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Activision defends Modern Warfare 2 price hike photo

Modern Warfare 2 was always going to sell like crazy in the UK, especially given the ridiculous success of World at War, but Activision decided to bump the price up to fifty-five quid anyway. Activision UK managing director Andrew Brown feels his company is justified in doing this, saying it's okay to charge fifty quid if you believe people are willing to spend it.

"At the end of the day, there is a spectrum of what people can afford and what people are prepared to spend. These things are key," claims Brown. "This is an industry where things cost a lot to develop and it’s a risky business. We talk about building franchises; it is very expensive to do this from every respect. What we are finding is that for the right products, if you look at the time someone will spend playing something and compare it to something else, people are saying it's worth it"

Did Brown really try and make us believe that Modern Warfare 2 is an expensive and risky move? An FPS based on an engine that's already developed and guaranteed to sell millions upon million of copies is an expensive risk? Wow, that's utter horsesh*t right there. 

Activision, I would respect you a lot more if you just straight-up admitted the real reason for the price hike: You're greedy and you think you can get away with.








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64 comments | showing # 1 to 50
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DarkMagic56's Avatar - Comment posted on 10/05/2009 08:09
DarkMagic56
Its obvious they rose the price cause its true that it'll sell millions.
Money Whores, all ActiBliz cares about is money these days.
Black Nexus's Avatar - Comment posted on 10/05/2009 08:23
Black Nexus
Damn I thought it was just kotick, but apparently the entire company is filled with boneheads like him (I pray that this guys boss put him up to this, I'd hate to think there's more than 1 kotick in the world).


You bastards got greedy, MW is one of the best selling games this gen, its name alone prints money, there is no excuse for what you guys did.
DaedHead8's Avatar - Comment posted on 10/05/2009 08:28
DaedHead8
I can't fault Activision for running a business. They know people will pay it so that's what they charge. It's sad but true.
Everyday Legend's Avatar - Comment posted on 10/05/2009 08:28
Everyday Legend
Duh. Activision is the goddamn devil, don't you know that?

With that said, I hope the game fails miserably. I know that it won't, but it's still fun to dream.
Doos's Avatar - Comment posted on 10/05/2009 08:29
Doos
IW needs to find a new publisher.
Nogarda's Avatar - Comment posted on 10/05/2009 08:31
Nogarda
In fairness supermarkets have smashed the 54.99 mark down to pre-order prices of 42.99 sure its still priced over the 39.99 standard but Activision were dumb hiking up the price so much, to the point it caused instant outrage. they should have enforced 44.99 price tags and charged what they are for thier hardened and prestige editions. and no one would have moaned just a murmur of greedy sods for enforcing the pricepoint but they didnt they just got greedy and now you can get it for almost base retail price.

The sad truth is no one besides psychopaths are gonna be regularly using the nvg's, people will take one maybe two looks at the artbook but it will soon head the same way the Legendary edition of Halo 3 did, ...on a shelf in the corner collecting dust.

Also because HMV got the prestige exclusive deal has anyone noticed the deal GAME.co.uk has going on. now THIS is greed! thats a £30 mark up for something that must cost £10 tops on top of the hardened edition.
Nerdy Suit's Avatar - Comment posted on 10/05/2009 08:32
Nerdy Suit
On one hand, Activision isn't the first company in history to do this...companies, like Apple with its iPhone and iPod, do this all of the time.

With that said, this practice is not typical for the video game industry, and I believe that any company that attempts this will be surprised by the negative reaction towards their product.

So here's to hoping that all of those cute little Englishmen screw Activision over.
Shoop's Avatar - Comment posted on 10/05/2009 08:38
Shoop
I thought the whole point of having an established franchise from a business point of view is that it's a relatively safe investment.
TKurata's Avatar - Comment posted on 10/05/2009 08:40
TKurata
It's Capitalism, folks. It boggles my mind how people get so personally offended over the pricing of video game items...it's rather childish.
killboy's Avatar - Comment posted on 10/05/2009 08:42
killboy
yeah! I mean they spend 2 years making what is no doubt gonna be game of the year and then have the nerve to charge 5 measely extra punds! I for one am boycotting activision until they give me my god given right to pay whatever i feel like for the products that people more talented than me have worked hard to make.
yggogre's Avatar - Comment posted on 10/05/2009 08:44
yggogre
My local HMV had Mercenaries 2 for £69.99 - thats over 100 USD. Europe always has slightly more expensive games anyway.
Fozzo's Avatar - Comment posted on 10/05/2009 08:45
Fozzo
@killboy it's actually £15 over what the norm is. it equates to about $80-90. it's nothing but greed
Tha_Meat's Avatar - Comment posted on 10/05/2009 08:50
Tha_Meat
If I was into pirating games this is one that I wouldn't think twice about ripping off.
Holiday's Avatar - Comment posted on 10/05/2009 08:50
Holiday
Yep, get them hooked on your product and then raise the price.
Django Reinhardt's Avatar - Comment posted on 10/05/2009 08:50
Django Reinhardt
I think they're justified. Markets fluctuate and change all the time; you can't expect videogames to be immune to economic decisions, especially now that it's slipping into corporate ownership. They're saying this: why should a game that costs millions of dollars to produce cost the consumer the same price as a game that costs only thousands of dollars to produce. It makes complete sense from a business standpoint. This isn't morally wrong or right: it's just an indication that the art of gaming is changing significantly.

Expect this to happen a lot after the success of Modern Warfare 2.
killboy's Avatar - Comment posted on 10/05/2009 08:50
killboy
actually the RRP of games here is £50 or there abouts. Most places only charge £40 so most people don't realise. Where i work this game is gonna be £42.99 which doesn't bother me cos i know i'm buying quailty.

Seriously, alot of people on here are acting like activision have just raped their mum when in actual fact it just means you won't be able to afford a box of pop tarts while you enjoy your game
attacanteblue's Avatar - Comment posted on 10/05/2009 08:51
attacanteblue
No, it's £5 over the norm. Virtually all games are RRP'd at 49.99, but no-one pays the RRP, as everyone knows.

But hey, don't let that get in the way of all the Activision hatin', eh?
BattyAdroit's Avatar - Comment posted on 10/05/2009 08:58
BattyAdroit
Seeing Venger makes me happy.
Jon B's Avatar - Comment posted on 10/05/2009 08:59
Jon B
As long as I can pick up the PC version for £30, I don't mind.
L4D2 and Borderlands' 10% off offers have spoiled me enough.

Although, thinking about it, that's practically 2 games for the same price as MW2 on consoles. Eep.
ChainThrow's Avatar - Comment posted on 10/05/2009 09:05
ChainThrow
The thing about the RRP is that pretty much none of the smarter retailers in the UK have ever stuck to it. I mean, it's supposed to be £50 right now, but I don't remember the last time I saw GAME or Amazon list a game that wasn't a special edition for more than £40. The supermarkets are quite happy to sell major releases at £30 on day 1 from time to time. And we have really fast price collapses, too - nothing retains value past a month.

Sure, Activision are being excessively and shamelessly greedy, but they're not likely to actually get their way and all they've really done is increased the number of people buying their game used or renting it.
Frohike's Avatar - Comment posted on 10/05/2009 09:14
Frohike
Carl Sagan, you assume that studios will price according to production cost. From what I've seen they'd more likely price according to what people are willing to pay. Even if Modern Warfare had somehow cost less to produce, I still believe we'd be seeing this price hike due to the demand and perceived value on the part of the consumer. They're simply charging what they can... because they can and because we are willing.
Infinite Combo's Avatar - Comment posted on 10/05/2009 09:15
Infinite Combo
MW2 is a game I wouldn't mind paying extra for. It's a game I will be playing for the next 2 years anyway. Yes, it sucks that publishers may continue to rise the prices on successful games, but MW2 is worth the extra money.
Everyday Legend's Avatar - Comment posted on 10/05/2009 09:16
Everyday Legend
@ Carl Sagan
Are you flying high in the spaceship of the mind again? You are aware that while development costs are rising, raising the price of games incrementally is only going to further exclude more and more people from the overall player pool? Sure, it ain't that much of a difference now, but this could be the harbinger of a bad idea. Hopefully this doesn't become the norm, because the $40-$60 price point has been observed as a standard for almost 20 years now.
FatherChesz's Avatar - Comment posted on 10/05/2009 09:27
FatherChesz
The PC version here in the States has been hiked to $60 USD too. I'm sure it's for the same reason. I will most assuredly be not buying this game new. I'll get it as a video card pack-in or some used means, which certainly is not easy for a PC title.
Rosseh's Avatar - Comment posted on 10/05/2009 09:31
Rosseh
If the PC version isnt approximately £35, I'm not buying it.
Django Reinhardt's Avatar - Comment posted on 10/05/2009 09:32
Django Reinhardt
Oh, sorry for that double post.

Anyway, I don't think twenty years is nearly enough time to establish any constants or standards. The industry has changed considerably in twenty years and it could always be completely different in a decade. So let's not assume anything.

Frohike, I'm not assuming that studios will adopt that sort of pricing scheme, I'm just observing that people will likely be willing to spend more for a game with higher production values. Modern Warfare 2 only stands to evidence that. So do 3D movies.
Django Reinhardt's Avatar - Comment posted on 10/05/2009 09:32
Django Reinhardt
Oh, sorry for that double post.

Anyway, I don't think twenty years is nearly enough time to establish any constants or standards. The industry has changed considerably in twenty years and it could always be completely different in a decade. So let's not assume anything.

Frohike, I'm not assuming that studios will adopt that sort of pricing scheme, I'm just observing that people will likely be willing to spend more for a game with higher production values. Modern Warfare 2 only stands to evidence that. So do 3D movies.
Steel Brotha's Avatar - Comment posted on 10/05/2009 09:34
Steel Brotha
@ Carl Sagan
"They're saying this: why should a game that costs millions of dollars to produce cost the consumer the same price as a game that costs only thousands of dollars to produce."

Really? Then how come they're only doing this in the U.K. Seriously you can't justify charging one country more than everyone else. They're charging the U.K. the equivalent of $100 US for a game.($210 US fro the Prestige Edition) And do you really think this game cost millions to make? Most of that production costs probably goes to voice actors and they're musical score as well as advertising. This is really just a graphical upgrading with more features. It's all about demand Sagan. They know people want it so they were greedy and hiked the prices.
matrixdude171's Avatar - Comment posted on 10/05/2009 09:37
matrixdude171
...... 60$ for the pc version? seriously? we don't even get guaranteed good graphics and they raise the prices? Forget you MW2, you can wait till you're in the cheapy bin.
Django Reinhardt's Avatar - Comment posted on 10/05/2009 09:39
Django Reinhardt
All good points, Steel Brotha.

I didn't consider the difference between the markets. Yeah, I'm starting to be kind of amazed that they would pull this stunt.
Zaradan's Avatar - Comment posted on 10/05/2009 09:40
Zaradan
I wonder if they'll have the audacity to moan about piracy after this piss take as well? To expect Joe public to swallow that nugget of complete and utter horse shit about risk and development cost show's little more than naked contempt.

The fat cats of Activision are bound to make millions out of this even at a more consumer friendly price point. It's not the money making that irks me, more the patronising gob-arse that goes with it.
Your Moms Hot Lover's Avatar - Comment posted on 10/05/2009 09:44
Your Moms Hot Lover
yeah the price hike sucks, but bottom line is I and most people who play COD, get twice as much playtime in Call Of Duty as opposed to most releases. In fact, this last year I would guess I have played W@W for as much time as my other 10+ new games combined.

So yeah I'd grumble about the price and then pay it anyway, because it is worth it to me. In fact, it's one of the only games that I simply can't wait a few months to get second hand.

Other new games might try price hikes and get burned but I think COD is going to get away with it.
Steel Brotha's Avatar - Comment posted on 10/05/2009 09:45
Steel Brotha
@ Carl Sagan
"I'm just observing that people will likely be willing to spend more for a game with higher production values. Modern Warfare 2 only stands to evidence that. So do 3D movies."

How can MW2 stand as evidence to people willing to pay more when it's not out for another month? 3D movies aren't more because of higher production values. They're higher because you gotta provide the glasses and create the optical illusion on the film itself. And 3-D movies cost $2 extra not 15 Quid more. If the movie business charged more for production value the The Dark Knight would've been the most expensive movie to watch last year. But it wasn't. It was the same price for a Dark Knight Ticket as it was for a District 9 Ticket. The Dark Knight cost $185 million while District 9 cost $30 million. I'd really like to see Activision try this crap here in North America. If people didn't buy PS3s because of price then they wouldn't pay $100 for video games either.
Zaradan's Avatar - Comment posted on 10/05/2009 09:55
Zaradan
I wouldn't be at all surprised if the big Supermarkets in GB at least have a release day special offer rather like they did with the 50% off Fifa 10 deal. My advice would be to hold off the online pre-orders and have a rummage around Tesco, Asda etc come release day.

I'd be amazed if every retailer stuck to that price point. Expect Gamestation, Game, and HMV to do so however, as they never do anyone any favours on new releases.
Volomon's Avatar - Comment posted on 10/05/2009 10:15
Volomon
Out of curiosity what prevents the UK (PS3) from importing the game from the US?
Everyday Legend's Avatar - Comment posted on 10/05/2009 10:20
Everyday Legend
It'll be interesting to see whether or not the UK sales numbers will drop from the price hike. God, I hope it does.
Zaradan's Avatar - Comment posted on 10/05/2009 10:31
Zaradan
Trust me, high street retailers are going to be falling over themselves to capitalise on first week sales on this one. A nice, healthy price war will ensue. Just you wait and see :P
Jack Kelly's Avatar - Comment posted on 10/05/2009 10:49
Jack Kelly
tTo my understanding publishers dont make the rrp, they make a fraction of that (around 3-4 £ from what friends in the industry have told me), they just recommend the rrp to the retailer. Now it could be that acti-bliz are refusing to sell below a certain point which is well above the industry standard to the wholesalers/retailers and justifying the cost by encouraging the retailer to seel at a higher rrp but people need to be clear they themselvesa are making no where near £55 per unit. That said before anyone gets me wrong yes it is scandalous that acti-blizz are encouraging such a high rrp and i for onr wont purchase unless i can find it for under 40 notes.
Sean Daisy's Avatar - Comment posted on 10/05/2009 10:52
Sean Daisy
@Volomon
Better still, if I wait 6 months I'll be able to get a copy for around £30. That's brand new, before I even consider going down the avenue of preowned or eBay, where I expect I could get it for £10-20. All without breaking a single law or losing out on the experience of playing it.
Jack Kelly's Avatar - Comment posted on 10/05/2009 10:54
Jack Kelly
@Volomon Sony laying the leagl smack down on anyone prepaired to export to the uk, think lik sang
Rasgueado's Avatar - Comment posted on 10/05/2009 11:09
Rasgueado
This is the important bit of the quote, "At the end of the day, there is a spectrum of what people can afford and what people are prepared to spend." So they've just decided to push the price up the line on the left side of the graph. They know they won't sell as many copies at this price, but they know enough people will still pay at the inflated price to more than cover the shortfall in per unit sales. That shortfall is then additionally covered by a well publicized price drop either right before, or immediately after Christmas.

Two other comments I love he made, "... and compare it to something else, people are saying it's worth it." YES! Thank you Fox news! "Some people say" it's worth it! Like... Ferrari's right? You don't hear filthy rich people saying that spending hundreds of thousands of dollars on a car they barely drive isn't worth it right?

Also his comment that the business is a "risky business." Activision makes between 3-4 BILLION dollars in profit (after expenses). It ain't *that* risky. (It's not like they're artic fisherman or something where they could actually die. Now *THAT* is a risky business.)
ShuperShawn's Avatar - Comment posted on 10/05/2009 11:30
ShuperShawn
Fuck em! Raising up the price why? Cause they can. That's just bullshit!
aaronf's Avatar - Comment posted on 10/05/2009 11:33
aaronf
In other news, the UK citizens who are complaining about the price hike will *still* buy the game, letting Activision know that they don't mind paying the hiked price.
TheStripe's Avatar - Comment posted on 10/05/2009 12:02
TheStripe
Doos: IW needs to find a new publisher.

Can't. They're owned by Activision.

And to whomever said that apple did this with the iPod isn't paying attention. The iPod has either gained features or gotten cheaper every singe iteraton.
Holyetheline's Avatar - Comment posted on 10/05/2009 12:20
Holyetheline
That is one of the most ridiculous lies I've ever listened to. A real risk would be releasing the game at $5 fewer than the standard price...
Timmeh's Avatar - Comment posted on 10/05/2009 12:25
Timmeh
Except they dumped all those risky IPs a while back for ones that could be better exploited.
Los255's Avatar - Comment posted on 10/05/2009 13:09
Los255
EVIL I tell you. Fucking EVIL.
fetusmilk's Avatar - Comment posted on 10/05/2009 13:10
fetusmilk
ah ok venger. i knew that guy looked familiar. just could recall it. D&D cartoon.
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