RolStoppable said:
The purpose of any entertainment product is to entertain people. The prices for any medium (books, music, movies, video games etc.) became what they are, because that's what the market has been willing to pay over an extended period of time. These entertainment products aren't judged based on their production costs. People don't say: "There's no way I am going to watch this movie in a cinema, because it only costed $25m to make.", or: "I am not going to buy this book for $20, because I've heard the author only needed one month to write it. I only pay $20, if it took at least six months." - So why should video games be judged any different? Why would anyone say that they aren't going to pay $50 for a video game that costed less than $10m (or $5m) to develop? Your last paragraph is defeating your own position. At the beginning you argued that Nintendo can't do this forever. Now you argue that Nintendo has unmatchable brand power which basically means that they can do it forever. |
@bold. You're projecting onto my PoV. In my opinion, their unmatchable brand power leads to exhuberant markups. Over the long run, as people see value in new propositions like Angry Birds and Trine, they will realize that the brand power and traditional value of Nintendo games doesn't reflect the modern market value.
The price for movies is largely standardized. Whenever I go see a movie at the cinema, it always is roughly 10$ a ticket. For a book it's 15 to 30$, depending on the size of the book.
With a video game, in today's market, the range is so vast that I'm not sure that same "that's what the price is" mindset is meaningful. When the option is between 1$ and 50$, it makes the decision-making process a little more difficult than a movie rental or the buying of a book. (I might be wrong about books now with the whole e-book market, but for movies this is true)
Also, the videogame market is getting very crowded, so asking people to pay 30-50$ for games is not reasonable in such a competitive landscape.







