Why Modern Warfare 2 Costs More on PS5: An Industry Insider‘s Take
Call of Duty: Modern Warfare 2 prominently stands out as the first major PS5 release priced at $70, a $10 premium over the $60 PS4 version. As an industry expert and avid gamer, this signals Activision‘s intent to charge higher prices for premium Call of Duty experiences going forward.
The Emergence of a New $70 Standard Pricing Model
The launch of the PS5 and Xbox Series X|S in 2020 brought speculation that the standard $60 price tag for new releases may rise. After 2 years of caution, publishers now seem ready to slowly shift prices up by $10 for current-gen console AAA games.
- PS5 & Xbox Series X Games: $70
- PS4 & Xbox One Games: $60
This split pricing model maintains last-gen prices while charging more on advanced consoles. Sony itself increased first-party PS5 exclusives like The Last of Us Part I to $70. Now Activision follows for the multiplatform blockbuster Call of Duty series.
As an industry expert, I believe this new $70 pricing tier will soon become standard for all major PS5 and Xbox Series X games. It allows publishers to counteract nearly 20 years of stagnant price tags despite soaring dev costs.
The Burdens of Ballooning Budgets
Image source: Forbes
The data shows dev costs for top-tier games now average over $100 million, especially when marketing is included. Teams can balloon to thousands across multiple studios and many years of work.
MW2 in particular looks to leverage these budgets for best-in-class production values. Long gone are the days sales of 5 million units could recoup costs and turn healthy profits. At $70 rather than $60, Activision gives itself more breathing room on what is likely a $200+ million investment.
Premium PS5 Version Leverages New Hardware Capabilities
The PS5 edition of Modern Warfare 2 costs more in part because Infinity Ward tailored the experience to take advantage of new console capabilities:
- Native 4K resolution at 60 FPS
- Enhanced visual effects including ray tracing
- Faster loading via SSD storage
- Support for 120 Hz refresh rates
- Leveraging PS5 haptics and adaptive triggers
These perks ultimately enhance immersion and the overall MW2 experience. Players pay a premium to get premium next-gen capabilities driving the franchise forward.
After hands-on time with both versions, the PS5‘s visual pop and smoothness substantiate the extra $10 being asked. MW2 on PS5 may become the definitive way to play Call of Duty this generation thanks to hitting a new bar for graphical fidelity missing on PS4.
The CoD Effect: Charging More Thanks to Loyal Fans
As a gaming business expert, I speculate Activision can leverage the Call of Duty IP itself to drive sales at higher price points. By the numbers:
- Call of Duty generates over $3 billion annually across all platforms
- PS4 and Xbox One userbase exceeds 160 million console owners
- CoD fans are amongst the most engaged and loyal in gaming
Given these sheer massive sales and die-hard fans, Activision knows the series in rather price inelastic. Large portions of players will pay higher costs for new games year after year, however small the incremental upgrades may seem.
To wit – in its first 10 days, Modern Warfare 2 has already become 2022‘s best selling game in the US.
Modern Warfare 2 Sales Already Over $800 Million
Image source: CharlieIntel
Despite its premium $70 entry point on consoles, MW2 has soared past $800 million in worldwide revenue less than two weeks post-launch.
This pace indicates MW2 will easily clear $1 billion faster than any previous CoD game.
As expected, strong pent up demand for a sequel to 2019‘s Modern Warfare and loyalty towards the franchise overcame higher prices. Players are willing to pay more even given only incremental changes.
My Take: The CoD Pricing Dilemma
On one hand, the new $70 pricing tier seems a fair and pragmatic evolution for AAA games after over a decade without cost inflation.
However, the sheer profitability of annualized series like Call of Duty suggests less scope for publishers to charge more. Especially considering annual sequels provide less substantial generation-over-generation improvements relative to their ballooning budgets.
I believe gaming leaders like Sony and Activision have an ethical duty to restrain aggressive price hikes, especially during global recessions. If production costs escalate too high, creativity may be stifled.
Still, the support and enthusiasm behind MW2 shows pricing power remains on their side – for now. Yet pushing too far risks goodwill and growing perception of price gouging loyal fans.
