A gaming industry analyst penned a lengthy 200+ slide presentation about the state of the US video gaming industry for 2025.
Epyllion CEO Matthew Ball pointed out how the gaming industry has tumbled into a slump, pressuring developers and publishers, but new "hopes" center around Rockstar Games' guaranteed mega-hit Grand Theft Auto 6 release this fall that "could re-establish packed video game prices after decades of deflation despite rampant cost growth."
GTA 6, the long-awaited follow-up to 2013's GTA 5, will hit store shelves for Xbox and PlayStation this fall. We should note GTA 6 has been previously delayed...
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Ahead of GTA 5's release, Goldman analysts reiterated in November a "Buy" rating on Take-Two, the owner of Rockstar Games, with a 12-month price target that was shifted up from $186 to $205.
DFC Intelligence, the oldest market analyst firm covering the video games industry, forecasted that GTA 6 could generate over $3 billion in its first year of sales, including $1 billion from just pre-orders. This positions GTA 6 to potentially become the largest-ever entertainment release in history.
Epyllion's Ball predicts that GTA 6 could help reverse the deflationary downturn in the video game industry, stating: "Some game makers hope GTA 6 will be priced at $80-100, breaking the $70 barrier and helping $50 titles move up to $60, $60 to $70, $70 to $80."
He also noted that at $70, GTA 6 would be the "cheapest" entry in the series in relative terms. This suggests a $10-$30 price increase is ahead for the release this fall, which could benefit the video game industry as a whole.
In the early 2000s, video games were priced around $50. By the mid-2000s, this increased to $60, and in 2020, the industry raised the price of AAA-rated games to $70.
"Packaged game prices have never been lower in real terms than they are today — even though budgets are at all-time highs and player growth is stalled," Ball continued, adding, "GTA 6 could re-establish packed video game prices after decades of deflation despite rampant cost growth."
Reacting to Ball's lengthy note, Michael Douse, publishing director at Baldur's Gate 3 developer Larian, wrote on X, "You're not supposed to say this out loud!"
Douse continued, "A good company raises salaries in line with inflation so that their staff don't die or something, but games prices haven't risen with inflation. This isn't the reason the industry is in the shit for now, but it is an uncomfortable truth. On the other hand, the responsibility for a game developer is to make sure that the game they show lives up to that promise, and that investment from the player."
A good company raises salaries in line with inflation so that their staff don’t die or something, but games prices haven’t risen with inflation. This isn’t the reason the industry is in the shit for now, but it is an uncomfortable truth. On the other hand, the responsibility for…
— Very AFK (@Cromwelp) January 19, 2025
$70, $80, even $100—price increases are unlikely to deter hardcore gamers who have waited over a decade for GTA 6.
The question remains whether GTA 6 can single-handedly save the video game industry from a deflationary death spiral.