Filling Games with Microtransactions and DLC is the Alternative to Not Raising Game Prices
Bruno Pferd 
Key Takeaways
Created with AI - we're still experimenting, so apologies if it misses the mark
- Game prices may increase in new console generations due to rising development costs and inflation, but companies are hesitant to do so due to potential customer backlash and loss of market share.
- The game industrys focus on growth has led to high game development costs, often exceeding $200 million per title, which requires games to sell millions of copies just to cover expenses.
- To compensate for limited returns from initial game sales, companies are embracing additional revenue streams such as DLC, microtransactions, battle passes, and seasonal content.
- These additional content offerings, like DLC and microtransactions, are becoming increasingly common in the gaming industry to help cover the high costs of game development and maintain current game prices.
Rising Game Prices Avoided through Microtransactions and DLC in New Console Generations
Shawn Layden, former head of PlayStation USA, has frequently asserted that video game prices should increase with each new console generation. He argues that profits are shrinking, as prices have remained stagnant for the past two decades despite inflation and escalating game development costs. Layden believes prices should have risen with every new console; however, no company wants to be the first to implement such increases, fearing customer backlash and a loss of market share. As a result, companies are earning less per unit sold.
Game Development Costs Force Embrace of DLC, Microtransactions, and Seasonal Content for Profitability
Speaking to GamesIndustry.biz, Layden explained that the industry has long operated with a mindset prioritizing growth, even at the expense of profitability. He emphasized that the industry has now reached a critical juncture where companies must sell millions of units merely to cover development expenses. Layden highlighted the prohibitive cost of game development, noting that budgets can exceed $200 million for a single title. Such high costs leave little room for profit unless a game sells upwards of 25 million copies—a sales milestone typically only achieved by major publishers like Rockstar. Alternatively, Layden suggested that maintaining current game prices while increasing revenue through additional content, such as DLC, microtransactions, battle passes, and seasonal content, could compensate for the limited returns from initial game sales alone.
In Case You Missed It
As we continue to navigate the evolving landscape of the video game industry, it’s crucial to stay informed about how economic shifts are reshaping consumer behavior and market dynamics. Jonathan Dubinski’s latest piece, “Shawn Layden Warns: Xbox Game Pass Turns Creators into ‘Salary Slaves'” (published on August 13, 2025), delves deep into these changes and raises important questions about the sustainability of subscription models for game developers. With insights from Shawn Layden himself, this blog post highlights the challenges creators face in an increasingly competitive market. If you’re interested in understanding how economic downturns and shifting consumer preferences are impacting the industry, make sure to check out Shawn Layden Warns: Xbox Game Pass Turns Creators into ‘Salary Slaves’. In a touching tribute to a long-standing figure in the gaming world, Jonathan Dubinski also reflects on the retirement of Shuhei Yoshida from Sony Interactive Entertainment (SIE) after an impressive 31-year tenure. Published on November 27, 2024, this heartfelt piece delves into Yoshida’s significant impact on PlayStation, from fostering developer relationships to his pivotal role in expanding the brand’s reach globally. As he steps down officially on January 15, 2025, but remains committed to supporting independent game development and attending major industry events, it’s clear that Shuhei Yoshida leaves behind a legacy that will be deeply missed. For more insights into this bittersweet chapter in gaming history, Shuhei Yoshida, a Pillar Star of PlayStation Departs, Will Be Missed by the Industry.
About the Author
Jonathan Dubinski 
Sophie Laurent 
Marcus Thompson 
Carlos Mendoza 
