
Later this year, most likely in November, arguably the most eagerly-awaited video game of all time will be released. Grand Theft Auto VI has been in development for years and has been delayed several times, which has whetted the appetite even more. However, rumors abound that GTA VI might cost in excess of $99 USD ($135 CAD). Most players will probably shrug at the expensive price tag, though industry observers will be keenly watching the reaction of the market.
The price point of GTA VI is more than just a one-off cash grab by a developer, however. Gamers have been experiencing severe inflation for several years now due a special set of circumstances. For example, the cost of gaming has risen in line with general inflation across the 2020s, but there is also the additional pressure due to the demand for chips from AI data centers. Rising RAM costs have fed into the wider inflationary pressures on gaming.
Entire ecosystem has been impacted by inflation
One of the issues is that there is so much that goes into the ecosystem of a gamer. We mentioned the cost of AAA games like GTA VI above, but in the last year, there have been rises in the cost of hardware, both Xbox and PlayStation consoles have risen by approximately 10% and 20% respectively, and the cost of subscription services has rocketed, which has caused significant backlash. Graphics cards have also risen in price, and gaming accessories, too.
There is growing evidence that some gamers are cutting back. Gen-Z, in particular, seems to be spending less on top-tier games and services. Of course, there are numerous cheap and free options online, ranging from retro gaming emulators to freemium online games to online social casino platforms like Pulsz, but the top line is hurting gamers in Canada and beyond.
Global conflict could drive prices up further
The question, though, is what happens next? The current conflict in the Middle East is expected to have a knock-on effect on general global inflation. Oil and gas prices have already risen, and supply chains could be impacted if there is spillover into the wider region. None of this is unique to gaming, of course, but there is also that increasing demand for chips to power AI services.
Ironically, perhaps, the solution could also lie with AI. The technology is being used by many game developers to cut costs, either by replacing human employees or making developers more productive. Vibe coding – using AI to automate code – has its drawbacks, but it can be eminently useful for the kind of repetitive and laborious design tasks required to build out gaming worlds.
There is also some hope that AI may be used one day to allow anyone to build games through prompts, without the need for coding experience. Right now, those games are quite simplistic, but the theory is fairly sound.
However, this utopian future of ultra-cheap games built by AI or games that we build ourselves is not yet here, nor is it guaranteed to ever arrive. For now, gamers must face a specific set of circumstances, a perfect storm of sorts, that has seen the cost of their favorite pastime rise by significantly more than any other area of entertainment.
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