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GTA publisher unveils complex entertainment per-hour pricing algorithm

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Strauss Zelnick, CEO of Take-Two Interactive, has spoken out on video game pricing, a divisive issue. The executive believes a simple algorithm can calculate this, but its efficacy is unclear.

In the company’s Q2 2024 earnings call (thanks, eXputer), Zelnick was asked about media industry subscription price increases. The executive replied that it has “nothing to do with our business” and explained how much value consumers get for their game purchases:

“The algorithm for pricing entertainment properties is the value of the expected entertainment usage, which is the per-hour value times the number of expected hours plus the terminal value that the customer perceives in ownership if the title is owned, not rented, or subscribed to. That applies to all entertainment vehicles. By that standard, our frontline prices are still very low due to our many engagement hours.”

This one required multiple readings, but Zelnick clarifies: “High engagement value. I think consumers have a great price-to-value opportunity in the industry. That doesn’t mean the industry wants pricing power. However, it offers great value.”

Zelnick seems to be saying that a customer’s perceived value of owning a game like Grand Theft Auto is proportional to how eagerly they anticipate it and how deeply they engage with it after release. That metric shows his point and some agreement. For instance, we’ve spent hundreds of hours on PS4’s 2019 Civilization VI, which can be replayed endlessly. If we knew that, paying more upfront wouldn’t seem so burdensome, but there’s a catch.

Zelnick concludes: “We aim to provide more value than we charge. Business price increases have been rare. After generations, certain frontline products’ $70 price increase was the first in years. I believe we offer great value to consumers.”

How do you view Zelnick’s entertainment pricing philosophy? Given Grand Theft Auto V’s entertainment value, would you pay more for the next GTA?

As Editor here at GeekReply, I'm a big fan of all things Geeky. Most of my contributions to the site are technology related, but I'm also a big fan of video games. My genres of choice include RPGs, MMOs, Grand Strategy, and Simulation. If I'm not chasing after the latest gear on my MMO of choice, I'm here at GeekReply reporting on the latest in Geek culture.

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The NFS Underground modes have been added to Need for Speed Unbound Drift & Drag today

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Need for Speed Unbound will be supported for a second year, which was confirmed when the game was added to PS Plus Extra earlier this year. The first free content drop based on a previous entry will be available today on PS5. “Drift & Drag” is the theme for Need for Speed Underground’s three new game modes: Drift, Drag, and League. You can get the content for free, and if you want extra body parts and decals, you can buy the Premium Speed Pass.

You’ll be able to use a new handling system made just for drift builds in the new drift mode. There will also be Drift playlists just for PvP and free roam. Up to four players can then test their manual gear shifts, strategic lane changes to avoid obstacles, and perfectly timed nitrous boosts in Drag. After that, League Mode is meant to improve the free-roaming experience for one player by letting you fight other racers head-to-head.

“This feature also introduces a community challenge, requiring collective effort to unlock the final boss and claim a new custom,” a release says. “With rivals showing up regularly and with new leagues on the way, this is where strategy, skill, and community converge, pushing players to earn their place among street racing legends.” It also adds two new cars, the Ford Mustang Dark Horse ’24 and the BMW M3 Competition Touring ’23.

After the Drift & Drag update, between August and October, the Cops vs. Racers content drop comes out. It was inspired by Need for Speed: Hot Pursuit. The creator says that a fourth volume will also come out at the end of 2024. You can still get the game on PS Plus Extra, so you can try out both the base game and any updates that come out after launch.

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Pre-orders for Assassin’s Creed Shadows are already showing great promise

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The recently announced Assassin’s Creed Shadows from Ubisoft has already garnered significant attention from the gaming community. Pre-orders for the game are showing great promise, even though it was only revealed to the public last week.

According to Tom Henderson of Insider Gaming, he recently shared some positive news on Twitter, based on information from undisclosed sources. The industry insider claims to not have exact figures at the moment but exudes confidence by asserting that those who are well-informed have not expressed any disappointment with them.

Taking place in feudal Japan, a time and location that fans have eagerly anticipated the series to explore since its inception, it’s a development that comes as no shock. The vast open world of Assassin’s Creed Origins certainly indicates that the series is undergoing some notable changes.

The game allows players to strategically locate and engage their designated adversaries in a flexible manner. The inclusion of vantage points in the game serves to assist players in surveying the environment for noteworthy locations, rather than inundating the map with an excessive number of objective markers. The use of light and darkness will have a crucial impact on the stealth mechanics, drawing inspiration from the tactics employed in Splinter Cell.

Have you already pre-ordered Assassin’s Creed: Shadows? Are you eagerly anticipating the series’ long-awaited voyage to Japan? Feel free to share your thoughts in the comments section below.

 

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Are you eagerly anticipating what Absurd Ventures has in store for us in the coming years

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Activision has recently announced the establishment of a new studio, Elsewhere Entertainment, located in Warsaw. The studio has been entrusted with the exciting challenge of creating a groundbreaking AAA franchise that will captivate players with its immersive storytelling and innovative gameplay. A significant number of employees were let go by the large corporation after the completion of Microsoft’s acquisition of Activision Blizzard King earlier this year.

According to IGN, Activision made the announcement in a blog post, sharing that the team will be based in Poland with additional resources in the US. The studio has assembled a team of highly skilled individuals who have worked on acclaimed titles such as The Last of Us, Uncharted, The Witcher, Destiny, Far Cry, and Tom Clancy’s The Division.

Activision’s response to IGN’s request for a studio logo or official artwork was rather unconventional. Instead of providing the requested materials, they sent over the Cambridge University dictionary definition of the word “elsewhere.”. However, with a discerning eye, one may catch a glimpse of something lurking in the background. The publication acknowledges that, whatever it may be, it has no connection to Call of Duty. Elsewhere Entertainment has been granted full access to Activision’s extensive resources and cutting-edge tools, enabling them to further enhance their production and development capabilities. We may have to wait a while before we find out what they have in store for us.

Curious about Activision’s latest venture, Elsewhere Entertainment? Opening a new studio after numerous layoffs—is it a tasteless move or simply another harsh reality of the video game industry? Feel free to share your thoughts in the comments section below.

 

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