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mrstickball said:
This is why I think retailers should be pursuing some sort of print-on-demand capability that would remove the returns issue and most likely help out retailer margins, providing a cheaper overall product.

Dgc - You are correct. From my understanding, Nintendo has the highest royalty rate of the Big 3. As far as I know, MS charges slightly less than Sony, while both charge less than Nintendo.

I've never seen anything that stated this. I do know that for downloadable games Nintendo's royalty rate varries based on the size of the game (larger games which take up more of their server space cost more).

Aside from that, royalties, or licensing fees, are always negotiable. Microsoft waves them frequently in order to draw in true and timed exclusives (as well as buying out commercial airtime, as with FFXIII). As with everything in gaming, budget and costs varry wildly depending on the game. It's also certainly not a flat rate of $7, but a percentage rate, and while Nintendo may take a higher percentage of the MSRP it's doubtful that it's more expensive, given the, by default, lower MSRP of their games. Of course, they also often subsidize games just like Microsoft (MH3 for example I garauntee you is not paying royalties).