Shuhei Yoshida, former head of PlayStation, has weighed in on the contentious issue of escalating video game prices, referring to the troubling “impossible equation” of rising inflation coupled with soaring development costs.
Nintendo has faced backlash from some fans over the price hike for titles on its upcoming Switch 2, with the new Mario Kart World debuting at £75/$80—a decision Nintendo marks as “variable pricing.” Meanwhile, Microsoft has revealed that select new first-party Xbox titles will also see a price increase to $80 later this year. Additionally, there are reports suggesting that the highly anticipated GTA 6 could hit as high as £80/$100.
In an interview with French outlet PlayStation Inside, Yoshida shared his thoughts on the current market dynamics.
“This was bound to happen eventually, not just with Nintendo, but in general,” Yoshida remarked. “We live in a time where inflation is stark and undeniable, yet consumers expect increasingly ambitious games to maintain their price points. It’s quite the conundrum.”
He emphasized that the core issue revolves around production expenses, noting that today’s games are “more demanding in terms of technology than ever before.”
Yoshida suggests that the current trend of remasters and remakes serves as a strategic way for the industry to diversify, referring to these projects as a somewhat “easy” avenue for generating profits that can subsequently fund original game development.
“I can’t say for sure whether Rockstar will price GTA 6 at €90 or above, but this is the reality we face,” he explained. “Meanwhile, subscription models and games-as-a-service are emerging revenue streams that significantly contribute to financing AAA titles down the line.”
He also highlighted the success of Clair Obscur: Expedition 33, developed by the French studio Sandfall Interactive, which sold a million copies within just three days and received commendations from none other than French President Macron.
“Ultimately, we need to strike a balance between production costs and what we charge for our games,” Yoshida stated. “GTA 6 will be a crucial case study, but take Clair Obscur: Expedition 33 as an example—its breathtaking visuals were crafted by a streamlined team of merely thirty people. This showcases that exceptional games can indeed be made with smaller teams and controlled budgets without sacrificing quality.”
On the topic of cost reduction, Yoshida discussed the potential of AI, which he believes could play a transformative role. He sees AI as a “creative tool” for enhancing games, while cautioning that “AI should augment our creative processes rather than become the focal point.”
“If developers harness the beneficial aspects of AI, it could prove invaluable,” he noted. “We’re already witnessing its application, and it’s vital to view it as an evolution of established practices within gaming, as AI has always been a part of video game history.”
“Designers and developers must become proficient with these new generative tools. It’s a matter of time, provided we keep human artistry at the forefront. Generative AI can expedite cumbersome processes that don’t detract from the artistic vision, particularly for smaller studios that are often short-staffed. This could lead to reduced production expenses, making the gaming industry more sustainable—assuming it doesn’t result in job losses, of course.”
As for the anticipated Switch 2, Yoshida expressed particular enthusiasm for Duskbloods, a project from FromSoftware. “I’m eager to see what unique technical achievements FromSoftware will showcase in this Switch exclusive, especially following the success of Elden Ring,” he shared.
Since leaving PlayStation last year, Yoshida has been vocal about his insights into the gaming landscape. He recently commented that Nintendo is at risk of losing its essence in light of the Switch 2 reveal, candidly shared his experience with Naughty Dog’s troubled The Last of Us Online, and praised NieR: Automata for revitalizing the Japanese gaming scene.
