They compare the price and cost of making Red Dead Redemption 2 with Mario Kart World and are shocked: “How can they justify this?”
Nintendo might be setting a new standard for AAA games in the industry.
The Nintendo Switch 2 has been finally revealed this week, along with its prices, as well as that of its games, and fans did not take long to complain. Some have found different ways to show their concern for the high price tags, like bombarding the chat of the Nintendo Treehouse event, or posting on social media.
One ot the popular postings, compares the development costs of Red Dead Redemption 2 and Mario Kart World, provoking discussions among gamers. The claim highlights the stark contrast between the two games’ budgets and pricing, questioning whether Mario Kart World‘s price is justified. Let’s explore the facts, including inflation, tariffs, and the history of game pricing.
About budgets, price tags, and geneal context
Red Dead Redemption 2, released in October 2018, is one of the most expensive games ever made, with an estimated development cost of $540 million. This includes years of work by over 1,000 developers, extensive motion capture, and a massive marketing budget. The game launched at $60, which was the standard price for AAA games at the time.
Adjusting for inflation, the $60 launch price in 2018 would be approximately $70 in 2025. This aligns with the current standard pricing for AAA games, showing that Red Dead Redemption 2 offered exceptional value for its cost.
Mario Kart World, set to launch with the Nintendo Switch 2, has not disclosed its development budget. However, Nintendo confirmed that the game did not reuse assets from previous titles, introducing features like 24-player races, dynamic weather, and off-road mechanics. These innovations required significant resources, contributing to its $80 price tag for digital copies and $90 for physical copies.
Tariffs may also play a role in pricing. Recent U.S. tariffs on imports from Japan, where Nintendo manufactures its consoles and games, impose a 24% tax. While tariffs do not apply to digital goods, they could impact the cost of physical copies, further explaining the price difference.
Is the Comparison Fair?
While the tweet raises valid questions, comparing Red Dead Redemption 2 and Mario Kart World directly overlooks key factors, like rising development costs, inflation, manufactoring costs, and tariffs.
Games are becoming increasingly complex, with larger open worlds, advanced graphics, and intricate mechanics. For example, GTA 6 reportedly has a development budget of $2 billion, dwarfing GTA 5’s $265 million.
The cost of production, including salaries, equipment, and marketing, has risen due to inflation. This has pushed the standard price of AAA games from $60 to $70 in recent years. For physical copies, tariffs on imports from countries like Japan and Vietnam, where many consoles and games are produced, have increased costs.
The $80 price tag for Mario Kart World aligns with broader economic trends when considering inflation and tariffs. Adjusted for inflation, the $60 standard price of AAA games from the early 2010s would be approximately $75–$80 today, making Mario Kart World’s pricing consistent with rising development costs. Additionally, tariffs on imports from Japan and Southeast Asia, where Nintendo manufactures its products, contribute to higher costs for physical copies, which are priced at $90. These factors, combined with the game’s innovative features and lack of reused assets, help justify its price.
Analysts predict that $80 could become the new standard for AAA games, especially for titles with high production values like Mario Kart World and even more so in monsters like GTA VI. Rumors suggest that the base edition of Grand Theft Auto VI could cost $100, with special editions reaching $250. This would set a new precedent for pricing in the gaming industry.
A small chronology of game pricing
Game pricing has evolved significantly over the decades, reflecting changes in technology, development costs, and inflation. The Nintendo NES, released in 1985, sold for $179 at launch, with games priced between $10 and $60. Adjusted for inflation, the NES console would cost $523 today, and its games would range from $27 to $165. By comparison, the Nintendo Switch 2, launching at $450, is relatively affordable.
The SNES debuted in 1991 for $199, with games priced between $40 and $70. Adjusted for inflation, the console would cost around $430 today, and its games would range from $86 to $150. The SNES era saw an increase in game prices due to advancements in graphics and gameplay complexity.
The Nintendo 64 launched in 1996 at $199, with games priced between $50 and $70. Adjusted for inflation, the console would cost approximately $380 today, and its games would range from $95 to $133. The shift to 3D gaming drove up development costs, reflected in higher game prices.
It is also worth noting that the game cartridges were way more expensive to develop and produce than the different disk versions we’ve seen along the years, which has helped standarize prices, and obviously now with digital licenses more so.
The GameCube arrived in 2001 at $199, with games priced at $50. Adjusted for inflation, the console would cost around $330 today, and its games would be approximately $83. This era marked a stabilization in game pricing, with $50 becoming the standard for AAA titles.
The Wii launched in 2006 for $249, with games priced at $50. Adjusted for inflation, the console would cost about $370 today, and its games would be around $74. The Wii’s innovative motion controls and casual gaming appeal kept prices competitive.
The original Nintendo Switch debuted in 2017 at $299, with games priced at $60. The Switch introduced hybrid gaming, bridging handheld and TV play.
The Switch 2, set to release on June 5, 2025, will retail for $449, with games priced between $70 and $80 for digital copies and $80 to $90 for physical copies for what has been confirmed so far. Adjusted for inflation, the console’s price aligns with historical trends, while the higher game prices reflect increased development costs and tariffs.
While the first games varied widely in price, modern AAA titles have standardized at $70, with exceptions like Mario Kart World pushing higher due to increased development costs and tariffs. This could mean that Nintendo is trying to stay ahead of the curve.
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