayonetta nabs rare Edge 10/10 6
War crimes in games are ‘astonishing’ 5
RELATED STORIES
Kotick: All consoles must hit $199 in two years 5
We didn’t fancy Take Two, says Kotick 2
Activision snaps up Kung-Fu Panda 1
$1bn MMO still couldn’t touch Warcraft, says Activision 7
Wii Guitar Hero to ‘get more physical’ 1
Kotick: We're competing with Facebook 6
Economy will force console prices down, says Activision boss 1
Kotick: ‘I’m worried about EA/Take Two’ 1
Activision enjoys $345m profit in FY ‘08 1
Activision boss calls for console price cuts 6
ABOUT US
MCV is the leading trade news and community site for all professionals working within the UK and international video games market. It reaches everyone from store manager to CEO, covering the entire industry. MCV is published by Intent Media, which specialises in entertainment, leisure and technology markets












