Dusk said:
It means what I said. As I said before, they only create/print a certain allotment of games based on their projected demand for the game. They generally don't make more games than that. That is why there always ends up with demand for the games as opposed to the market being saturated. I'm not sure if you noticed, but the price of Xenoblade dropped dramatically when the 3DS version released. It's because the demand for the game lowered, however there are still those that want the original version for the Wii which is why it's still a relatively high price. If there wasn't demand for the game it would be much lower. That is why this often happen with games that are more rare. What you posted refers to is initial price points, not the used market. The used, or rare market more reflects that to the likes of cars. A Delorian goes for more than when they were brand new, and the price keep rising because less are on the roads. Same goes for certain records and tapes (more so vinyl records though). However there has to be demand for it. Nintendo games, ie Zelda, Smash, Mario, Metroid, Xenoblade or any others all release at the same price point as other games on their system, or new games on other systems. If it were artificially inflated then any of the aformentioned games would release at higher MSRP, but they aren't. |
Instead of clarifying your statement you just let it be. Okeydokey. If what were "factual"?
I already explained Xenoblade and The Last Story through shortages ( that is what the graph shows.) Nintendo does more than just shortages though. They take advantage of retailer inelasticity of demand to make deals that keep the prices of said games high for longer than other games.
Nintendo games get much more shelf space and retailers keep them on their shelves longer than third party games. This is partly because of inelasticity of demand, but also because of the deals Nintendo makes and the perceived values of Nintendo games. Other games that NOA have been involved with also benefit, like Monster Hunter and Dragon Quest. Notice that when these games released for other systems their prices decreased much faster. This was because there were no bulk retail deals and third parties wanted to replace retail space with something else. You could still find games like metroid other m at these high prices not because there is high demand but because of Nintendo's predictions and retailer deals. Meanwhile stores that didnt have these deals put the game in the bargain bin because of low demand and they weren't restricted by Nintendo with regards to bulk purchases.
The used market is affected by the equilibrium price of the new market. Not entirely, but partly. If a game retails at $50 for two years then the equilibrium price in the used market is going to be higher than a game that only retailed at $50 then got a price drop after a year.
