Lyrikalstylez said:
Dont you guys find it odd that Nintendo retail games never ever go down in price over time?
I mean these people sure love to take there fans for every cent
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Well first off you are wrong, right now several first party games are 29.99$ or lower. Nintendo always cuts software prices they just do so a lot slower then their competitors. As for taking their fans for every cent, well thats one way to look at it. But from a business point of view Nintendo is competing against Microsoft and Sony.
Microsoft and Sony have alternate sources of income other then video game sales. If Nintendo wants to compete with them they need to bring in a sizable profit. Understandably Sony and Microsoft can afford to discount their software fairly quick in order to push hardware numbers and take a larger market share. But Nintendo doesn't have all thise extra money just floating around, they rely on the software sales for their survival.
Plus you cut software prices when demand begins to drop. Nintendo's first party software has traditionally been in very high demand, when demand is so high that supply doesn't out pace it drstically the retail prices remain steady. There is no reason for Nintendo to drop software prices.
You could argue on GameCube they didn't have the demand, thats true but return to my earlier statement. Nintendo needed to bring in high profit margins to compete with Sony. Nintendo needed to ensure that it could be profitable despite a much smaller market share and lower software sales.
In the end Nintendo isn't abusing their fans, they are being smart businessmen and any company in their position would be idiotic to do otherwise. Not to mention Nintendo consumers are more then willing to pay full price for their software, it is high quality software well worth full price. All profits brought in from Nintendo fans is turned straight back into games, Nintendo takes its revenue and invests it back in R&D of hardware and software. The reserves which Nintendo has from the high profit margins will keep Nintendo consumers served even if Nintendo begins to crash.
Essentially Nintendo fans pay for the games because its their money that will lead to more games. In the end even if Nintendo starts taking a dive they will continue to serve their loyal user base until every dime of that money dries up. Its that reason that perfectly justifies Nintendo fans in paying full price for our software.