Why is Modern Warfare 2 so Expensive?
At $70 for all platforms, the recently launched Call of Duty: Modern Warfare 2 comes with a steep price tag that has raised eyebrows across the gaming community. As a passionate CoD fan myself, I‘ve done a deep dive to understand exactly why Activision is charging a premium for MW2 compared to past franchise releases. After crunching the numbers and industry trends, the price hike becomes more clear.
AAA Game Prices Are Going Up
It‘s true the $70 pricing is now standard for AAA games on PS5 and Xbox Series X|S. Sony, Microsoft, and major publishers set this new norm back in 2020 when they began transitioning to the "next generation" of consoles. However, the shift to $70 is more complex than just keeping up with new hardware costs.
Industry analyst firm IDG projects the average PS5/Xbox Series X development budget is around 10-20% higher than late-stage PS4/Xbox One titles. That aligns with more advanced graphics, physics, AI, etc. But it doesn‘t fully explain the 17% price jump from $60 to $70.
In reality, major publishers are taking advantage of the next-gen console transition to raise prices universally. Price sensitivity and demand elasticity for AAA games is low – fans will pay more for top franchises.
So Activision and others can get away with across-the-board $70 pricing on both new and old consoles despite only modest increases in actual development costs. Next-gen has provided cover for raising prices more than necessary.
Call of Duty Will Sell No Matter What
As the best selling AAA franchise of the last decade plus, Call of Duty sits in an enviable position. The series has cultivated an incredibly loyal fanbase of millions who reliably purchase each new release, almost regardless of price.
Activision knows the CoD community will turn out in force for Modern Warfare 2. So they can maximize revenue by extracting the highest price the market will bear. Even at $70, I project MW2 will easily top 15 million units sold in its first quarter.
To put that into perspective, the last Modern Warfare game in 2019 sold around 30 million copies across its entire lifecycle. MW2 could do over half that amount in just its first few months, despite the premium pricing!
Current-Gen Users Can‘t Avoid the Price Hike
Past Call of Duty games gave players a $60 current-gen option. But MW2 bundles the cross-gen version for $70, forcing current-gen owners to accept the next-gen tax. This strategy means millions of PS4 and Xbox One users who want MW2 must pony up the extra $10.
Based on sales figures for CoD:Vanguard, current-gen consoles still represent over 35% of the player base. That‘s millions of players Activision is bilking for extra revenue.
It‘s a brilliant if shameless strategy – prevent budget conscious gamers from purchasing your game at the normal $60 price point if they want to stay on current-gen. Maximum profits.
Visuals Alone Don‘t Explain the Costs
There‘s no doubt the graphical fidelity of MW2 is a step above previous CoD titles. The new engine optimized for current-gen allows richer details and more immersive environments. But how much does visual quality actually impact the budget?
Data from other AAA studios indicates switching from current to next-gen increases art asset costs by around 8% on average. MW2 definitely looks great. But most of its technical graphics capabilities come from efficient utilization of power in new consoles, not astronomically more expensive assets.
In raw terms, I estimate the art budget increased from around $50 million for 2019‘s Modern Warfare to $55 million for this sequel. Not insignificant growth, but nowhere near justifying a blanket $10 price hike.
Call of Duty: Modern Warfare 2 offers an incredible multiplayer experience and visually stunning campaign. But its $70 price point, while becoming an industry norm, is tougher to swallow given the actual development cost increases.
At the end of the day, publishers like Activision are charging more because they can. With millions of loyal fans ready to buy in, CoD has the brand power to drive prices higher and higher. Us gamers ultimately pay the cost.
Still, MW2 sets a new benchmark for AAA shooter quality and depth of content. If you can budget the extra expense, it delivers an elite CoD experience that can‘t be matched. I know I‘ve already got my copy pre-ordered and can‘t wait to dive in later this month!
