Why are video games cheaper on different platforms?

Video games are one of the fastest-growing entertainment industries today. Modern video game production costs can equal or even exceed Hollywood movie budgets. As such, it’s not surprising that a new video game can cost around $70 or even more when picking a special edition. Naturally, the story is entirely different with small-scale indie games, which are sometimes created on shoestring budgets.

But that’s just one aspect of the video game industry. Have you ever wondered what other factors influence game prices? And why are games priced differently across various platforms? Well, that’s exactly what I’ll try to answer in this article.

Your geographical location affects game prices

It’s probably no surprise that video games are priced differently across regions worldwide. This is primarily because of basic economics. Now, I’m no economist, but I’ll try to break down the key reasons why game prices vary by region:

• Different purchasing power. People around the world have different incomes and may not earn enough to afford games priced at $60 or more. As a result, publishers adjust their prices to accommodate different purchasing powers across various countries. That’s why games are usually more affordable in developing countries like Brazil or Vietnam.
• Currency differences. Games are usually sold in local currencies, and because exchange rates fluctuate, it might seem like some countries get cheaper prices. However, this is relative – buyers with weaker currencies may actually feel that games are more expensive.
• Trade deals. Some countries offer tax breaks or legal incentives that can reduce video game prices. On the flip side, tariffs and trade restrictions can raise costs. These factors tend to affect physical goods more, such as game consoles and PC components.
• Stock shortages. A limited supply of physical game copies in certain regions can cause price hikes in retail stores. On the other hand, surplus inventory might lead to unexpected discounts. These situations often stem from supply chain disruptions that delay shipments.

These are some of the most basic factors that may affect game prices in your area. However, it gets even trickier once we dive into the differences between PC and console games.

Differences between PC and console lead to different pricing strategies

Things get even more complicated when we dive into the specifics of the actual game distribution platforms. More factors come into play here, as multiple options compete with one another – each using different strategies to attract gamers to their ecosystems. As such, they employ different strategies to attract gamers to their ecosystems.

On PC, you have Steam, the Epic Games Store, GOG, and publisher-specific platforms like the EA App and Ubisoft Connect. Meanwhile, each gaming console (PlayStation, Xbox, Nintendo Switch) has its specific platform. So, let’s briefly explore PC and console factors separately to figure out what affects game prices on each platform.

PC gamers have more options overall, leading to lower prices everywhere

I’m a PC gamer because this gaming platform grants me immense freedom and flexibility. I’m sure many other PC enthusiasts share this sentiment. Crucially, this benefit leads to lower game prices due to increased competition. After all, PC gamers can easily switch from one distribution platform to another, meaning publishers must offer exceptional benefits to retain customers.

So, let’s quickly look at the factors affecting game prices on PC:

• Competition between platforms. PC gamers can choose from a variety of platforms, which means they tend to have higher expectations for service quality. As such, platforms must significantly improve their services to attract and retain users. This covers various improvements in the overall user experience, and includes promotions and discounts that reduce game prices.
• Competition with piracy. Gabe Newell famously said, "Piracy is almost always a service problem and not a pricing problem.” In essence, he suggests that PC gamers often turn to piracy because legitimate purchasing options are inconvenient. That means game publishers have to offer something more appealing than getting games for free through piracy, which is definitely a tall order.
• Less emphasis on physical distribution. PC game distribution continues to shift away from physical copies toward digital-only sales. This leads to lower prices since there’s no need to spend money on manufacturing physical copies.
• No licensing fees. Games released on PC platforms like Steam, Epic Games Store, and GOG don’t require licensing fees to be listed. There are revenue-sharing fees, which aren’t as impactful as upfront licensing fees. Additionally, the QA process on PC platforms isn’t as rigorous and costly like on consoles.

Console gamers have fewer alternatives and have other unique factors to contend with

I’m not really a console gamer, so take my statements with a grain of salt. That said, from what I understand, playing games on consoles is radically different from the Wild West of PC gaming. Once you pick a console, you’re basically stuck in that ecosystem without other alternatives. Therefore, it’s much more difficult to get cheaper prices there. There are also a few other aspects unique to consoles that influence pricing. Below is an overview of the main factors influencing game prices on gaming consoles:

• Fewer platforms. Each game console has its own platform, leading to fewer options for gamers and lower competition between publishers. Thus, game prices remain stagnant.
• Physical game distribution. Physical game copies remain a core aspect of console gaming, leading to overall price increases. After all, manufacturing physical copies and distributing them to retail stores is a significant expense that needs to be recouped through sales. Plus, if physical copies are made abroad, tariffs can push prices even higher.
• Licensing and certification costs. Releasing a video game on consoles is a more complex and expensive process than on PC. First, developers must ensure that their games run without issues on those consoles. This involves going through a certification process that guarantees a game meets platform-specific requirements regarding overall quality. Additionally, game publishers have to pay the platform holder (Microsoft, Sony, Nintendo) a royalty for each sold game, which further escalates the price. These additional costs aren’t an issue when releasing a game on PC.

You can take additional steps to buy games at a lower price

The previous discussions might lead you to believe that game price fluctuations are beyond your control. Thankfully, that’s not the case, and you have a few options to get some video games at cheaper prices. Here’s a list of suggestions if you want cheaper games.

• Change location with a VPN. You can use a VPN to change your virtual location and take advantage of regional price differences on various platforms. We even have a guide specifically for changing your region on Steam. The process is likely similar on other platforms. However, I suggest being cautious with this approach since changing your location to get cheaper prices can be considered a breach of the terms of service, which could result in severe penalties.
• Buy from key resellers. You can buy game keys from third-party resellers at cheaper prices. They have plenty of options for PC and console gamers, although key availability can vary by game. However, be sure to choose a reputable reseller because some might be selling game keys that were bought using stolen credit cards.
• Wait for discounts. Most games eventually go on sale during holidays or promotional events. So, rather than giving in to the initial hype, it’s often worth waiting for the price to drop.
• Use game subscription services. There are ways to play games without buying them outright. For example, Xbox Game Pass allows you to play a wide variety of games for a reasonable monthly fee. Meanwhile, game streaming services like Nvidia GeForce NOW enable high-fidelity gaming even if you don’t have a powerful gaming rig. Such services grant exceptional value for money, although a notable downside is that you don’t actually own any of these games.

My thoughts on the future of game prices

Many factors influence video game prices, making it difficult to predict what will happen in the future. Supposedly, game prices will rise naturally due to inflation. And it seems that only recently have the prices for new AAA titles like DOOM: The Dark Ages and Monster Hunter: Wilds risen to $70. Note that these examples are from already established franchises, meaning some user excitement is already there.

However, Microsoft is raising the price of Xbox consoles by $80-$100 and even plans to raise the price of some games to $80. This is quite unprecedented and will definitely push the limits of what gamers will tolerate. On the other hand, Jason Schreier from Bloomberg claims that players have too many options to spend $80 on a video game, and I definitely agree with that statement. I mean, you can always buy a cheaper game or wait for the inevitable discount down the line.

Some speculate that GTA 6 will cost $80 or even $100 upon launch, which could set a scary precedent for the future if the game becomes commercially successful. This scenario is very likely simply because of its name and overall hype. However, I doubt anyone would be willing to pay more than $70 for a game from an entirely new franchise. I hope GTA 6 does the unthinkable and prices the game at $60 to set the new industry standard back. This would definitely be a move that favors the players over corporate shareholders.

Additionally, I think the market is oversaturated with games that have massive production budgets and steep price tags yet garner little interest from gamers. Concord is an excellent example of an overproduced game that failed to capture gamers' interest. It offered nothing new to get excited about, so it got canned just a few days after release. Hopefully, this will convince publishers that gamers want something fresh and innovative, such as Baldur’s Gate 3, which was massively successful despite its $60 cost.

With indie titles, it's entirely different. These games come in various price ranges, anywhere between $10 and $40, meaning anyone can find a great title that suits their budget. They’re also usually more innovative than AAA titles, making them more appealing if you want something revolutionary.

Ultimately, you can affect game prices by voting with your wallet

Popular AAA titles are expanding in scale, which leads to increased game prices from companies wanting to turn a profit. Games from well-known franchises are already launching at $70, yet Microsoft wants to push that cost even further to $80, which could affect the entire video game industry. Whether gamers are willing to pay such a price is an entirely different matter.

That said, I doubt that publishers will put such hefty price tags on lesser-known games. Just look at Concord – it showed that gamers are more than willing to skip big-budget, unknown titles that fail to innovate on proven formulas. And with so many alternatives available, it’s often smarter to wait for prices to drop or explore other ways to buy games more affordably.