The Evolution of Console Game Prices: A Historical Perspective
The recent announcement by Nintendo that Mario Kart World will retail for $80 in the US has sent shockwaves throughout the gaming industry. This new price point marks a significant departure from the traditional $60 ceiling that has been in place for many years. But is this price hike truly unprecedented, or is it just a reflection of the changing times? To answer this question, let’s take a step back and examine the historical context of console game prices.
Adjusting for Inflation: A Crucial Perspective
When we look at the nominal prices of console games over the years, it’s easy to get a distorted view of the market. However, adjusting for inflation provides a more accurate picture of the industry’s pricing trends. By using the Bureau of Labor Statistics CPI calculator, we can normalize the nominal prices to consistent February 2025 dollars.
The 1980s: A Time of High Prices
The 1980s were a time of high prices for console games. New cartridge games often retailed for over $100 in today’s money, thanks to high manufacturing costs and limited competition. While it was possible to find older and used cartridges at a lower price, must-have new games often cost the equivalent of $140 or more in today’s money.
The 1990s and 2000s: A Period of Stabilization
The introduction of CD-based consoles in the late 1990s led to a stabilization of prices. By the beginning of the 2000s, nominal top-end game pricing had fallen to around $50, and only rose back to $60 by the end of the decade. Adjusting for inflation, however, shows that these early 21st-century games were still demanding prices approaching $90 in 2025 dollars.
The 2010s: A Decade of Inflation
The 2010s saw the de facto $60 price ceiling remain remarkably consistent throughout the decade. However, inflation started to eat into the value of this price ceiling. Adjusted for inflation, the nominal average pricing we found for our game “baskets” in 2013, 2017, and 2020 ended up almost precisely equivalent to $80 in constant 2025 dollars.
The Post-COVID Era: A New Reality
The post-COVID era has seen a significant jump in inflation, with annual price increases still above the 3 percent level. This means that $80 spent on a game today has the same value as about $65 spent on a game in 2020. This also means that the $60 Nintendo charged for Mario Kart 8 Deluxe in 2017 is worth about $78 in today’s money.
Actionable Insights and Conclusion
The recent price hike for Mario Kart World may seem sudden, but it’s actually a reflection of the changing times. The post-COVID era has seen a significant jump in inflation, and the gaming industry is no exception. While some gamers may be taken aback by the new price point, it’s essential to remember that Nintendo is offering a bundle with the Switch 2 and Mario Kart World packaged together, which values the game at just $50.
In conclusion, the evolution of console game prices is a complex and multifaceted topic. By adjusting for inflation and examining historical trends, we can gain a deeper understanding of the industry’s pricing dynamics. As the gaming industry continues to evolve, it’s essential to stay informed and adapt to the changing times.
Summary
- Mario Kart World will retail for $80 in the US, a new high-water mark for the game industry.
- Adjusting for inflation shows that console game prices have been higher in the recent past.
- The post-COVID era has seen a significant jump in inflation, with annual price increases still above the 3 percent level.
- The gaming industry is no exception to the effects of inflation, and the recent price hike for Mario Kart World is a reflection of this new reality.
- Nintendo is offering a bundle with the Switch 2 and Mario Kart World packaged together, which values the game at just $50.