IcaroRibeiro said:
Some of their games sell quite poorly, and yet they never lower the prices. Nintendo wants to maintain the perception that their games never drop in price, for them this is more important than make their games profitable You can see how Wii U games were still $50 even when their hardware business was collapsing But this is beyond the point. The notion that demand is a mechanic law that dictates prices enters in the realm of economic denialism Higher prices can increase perceived value, even for products that are selling poorly and failing to keep the business afloat. Nintendo's market decisions during the Wii U era reflect that. They refused to consistently lower their prices to the same level as other publishers because they believed (correctly) that if people saw their games selling for less, it would signal lower quality. As a result, those customers might never buy their newer games at full price and would instead wait for deep discounts By keeping their prices high, they could also keep the margins high when a finally successful console (Switch) arrived |
Nintendo's Wii U pricing was actually more generous than today because they were doing poorly; Donkey Kong Country Tropical Freeze for instance, pretty sure that was $50 on Wii U rather than full price as it was on Switch or would be now.
