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Nintendo - Club Nintendo - View Post

RolStoppable said:
KLXVER said:

From what I heard a 64GB cart costs 16 dollars for publishers. Maybe cheaper when you buy them in the millions, but its expensive. Add the fact that Nintendo takes 30% and it adds up. I just think they should have more options.

The $16 must include the royalty fee that is paid to Nintendo already, because otherwise there would hardly be anything left for the publisher. Nintendo's cut is 30% for digital games, but for physical games it's lower at around 20%. That is because for digital games, Nintendo is both platform holder and retailer whereas for physical they are not.

For a $60 game, this is what a third party publisher would have to give up to Nintendo and retailers:

1. Physical: $16 to Nintendo (if rumor is true) + ~$10 retailer cut = ~$26
2. Digital: 30% to Nintendo = $18

Digital is more profitable for publishers, hence the push towards digital games.

If for physical it were $16 for the card, 30% to Nintendo ($18) and ~$10 retailer cut, you'd end up with $44, leaving only $16 for a publisher. At that point we likely would have no physical games anymore.

Well thats why the games now cost 70$ and probably 80$ soon if Mario Kart World does well.