Does a 'Mobile-First' Approach Limit Console Game Pricing?
In recent years, several high-profile titles have successfully launched on both mobile and console platforms, blurring the lines between the two. Games like Genshin Impact have demonstrated that mobile platforms can offer a comparable experience to console editions, thanks to advancements in device performance and investments by companies like Netflix in mobile gaming. However, the perception of mobile games as being inferior to PC and console games persists, affecting price sensitivity and pricing strategies for cross-platform releases. According to Michiel Buijsman, lead analyst at Newzoo, the key factor in determining game pricing is the pre-existing value perception, with a lower ceiling for premium games on mobile compared to PC and console. Research firm Niko Partners found that the mobile gaming audience is largely accustomed to the free-to-play model, which limits the success of mobile-first titles outside of this model. The expectation of games being free-to-play means that the overall price positioning for mobile titles is effectively capped. However, there are ways to circumvent this value cap, such as offering premium-priced starter editions with in-game bonuses. As a result, premium mobile titles are often capped at lower price points than their console counterparts. Developers like Tommy Prentice and Marcus Sanders are grappling with pricing issues, considering factors like market trends, player expectations, and the dominant free-to-play model on mobile. Some developers, like Sanders, are opting for a uniform price point across platforms, despite the potential for lower revenue on mobile. The hardware specs of mobile devices can also impact price perception, with screen size being a significant factor. However, with the increasing power of mobile devices, some publishers are reevaluating their pricing strategies to reflect the parity in quality between mobile and console versions.