| zorg1000 said: I agree with this, software prices are a big problem, $30 should be the maximum. Hardware price is pretty reasonable but could be better, 3DS XL is almost 2.5 years old and is still at its launch price. 2DS, $99.99 3DS XL, $149.99 Retail Software, $19.99-29.99 Digital only software, $14.99 maximum In this scenario sales could very well be better but it might be in Nintendo's best interest right now to keep premium prices in order to maximize profits for the rest of the generation and start fresh with their next-gen hardware. Hopefully Nintendo has learned a thing or two from the mistakes they made with 3DS & Wii U and comes out strong next-gen. |
Keeping hardware and software prices high will not necessarily lead to more profits for Nintendo. Nintendo is currently losing money. If you price a product too high, the number of sales could drop so low that you'd actually make more money selling the product at a lower price.
Hardware pricing is a problem for Nintendo. $170 for a 3DS or $200 for a 3DS XL doesn't make sense when the iPod Touch is $200. But software pricing is an even bigger problem. Because that is where Google Play and Apple App Store really destroy Nintendo. Very few games can pull in good sales at $40 a pop. In order for Nintendo to generate profits, they need to slash development budgets and lower sticker prices for their less popular games. I still think Pokemon might be priced above the sweet spot. But at least Pokemon is profitable.
In the future, once Nintendo of Japan comes to their senses, you're going to see development budgets slashed and much smaller development teams assigned to games. With big budgets reserved for a select few games.
Nintendo is never going to be the market powerhouse it used to be in a smartphone world. But they can still turn a profit servicing Japan and a niche market in North America and Europe.
