Nope, Nintendo and the 3DS are doing just fine, carry on.
Nope, Nintendo and the 3DS are doing just fine, carry on.
loves2splooge said:
Keeping hardware and software prices high will not necessarily lead to more profits for Nintendo. Nintendo is currently losing money. If you price a product too high, the number of sales could drop so low that you'd actually make more money selling the product at a lower price. Hardware pricing is a problem for Nintendo. $170 for a 3DS or $200 for a 3DS XL doesn't make sense when the iPod Touch is $200. But software pricing is an even bigger problem. Because that is where Google Play and Apple App Store really destroy Nintendo. Very few games can pull in good sales at $40 a pop. In order for Nintendo to generate profits, they need to slash development budgets and lower sticker prices for their less popular games. I still think Pokemon might be priced above the sweet spot. But at least Pokemon is profitable. |
Nintendo is not currently losing money, the most recent quarter was a profit and they are expected to make a decent profit this quarter as well. And ur right a cheaper product does have potential for higher sales but it's just that, potential. Let's say Nintendo makes back $20 on a $40 game or $10 on a $20 game, the $20 game would have to sell over double the amount in order to make more money than the $40 game, which there is no guarantee it will do so. If it only sells 1.5x as much, then they actually lost money by pricing the game too low.
But for the most part, I do agree with u. Like I said hardware pricing is not awful but could certainly be better, $99 for 2DS & $149 for 3DS XL would be ideal by now and games should be priced according to their budget. For example, a low-budget 2D platformer like Yoshi's New Island should not be $40, $30 should be the absolute most. Save the premium $40 price for the multimillion selling franchises.
When the herd loses its way, the shepard must kill the bull that leads them astray.
3DS is alive
Zelda - Breath of the Wild for Nintendo Switch.... Incredable!!!
http://customstoday.com.pk/super-mario-creator-nintendo-earns-14-3-billion-yen/
http://www.nintendo.co.jp/ir/en/finance/2014_02.html
Nintendo's 2nd quarter report (July 1-Sept 30, 2014) is the best 2nd quarter they have had in the last 5 years with a 14.3 billion Yen profit ($132 million USD). And more importantly, their capital adequacy ratio is the highest it's been in 5 years during that quarter.
Industry reports point out that Nintendo is benefiting from a weaker Yen these days. Weaker home currency = better exports. Basically Nintendo is making a lot more Yen these days from the foreign markets while the wages of their Japanese employees remain stagnant or go up only a little bit. That's why they are making money now.
Nintendo should ride the wave of the weak Yen and exploit the advantage in foreign markets. Price cuts on hardware and (especially) software in North America and Europe might give them the revenue boost they need. I saw Final Fantasy Theathrym Curtain Call sell out in no time for $25 Canadian (Boxing Day sale) at Best Buy. It was just sitting on the shelves at $45 Canadian. That's just one example I like to use to point towards games other than Pokemon and such being over-priced.