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TheSantader25

What Are Your Thoughts on The Potential Increase of Video Game Prices?

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TheSantader25

Title says it all. 

 

After T2, Sony's first party titles also appear to be heading towards a 70$ price tag. 80 Euros for europeans(WTF?). Probably a nightmare in Canada as well. It's only a matter of time for pretty much every Triple A title to cost this much. These companies are gonna slowly make this the norm and of course there's gonna be an outrage at first. But in the end we'll accept it as the helpless consumers that we are. Just like how MTX is normal nowadays. Only this time the additional price is mandatory. No escape from this one. 

 

We've already seen devs ship half assed video games that run horribly for 60$ + Microtransactions + Lootboxes + Cut Content sold as overpriced Season Pass. Apparently that's not enough. Greed doesn't stop. Apparently DeVeLoPmEnT cOsTs are too much nowadays. Yes they are. But the gaming community is way bigger as well and these companies are already making a lot more profit than the past. That's why we see that pretty much every new title that drops breaks records in terms of sales no matter how sh*tty the quality is in comparison to its predecessor. Not to mention the money made based of MTX. Jeez. 

 

I'm gonna be way more careful with what I purchase next gen. No more paying full price for half assed games. Usually there are 1-2(3 at best) games that are worthy of the full price tag. I don't have the time and money to pay for their greed anymore. I'm gonna be super selective. 

Edited by TheSantader25
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Standard Deluxe 59

It's just the way it goes. I'm surprised it didn't happen sooner. I'm indifferent about it though, the push for online centric games has started driving me away from them anyway. 

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Detective Phelps

It's frustrating how these companies give out huge bonuses to the guys at the top, yet it's the average devs who have to spend time away from their families slaving away. I'd be fine with paying more for my games if that money actually went to devs, but knowing that it's going to some greedy cunts at the top makes it feel like a waste of money tbh. Anyway, this is the main reason why I avoid digital copies on consoles (it's ok on PC, steam sales rock), they are overpriced as hell and rarely go on sale, and even then it's better to get a physical copy. 

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Dryspace

I have to get this in before the misinformation from people defending against their own interests:

 

Inflation has very little effect on the sale of information.

 

When you want to sell a videogame to a million people, you don't make a million video games, you make a video game.

 

With a physical product, there is a certain significant fixed cost associated with the production of each additional unit. But when information is the final product, there is a negligible cost associated with the production of each additional unit. If I make a video game today, it costs me, for all intents and purposes, the same amount to make and sell one copy as it does to make and sell one billion copies.

 

With a physical product, I can't just spend, say $1M, and then sell to as many people as want one. That $1M will get me a certain number of units, and if I want to sell more, I have to spend more to produce additional units. This concept can be demonstrated by asking a person to answer these questions:

 

1. "If I sell Gizmos for $10 each, and my cost to produce each Gizmo rises by $1, how much do I have to raise the price in order to make the same gross profit as before?"

 

The answer, of course, is $1.

 

2. "If I sell copies of a videogame for $60 each, and my cost to produce a video game rises by $10M, how much do I have to raise the price in order to make the same gross profit as before?"

 

The answer, of course, is that there is no answer. Because my gross profit on each copy I sell is almost entirely a function of how many copies I sell.

 

If I spend $100M on a game, what I do is take a selling price--say $60--estimate my average net revenue on each copy--say $40--and then divide my production cost by that amount.  That gives me my break-even sales point. In this case, I have to sell 2.5M copies to break even, after which every copy sold is almost 100% profit. If I sell 3M copies at that $40 net, I make a gross profit of $20M. At 5M copies I make a gross profit of $100M.

 

If a game costs $100M and I sell one copy, that copy cost $100M and would have to be sold for $100,000,010 in order to make a $10 gross profit. If I sell two copies, the cost of each copy is $50M. For 100K copies it's $1000, for 10M copies it's $10, and for 50M copies it's $2.

 

Some people may be thinking that there are fixed and variable costs that are incurred after the sale of a game, such as customer service, and perhaps server costs, but with Web distribution these are very small relative to production costs, and further, I'm certain they are already factored into the development costs for AAA companies. The effects of financial details that I have left out are negligible compared to the effect of information multiplication.

 

The cost of distributing videogames has dropped markedly compared to the cost of 10 years ago, and even more compared to 20 - 30 years ago. NES games were as much as $120 (!!!) USD in today's dollars because they were literally electronic devices (cartridges) that were very expensive to produce. Games on floppy disk were more expensive than CD or DVD, and the cost of documentation, packaging, shipping, warehousing (let's not even get into the "feelies" that many games used to have) was far more than the cost of Web distribution.

 

The price of videogames does not "need to go up". It's true that due to inflation, the price of games effectively decreases if the nominal price stays the same. But because of the nature of selling information, it's not the case that this means a subsequent decrease in profit.

Edited by Dryspace
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Jason

I'd be fine with it if the same companies weren't a) loading their games up with microtranactions and b) exclusive to one platform.

 

Absolute garbage from every company that does it and it's as simple as that. The EU and UK have been absolutely shafted as well, US prices raised $10, which is bad, but UK prices went up £15, which is ludicrous. Not to mention that UK game prices already went up during this gen, with us paying $65-70 for games digitally as standard now.

 

I don't know what Microsoft are doing regarding game prices and it wouldn't surprise me if they ended up raising them too at one point, but it makes Games Pass look like even better value now. If £70 becomes standard in the UK I fully expect to buy significantly less games and rely heavily on subscription services.

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Shadowfennekin

It's dumb, just makes the usual bullsh*t even more unacceptable

 

1. DLC that is obviously held off for expanded/ultimate editions or to be sold at $5/10 a piece

2. "Exclusive" content for one console, case in point Sony being greedy f*cktards with Spider-Man in Avengers! They do NOT own the character! All that did was turn me off Avengers, cancelled my pre-order and swore off ever buying another Piece of sh*t sony console  🙄

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GhettoJesus

This is how they milk you. You will get used to the slowly rising prices and before you know it they will hit 80$, then 90$ and so on. People are going to buy it anyways so you can't really protest it. I can imagine them slashing the price quickly. Milk your customers for a few weeks or months with the 70$ price and then reduce it to 60$

 

By the by I am surprised they are now separating Euro and USD unlike with the console which costs 500 both in Euros and USD despite the fact that 500$ equals 420€ right now. Well not like separating them is good because 70$ equals 60€ at the moment,  the price of a AAA game on steam.

 

I just cant support this sort of greed. But again, we are just a loud minority. We wont change Sony's mind.  I am afraid that other companies will follow this trend.

Edited by GhettoJesus
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Yokelsson

I'm not their cow to be milked. I'm not paying 70-80 EUR for a video game. Especially not for the base version. It's as simple as that.

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trip

We have been living it easy with video games not scaling their prices to match the final product.  Gamers always think they are "owed" something.  Gaming is entertainment...not a necessity. 

 

An expensive date that lasts only one evening and doesn't even end with anything "exciting" can cost way more than a video game which can provide hours, days, and sometimes months of entertainment. 

 

I always like to use the Atari Adventure/Skyrim argument...so I did a little graphic.

xpIcG08.jpg

 

 

We get so much more for our gaming dollars these days that it is crazy to think anyone bitches.

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GrudgefromSanAndreas

one day games with 1tb size or more on all platforms will cost $1024 or much more

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Jason
33 minutes ago, trip said:

We get so much more for our gaming dollars these days that it is crazy to think anyone bitches.

We get so, so much more monetisation as well. Do not fool your self into thinking many of these publishers are struggling to cover development costs which is the ONLY reason they are giving for the price hike, the rise of microtransactions is the reason the stock prices of these companies exploded this generation, games like NBA and Fifa are making a billion a year easy. For companies like Activision and Take-Two this is nothing more than them hiking prices to make even more money to line shareholders pockets.

 

I am more willing to accept raised prices for games without any sort of monetisation however companies like Sony limit them selves to one platform. The pro-consumer move would be releasing their games on other platforms day 1 (PC, at least) but they aren't going to do that so they're doing an anti-consumer move instead.

 

And again, the US is taking the lightest hit here. Other parts of the world are getting f*cked right over. UK prices are going up by $20, Euro prices $23, Australia and numerous other parts of the world are seeing similar price hikes.

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trip
8 minutes ago, Jason said:

We get so, so much more monetisation as well.

What do you mean?  I only paid $60 (total) for the years of entertainment Skyrim provided.

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Jason
Just now, trip said:

What do you mean?  I only paid $60 (total) for the years of entertainment Skyrim provided.

Skyrim released in... 2011? Microtransactions boomed this generation due to the insane success of titles like Fifa Ultimate Team.

 

The average modern AAA game has microtransactions, including some single player titles. Most publishers already "solved" the increase in development costs, this is them squeezing out the last drops of milk cause they believe (and probably know) that they can. Basically, I find it hard to swallow the price hike under the reasoning that development costs increased when the video game industry is more profitable than it has ever been - by a country mile too.

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Yokelsson
1 hour ago, trip said:

We have been living it easy with video games not scaling their prices to match the final product.

Do I need to remind you that in your own country wages have not scaled with productivity for the last 40 years? People are supposed to be making more than they used to. But they don't. And they're being financially crippled by student loans, mortgages etc. God forbid they get sick. Almost instant bankruptcy for a lot of folks. They have to pay more for things that used to cost less. Now video games are added to this list, despite the fact that video game industry has never been more financially successful. And even if this weren't true, as a consumer you should never take the side of a corporation. That's just stupid. What do you gain from simply accepting their decisions that don't benefit you? Apathy is not without consequences.

Edited by Yokelsson
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trip
52 minutes ago, Yokelsson said:

Do I need to remind you that in your own country wages have not scaled with productivity for the last 40 years? 

They(wages) sure have scaled way more than video game costs.   Silly to say otherwise. 

 

A generation that claims to be "financially crippled" shouldn't factor in.  What about the kids that didn't go to collage and have a decent paying job?

 

I'm well aware of paying more, or paying for things you didn't have to in the past.  I have a mortgage...  I also grew up in a time when TV was free and there wasn't an internet and cell phone bill(s).  It costs way more to live now then it did for my parents...but then again my dad was probably making a quarter of my salary at the age I am now....and his job was equally as stressful and demanding.

 

 

@Microtransactions - who says you have to participate in AAA titles microtransactions?

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JON22

In less I really want the game, or it's already piss cheap, I wait for a sale. I'm mainly digital now. Waiting for gta to go on sale so I don't need to use the disc for Xbox.

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Dryspace
4 hours ago, trip said:

I always like to use the Atari Adventure/Skyrim argument...so I did a little graphic.

xpIcG08.jpg

 

We get so much more for our gaming dollars these days that it is crazy to think anyone bitches.

 

I deliberately tried to get in early in order to prevent this kind of misinformation *shakes head*, lol. If you would have read my post, you would have seen your ideas refuted and not wasted your time.

 

Atari Adventure was literally an electronic device. Not just physical media--an actual piece of electronics. That's why those games cost so much. The cost of the optical discs that Skyrim shipped on are actual pennies each. And Skyrim downloaded from the Web? Lol.

 

Please read my post.

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trip
1 hour ago, Dryspace said:

Atari Adventure was literally an electronic device. Not just physical media--an actual piece of electronics. That's why those games cost so much. The cost of the optical discs that Skyrim shipped on are actual pennies each. And Skyrim downloaded from the Web? Lol.

 

Please read my post.

You're reaching.

 

No.

 

1 person is on the credits for Atari Adventure.  1 person had to get paid to make it.

Take a look at the credits for Skyrim.  https://en.uesp.net/wiki/Skyrim:Credits they all needed a paycheck cut.

 

 

Do people really think we don't get more for our gaming dollars these days?  Hasn't it always been this way?

Edited by trip
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Commander S

What bugs me is when, say, Strauss Zelnick tries to bring up how "games cost more to make", more as a 'thought-terminating cliché' than an actual reason. Because think about it:

 

- Games only cost more if you chase higher production values. Yeah, the entire culture has normalised the current "AAA" arms race, where demand for higher-fidelity graphics, longer/more expansive experiences, never-ending 'live services' which require constant creation of new Content™, etc. - but it's not like publishers couldn't market something else instead, and put the brakes on the excess train. Games don't 'need' to be bigger, grander, etc. - throwing money at things like horse balls doesn't make for better game design, after all. To indulge in a bit of hyperbole, it's like a meth dealer saying they only make so much because gosh darn it, demand from tweakers is so damned high...

 

- But okay, so even working under the assumption that "AAA" somehow 'must' outdo the previous high-water mark for graphical 'realism', driving up production costs, it's not like the likes of R* are living hand-to-mouth, are they? Same as with the 'if people didn't spend on microtransactions, DLC wouldn't get made' argument - for instance, R* sold more copies of GTA V in 24 hours than CDPR did with the Witcher 3 in one year. There's no doubt that some companies are sitting on huge piles of money, to the point where it's arguable that R* could have easily financed GTAO update development from GTA V sales, without needing Shark cards (like how both Monster Hunter: World and Iceborne managed to put out a year of free updates, relying largely on regular sales instead of sales and limitless microtransactions). There is a truth to the idea that 'without massive amounts of ongoing revenue, post-launch content wouldn't happen', but it's because if shareholders and executives didn't feel they were making enough of a return, they'd call time on production - and without bringing up that bit of context, just saying 'without microtransactions, updates wouldn't happen' in isolation sounds like 'if players don't keep the money coming in, we can't afford to keep making new stuff'. They clearly can afford it, because again, some of the biggest companies are sitting on sh*tloads of money from previous sales juggernauts.

 

 

And yeah, there's something a bit rich about the same people arguing that uncapped microtransactions are somehow 'necessary' to finance increasingly expensive game development (often by arguing that "if we didn't add totes optional in-game spending to all our games, we'd have to jack prices up"), only to then go and jack up prices anyway, because that's also 'necessary'. Oh, but the microtransactions aren't going away, though - presumably the logic is that players have now just accepted them as a normal part of the "AAA" experience, and so now it's just a case of getting $70 base price normalised in turn. And it'll happen, because the vast majority of people will bite the bullet and accept the hike, rather than drawing a line in the sand and saying they won't spend more than $60.

 


Personally, I can't wait for GTA V to come out on next-gen consoles for $70, with whatever texture/lighting/etc. upgrades being seen as justification enough for pricing a (re-)re-release of a fundamentally eight-year-old game at the new 'normal' (even though, for comparison, Saints Row the Third Remastered has had more drastic upgrades, includes all the DLC, and still only costs $40). :sigh:

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Dryspace
3 hours ago, trip said:

You're reaching.

 

No.

 

1 person is on the credits for Atari Adventure.  1 person had to get paid to make it.

Take a look at the credits for Skyrim.  https://en.uesp.net/wiki/Skyrim:Credits they all needed a paycheck cut.

I can't respond to this because it's not clear to me what your point is. What....If 5,000 people contribute to a game in some capacity or another, then the....the sales price should--should be....

 

No, sorry--I'm not getting your point.

 

3 hours ago, trip said:

Do people really think we don't get more for our gaming dollars these days?  Hasn't it always been this way?

I don't. I'm not in the habit of compaining about this particular topic, and it has nothing whatever to do with the subject of videogame sales prices, but no: I don't.

 

Do you also believe that one who watched Indiana Jones and the Kingdom of the Crystal Skull got more for his movie dollars than one who watched Raiders of the Lost Ark, because the former cost over 3.5 times more to make in today's dollars?

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Jason

"In fact, GTA Online will have another record year this fiscal year for us. And this is obviously not true only for Take-Two; it's true for the entire industry."

 

- Strauss Zelnick, FOUR days ago

 

But yea, publishers are supposedly hurting at the $60/£50-55 price point.

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The N. Bellic Man
On 9/18/2020 at 1:59 AM, Detective Phelps said:

Anyway, this is the main reason why I avoid digital copies on consoles (it's ok on PC, steam sales rock), they are overpriced as hell and rarely go on sale, and even then it's better to get a physical copy. 

Do you actually own a console? I don't know about PS but Xbox has some kind of sale going on any given moment. And that's pretty ridiculous given the fact that Game Pass gives you so many AAA titles free. It's almost like you don't even have to pay for games nowadays. Physical Copy? Give me a break. When I bought The Division 2 and it required a 60 GB (or so) patch on a release day I thought that it was time to completely move on to the digital platform (considering that you can download a game before it is actually released). A couple years ago I had most of my games on a disc only but nowadays it seems pretty pointless. Of course there are some games that doesn't need big patches, but the whole industry have recently been pretty patch happy.

 

 

I don't mind if games are getting a little bit more expensive, but on the other hand I don't want to pay anything when games are not actually good. For proven titles it's not a problem (I could easily pay double when the next GTA is finally released), but games that are a technical mess or full of hand-holding and driven by some kind of agenda should be free. Or I should get paid for playtesting their unfinished/half-assed product. Still I'm not gonna cry about it if and when I happen to buy a game that comes up short of my standard.

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Yokelsson
15 hours ago, trip said:

They(wages) sure have scaled way more than video game costs.   Silly to say otherwise. 

 

A generation that claims to be "financially crippled" shouldn't factor in.  What about the kids that didn't go to collage and have a decent paying job?

 

I'm well aware of paying more, or paying for things you didn't have to in the past.  I have a mortgage...  I also grew up in a time when TV was free and there wasn't an internet and cell phone bill(s).  It costs way more to live now then it did for my parents...but then again my dad was probably making a quarter of my salary at the age I am now....and his job was equally as stressful and demanding.

 

 

@Microtransactions - who says you have to participate in AAA titles microtransactions?

Devs and publishers are becoming increasingly aggressive with microtransactions. And we knew what was going to happen before it did. People like you didn't. You still don't. Games are being designed to entice you to purchase microtransactions. This can take various forms, from slowing down your progression (Battlefront II), to making the game pretty much revolve around cosmetics and then making the best looking cosmetics locked behind a paywall (latest Avengers game). It's bad game design on purpose. Why would we, as gamers and consumers, support this in any way, shape or form? Why should we quietly accept it?

Edited by Yokelsson
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trip

I hear ya.  I'm no fan of micro transactions but that is a different argument.   And companies that "make money" often do gross things to make more money.   

 

The base cost of games going up $10 is just a part of life.  With very few exceptions...sh*t goes up in price.

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el carlitos

As customer I am fine with the price increase. I will decide if a game is worth my money or not. Otherwise I will wait for a discount or won't buy it.

For PS4 the only game I payed full price was GTA V. 

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Dryspace
14 hours ago, trip said:

The base cost of games going up $10 is just a part of life.  With very few exceptions...sh*t goes up in price.

It's only a part of life if you willingly allow it to be. As you said--you're right--with very few exceptions, stuff goes up in price.

Information is one of those exceptions.

 

EDIT: To clarify: You yourself made the point that videogames were $70+ in today's money over 40 years ago. And now, somehow developers can afford to spend 1,000 times as much to make a single game, and yet sell it for less money. I explained why that is.

Edited by Dryspace

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Jason
12 hours ago, el carlitos said:

As customer I am fine with the price increase. I will decide if a game is worth my money or not. Otherwise I will wait for a discount or won't buy it.

For PS4 the only game I payed full price was GTA V. 

This is a fine stance to have on the matter individually, however it's not one that works generally. Publishers are cashing in on the fact that they know people will cave in and pay the price they're offering anyway, as we've seen with stuff like publishers selling "early access" editions of games for extra cash, they're hugely popular. The fear of missing out is an exceptionally strong mentality when it comes to anything but especially games and publishers exploit it massively so.

 

They are raising prices to increase company profits, not developer wages. They are raising prices to increase company profits, not improve the games. The proof we need for this is already here, microtransactions have massively inflated these companies profits in the past 10 years or so and the quality of games has not went up on average, day 1 patches are as common as ever, games launching with little content, in broken states, etc etc. Their reasoning for raising prices is complete and utter waffle and that is the issue - gamers won't benefit from this in any shape or form.

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Commander S
3 hours ago, Jason said:

 

They are raising prices to increase company profits, not developer wages.

 


Yup - and it's not even new. You see heads of major companies living in mansions, owning private airstrips and luxury cars, all while reports come out of excessive crunch (and worse...) for the devs doing grunt work, and it's been like that for years - same with how you'll see the likes of Activision go through waves of layoffs on the dev level, while the shareholders celebrate another record year of growth, and Bobby Kotick gives himself a juicy bonus, all on the back of the hard work of people who've just lost their jobs as 'thanks' for their efforts. :turn:

 

Yanno, maybe if (for example) folks like the Housers didn't live in multi-million-dollar mansions, or the likes of Tim Sweeney didn't fork out for Lamborghinis, there'd be more money to go around to pay wages and other development costs, and then they wouldn't need to resort to uncapped in-game spending and/or price hikes. I'm talking nonsense, I know... :p

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Zello

It's complete and utter bullsh*t. I hate the price increase. I don't think there is much we can do at this point though.

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owl-man

I thought games had been expensive for years, hell I've got a PS2 copy of Midnight Club 2 from an op shop with it's original price sticker of 99.55 AUD on it, which means the person who originally paid for that copy of the game paid what would now be $148 for it back in 2003.

Edit: I was actually off on the price by a little, the tag is actually $99.95, so $149 today, pretty much the same amount of money something like FH4 Ultimate edition currently costs, maybe a little more.
3Yy7zUPRuQDgp9sQtNef6f4gHXhvrExaH3bAvEVK

Edited by owl-man
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