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For any particular company or even country to some extent (since the games industry is quite globalized), this is true. However, if there were widespread unioni
by jakeinspace 8y ago
For any particular company or even country to some extent (since the games industry is quite globalized), this is true. However, if there were widespread unionization among many of the biggest studios then that could conceivably lead to a market-wide price hike, which would be largely absorbed by consumers due to a lack of suitable substitutes. Yes, the supply/demand equilibrium point would shift and demand would likely drop somewhat, but I think it's quite likely that the market demand for top-tier games isn't perfectly elastic.
- Retric 8y agoThe optimal selling price for a game does to change becase developers add a fixed cost. Suppose you have 1 Billion in fixed costs and 1$ in per unit cost and are given two options. The equation is just (number sold) * (unit price - unit costs) and that 1 Billion dollar fixed cost is irrelevant when maximizing profit (or minimizing loss). What it would do is reduce the number of games created, as the industry becomes slightly less profitable. Which would then spread consumer spending over fewer titles and thus recuperate the burden of a union.