EB Games Canada is Quietly Raising Prices

eb-games-canada-logoThe Canadian currency market is probably not something most gamers pay attention to but it might be something that will concern Canadian gamers if what EB Games is doing becomes an industry-wide trend.

The Canadian arm of GameStop has very quietly raised the prices of some much-anticipated upcoming games. Rather than being $60 as it was for new games in previous years, EB Games is charging up to $70 for new games that are available for pre-order.

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The Economics of Video Game Development

call-of-duty-black-ops-2-wallpaperA few weeks back, one of the hot stories in the video game world was that Call of Duty: Black Ops 2 reached gross sales of $1 billion in only 15 days. What sounded like good news for publisher Activision was quickly reigned in by writers pointing out that CoD: Blops 2 sold fewer copies to reach $1 billion of gross sales than 2011’s CoD: Modern Warfare 3.

This raised an interesting question in my mind: How profitable are video games to make? Even if Blops2 sold fewer copies, shouldn’t Activision still have covered the sunk costs of development and marketing after paying for the variable costs of each unit sold? Continue reading