Dusk said:
sc94597 said:
ps3-sales! said:
Got a Wii for Brawl parties. Brawl was a decent price.
Never got a chance to play games like Xenoblade, Last Story, and Skyward Sword; so I wanted to buy them.
Last story is like $30 but Skyward Sword is like $55 and Xenoblade is $80.
Wtf.
|
@Bolded
@ Skyward Sword
Nintendo artificially maintains high prices for their games. The used market is influenced by the prior equillibrium in the new market.
|
It would only be artificial if it weren't factual. Only a certain amount of games are made, they are generally highly rated and wanted by many, so they are then collectables. How is that artificial? What happen in the market after a game is released has nothing to do with Nintendo, or any other company that makes games. The only difference is that they generally don't flood the market and they keep making quality games. Digital will have its impact on this though.
|
@Bolded What does that even mean?
By artifical I meant Nintendo actively tries to keep the prices of their games up. They don't let the market decide prices naturally, they decide prices themselves, and they can do such because of the price inelasticity of demand on the end of retailers and consumers. This in turn affects the prices of the used market, because the new market is influenced by the price maker that is Nintendo. If the market were perfectly competitive then Nintendo would have no choice but to be a price taker.
http://revisionworld.com/a2-level-level-revision/economics-level-revision/business-economics-distribution-income/concentrated-markets/price-makers-price-takers
"Price Takers
- Firms in perfect competition are price takers
- All businesses have to accept the price that is set by the market
- Firms are not able to set their own price
Price Makers
- As pure monopolies rarely exist having one firm as a price maker is unlikely
- If firms are able to set prices in a market the extent to which they can is influenced by price elasticity for that market, the more inelastic the demand for a product the more a firm can set the price
