Why Are Video Game Prices Rising So Steeply?

Ready to pay triple digits for GTA 6? That could be in the cards due to rising video game prices. The industry is moving toward higher costs that will undoubtedly upset gamers worldwide. So, why will people pay more for their favorite titles? Here’s what you need to know about the future of in-home entertainment.  

Explaining the Recent Rise in Video Game Prices

The cost increases didn’t come suddenly — they’ve been bubbling for a few years. However, the price tag of anticipated games could rapidly increase this decade. Here are seven reasons to explain it. 

1. Reacting to the Tariffs

The most recent cause of price increases is the tariffs. Consumers are already worried about automobile costs due to the trade war with Canada and Mexico. However, they might feel the hit on their game consoles.  

Tariffs may directly affect future Nintendo Switch 2 game prices, considering the levies on Japan. The gaming company is an innocent bystander in the trade war and could increase prices. In April, President Trump announced a 24% tariff on all Japanese goods but reduced it to 10% for 90 days. Still, gamers should expect increased prices. 

The president has made the tariffs less predictable, but Nintendo isn’t waiting for a concrete policy. Anticipated releases will increase in price, including some fan favorites. The Japanese gaming company said Mario Kart World will be $80, though the Nintendo Switch 2 price will not be affected.

2. Accounting for Inflation

The video game industry is just one example of how inflation impacts prices. Costs have increased for nearly everything you can imagine. You could’ve gotten a Corvette for a few thousand dollars in the 1960s, but a new one today is much more expensive. 

Increases are expected in most industries, though video game prices over time have mostly escaped them. For example, Super Mario Bros. 3 was among the most popular video games of the NES era. If you bought it for $50 in 1989, that game would be about $128 in today’s money due to inflation. 

Video game prices have remained relatively stable in the last two decades, with most sitting around $60 for AAA titles. However, the announcement about Mario Kart World shows how much a Nintendo Switch game is in the modern day.

3. Resetting the Market

The biggest test for video game prices will be GTA 6. How much will Rockstar Games charge for the most anticipated release of all time? Experts say you could pay up to $100 to run around Vice City. If it costs that much, it would reset the market and set a pricey precedent. 

The IGN report says industry insiders want a more expensive GTA 6 because it would allow other developers to charge just as much. Video game companies have kept prices pretty low, considering the cost rises elsewhere. Therefore, the next Rockstar game will have significant ramifications. 

Epyllion CEO Matthew Ball said a $70 GTA 6 would be cheap and undervalued compared to past releases. While a company like Rockstar considers profits, it also understands the need to pay developers good salaries that account for inflation. 

4. Considering Production Costs

Today’s video games are more than just developers and artists sitting in a studio. Modern releases require feature film-level budgets to get the job done. For example, GTA 5 required about $137.5 million for development and around $250 million overall. 

Creating high-level games includes long development cycles — just ask Rockstar. The company has easily spent 10 figures on GTA 6, considering fans have waited over a decade for the next release. Nowadays, you need even more programmers, testers and writers. 

Don’t underestimate the technology costs associated with new games. Developers now have better physics engines, high-definition textures and advanced animation systems to improve the experience. After all, who wants 2005 graphics in a 2025 game?

5. Paying for Game Support

Playing online lets you connect with friends and people worldwide. From Call of Duty to Fortnite, you can wear a headset with your buddies and beat challenges. However, maintaining the servers costs time and money for developers, thus increasing the costs. 

For instance, Overwatch 2 had a nearly 60,000-user average in January and February 2025. Keeping these massive games running requires significant hardware, such as high-performance servers. You need RAM, advanced solid-state drives and state-of-the-art CPUs for processing. 

Then, the software is a whole other story. Developers need operating systems like Linux and management systems like MySQL to store the players’ stats and data. While playing online is easy for gamers, a lot goes on behind the scenes to protect your information and the game’s integrity.  

6. Retaining Human Developers

Artificial intelligence (AI) is already carving a role in the video game industry. If you play Pokémon Go, your data trains AI map models for a company called Niantic. The robotic takeover is here, whether gamers like it, though companies can’t completely erase human efforts. They need people to create the games and develop ideas. 

The video game industry is currently at a fork in the road. Do companies invest in AI, which could alleviate labor costs in the long run? Alternatively, they could expend capital on humans and ensure quality content. Robots aren’t equipped to create quality games because they can’t easily replicate human emotions. 

Video game companies know they need humans in the present and future. Therefore, it’s necessary to pay these professionals what they’re worth. If not, they’ll move on to other companies or leave the industry entirely. If the developers exit, we’ll be left with low-quality games. 

7. Consumer Demand

Let’s face it — players will pay a premium for quality. If Microsoft decides to recreate the classic Halo games, the community will fork over money for them. Gamers would moan and groan about the price until they saw their friends and creators playing it. Then, they’ll cave and pay the price.

It boils down to basic supply and demand principles. If Mario Kart has an incredible worldwide following, Nintendo is justified in raising the price. However, the staying power of increased video game prices depends on what people are willing to pay. If there’s a profit drop, they may reconsider the costs.

If you don’t want to pay high prices, you could wait for a Steam or PlayStation Store sale. However, those times are pretty unpredictable. How much a Nintendo Switch 2 will cost depends on how much you’re willing to pay for it.

The Ramifications of Rising Video Game Prices

The games are getting more expensive, and other products are feeling the heat. For example, Sony announced PS5 price hikes in Europe, Asia, Africa and Oceania. If you want a new game or console for Christmas, you’d better start saving now. Unfortunately, it doesn’t look like they’re getting cheaper anytime soon.