'Modern Warfare 2' set high launch price

Activision has announced a high launch price for Call of Duty: Modern Warfare 2 as publishers react to growing cost pressures.

The company has confirmed that the highly-anticipated first-person-shooter will carry a RRP of £54.99 when it is released this November.

The follows suggestions that consumers will have to pay much more to purchase many of the major releases in the fourth quarter of 2009, primarily because high development costs and unfavourable currency fluctuations are putting greater pressure on the margins of publishers.

Speaking to MCV, THQ's executive vice president of worldwide publishing Ian Curran said: "Exchange rates between the euro and the pound are making it very difficult for publishers to show an acceptable operating margin in the UK.

"You can't continue to trade as normal when the biggest territory in Europe has seen cost of goods increase by 30% due to the strengthening of the euro. Publishers somehow need to offset this drastic increase in costs. I'm not surprised to see the [Modern Warfare 2] SRP go up and I feel this will continue across more key titles."

Curran also said that take-up of next generation games is currently "slower than expected and therefore the opportunity to sell more units is limited".

He added: "The increase in cost of goods due to the weak pound has added to this burden, and therefore something has to happen to ensure publishers’ return on their investment."

Meanwhile, ComScore recently revealed that online gaming has grown significantly in the US as consumers increasingly want "cheaper entertainment alternatives".