In an earnings call discussing Ubisoft’s financial results for the third quarter, Chief Financial Officer Frederick Duguet revealed that the company is still undecided about raising video game prices.
As reported by Video Games Chronicle, Duguet said that Ubisoft has been “analyzing the competitive dynamics of the past quarter and we are still looking at new opportunities, but we have not made any decision yet.” The company has joined a growing list of developers and publishers who are still mulling over increasing video game prices while others, including Sony Interactive Entertainment, have already begun charging $70 for some titles.
Industry professionals have long argued that AAA video game prices have been stagnant for far too long amid rising development costs. There’s also been an industry-wide push to increase employee salaries to reflect inflation and cost of living, making AAA production costlier than ever before. Analysts say that despite backlash, consumers will eventually ease into the $70 price tag, especially when most publishers inevitably raise prices.
Elsewhere, Ubisoft’s Chief Executive Officer Yves Guillemot said that the company’s model “is mostly based on internally-created, wholly-owned IP and assets, which is “a tried and tested model that has enabled us to build one of the broadest and most diversified portfolios of successful franchises.” “The benefits and opportunities offered by this strategy are growing in a context of strongly rising video game brands value and of AAA quality asset scarcity due to higher barriers to entry,” Guillemot concluded.
For more on Ubisoft’s third quarter results, check out our recent coverage.
[Source: VGC]
