sc94597 said:
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. |
I'll take a picture of the Gamespot near me and show you are wrong that statement is.
Gotta figure out how to set these up lol.







