Video game prices contribute to UK inflation
Rising prices of recreational and cultural goods and services drives highest CPI since 2012
The price of video games has been highlighted as a key factor in the latest rise in UK inflation, a report claims.
Figures released by the Office for National Statistics show that the Consumer Prices Index has risen by 3.1% in the twelve months ending November 2017. This is an increase on the 3.0% recorded in October and the highest since March 2012.
While the largest contribution to this increase was identified as air fares, the ONS notes that: "Rising prices for a range of recreational and cultural goods and services, most notably computer games, also had an upward effect."
The increase in prices for video games, toys and other hobbies between October and November was much sharper than in 2016, with the ONS adding: "This effect came from computer games whose prices are heavily dependent on the composition of bestseller charts, often resulting in large overall price changes from month to month."
This is no doubt partially down to the sheer number of new releases over the past couple of months, traditionally the busiest time for the games industry's release slate.
It's also worth noting that while the biggest new releases have often been heavily discounted within a few weeks of launch in the past, there seems to have been less significant price cuts in 2017. Certainly, Black Friday appeared to have less of an impact when it comes to titles less than a month old dropping from £50 to around the £20 to £30 mark.
That said, the ONS' declaration that computer game prices have risen to the point where they can be singled out as a contributing factor to UK inflation is somewhat frustrating.
By and large, video game prices have remained relatively static over the past decade, with new releases almost always around the £50 price point - despite the rising cost of development. This is something developers commented on when discussing the increasing need for monetisation mechanics like loot boxes, controversial though they may be.
Similarly, publishers have previously seen a backlash when trying to adjust prices to account for economic shifts. Most notably, Paradox Interactive attempted to raise the cost of its games earlier this year and was immediately met with consumer complaints - to the extent where the publisher was compelled to retain its previous price points and offer refunds to those affected.
Time will tell whether the impact on UK inflation further deters publishers and retailers from increasing the cost of games.