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Forums - Gaming Discussion - What makes the average Nintendo game hold its value so well compared to other console games

RolStoppable said:
outlawauron said:

You have debunked nothing lol. Bad games published by Nintendo are treated exactly the same in pricing. It's nothing to do with a level of quality, but instead a policy of the publisher. They choose to keep their prices high because they can. Comparing them to Apple in this space is pretty fair imo.

And why can they do it?

Well since Nintendo's bad quality games retain there pricing models just as well as Nintendo's good quality games then quality clearly is not the only factor here, is it?



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RolStoppable said:
A_C_E said:

Well since Nintendo's bad quality games retain there pricing models just as well as Nintendo's good quality games then quality clearly is not the only factor here, is it?

Have you forgotten that I already conceded to you in particular that quality is not the only factor?

For some reason you keep responding to me when outlawauron claims that quality has nothing to do with it at all. He's the one you have to call out if you can treat this topic objectively.

outlawauron said:

Well, the majority of consumers do not accept it. The majority is buying GTA5 at $30 and the latest AAA release that is discounted a few months after release.

The majority of Nintendo's market accepts it because they crave Nintendo products and IP. Nintendo has done a fantastic job of reaching their base and delivering the product they want (as evidenced by the crazy high tie ratio of certain software). Their core customer base doesn't wait for a price drop because they don't think one will come. When a company is as beloved by its fan like Nintendo, they can set a standard for their products and they won't encounter much backlash because they want to play the newest Mario, Zelda, etc. I do think that will change some with Switch because they're getting a lot more than just Nintendo's core audience.

I wouldn't be surprised if their pricing strategy starts to change as they adopt more GOTY editions, GaaS models, and expand their digital marketplace. As they turn to a paid online service, no reason to believe they won't take on more of what the rest of the industry is doing.

Let's make it a simple yes or no question. Does Nintendo's market accept it because the majority of the games are of high quality? Yes or no?

You were using quality as a differeniator from other publishers, not only as a reason for higher prices. The whole reason for my disagreement with you is that 1. In Nintendo's catalog, quality of the game had no impact to its pricing and 2. There's no quality bar that Nintendo is held to that other major publishers aren't. I know we disagree on 2,  but if you believe that they are many more factors outside of quality of game for Nintendo's higher than average prices, then we agree.



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RolStoppable said:
Normchacho said:

It's really not. I actually don't see how that's much of a hurdle at all. People buying Nintendo hardware already know what they're getting. If anything, because Nintendo has stick so faithfully to it's style people are largely willing to buy their systems based on the expectation that they'll keep making games like they have in the past. Besides that, having to also sell the hardware (a goal of all exclusive content) isn't going to have any effect on the pricing structure of the software.

Competition would drive down the price of software, little else.

It is a bigger hurdle. Just look at Sony's first party software sales. The increased competition from other games on the PS4 helps Sony to sell more software as opposed to the Vita where the absence of competition crippled hardware sales on the whole and consequently took down first party software sales with it.

Applying the above to Nintendo, increased competition from other worthwhile games would raise Nintendo's hardware sales and thus Nintendo software would sell more than before. And when it sells more, there's even less of an incentive to drop the price of software. That's why the argument "Nintendo games can sell well at high prices for long periods of time because there's little to no competition" is flawed.

There has to be a strong correlation between value and quality, otherwise it would never work to maintain high prices for an extended period of time. Several people in this thread have argued that the quality of the games has nothing to do with it, but they are all wrong. Without quality there's no value, and without value there will be no sales. People have harped on the outliers, but that's nothing more than cherry-picking when the thread title asks why the average Nintendo game holds its value so well.

But you can't apply the first paragraph to Nintendo, they don't work like that. Nobody is buying a Nintendo system to play lesser ports of old third party games, they're buying them for Nintendo games. A Nintendo gamer is going to pay whatever Nintendo wants to charge for their games because they don't have a choice. Somoene can own an Xbox and get plenty of value out of it without ever touching a Microsoft game, same goes for Playstation. If you own a Nintendo console and you don't buy any Nintendo games you bought what is very nearly an expensive paper weight.

The question being posed in the thread isn't "Does Nintendo make good games?" It's "Why do Nintendo games stay so expensive?"



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RolStoppable said:
Normchacho said:

But you can't apply the first paragraph to Nintendo, they don't work like that. Nobody is buying a Nintendo system to play lesser ports of old third party games, they're buying them for Nintendo games. A Nintendo gamer is going to pay whatever Nintendo wants to charge for their games because they don't have a choice. Somoene can own an Xbox and get plenty of value out of it without ever touching a Microsoft game, same goes for Playstation. If you own a Nintendo console and you don't buy any Nintendo games you bought what is very nearly an expensive paper weight.

The question being posed in the thread isn't "Does Nintendo make good games?" It's "Why do Nintendo games stay so expensive?"

Of course you can apply that paragraph to Nintendo. You misunderstand it because you think exclusively of AAA third party games. But look at the 3DS with IPs like Monster Hunter, Dragon Quest and Yokai Watch that sold in the millions. Did that hurt Nintendo? Nope.

The way you argue, it sounds like people accidently buy Nintendo consoles and then are stuck with buying whatever Nintendo puts out. But in reality we are talking about a game maker whose games are so desirable that people buy specific hardware only to get to those games. That's only possible because Nintendo's games are so good. And because people buy Nintendo consoles for Nintendo games, the logical answer to why Nintendo games retain their value so well is also because the games are so good.

Or put another way, can you think of any software publisher other than Nintendo who could maintain a sustained presence as a console manufacturer because of their own games? I can't. Nintendo games can stay expensive and sell well for so long because they are more valuable than anybody else's games to begin with.

I am aware that what I am saying sounds incredibly arrogant to people who don't like Nintendo, but that problem isn't on me. It's on the people who refuse to accept the reality of the console market. Similarly, I was deemed to be arrogant when I predicted that Switch would succeed and said that the naysayers have it all wrong.

But...  Wii U games are not selling anymore..

I mean, in the last week the Wii U sold only 86,000 units. That is 10 times less than the X1, and 27 times less than the PS4.  

Why isnt Nintendo lowering the price for those?




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nintendo games are not average they are all time masterpieces thats why their expensive
they have replay value thats it



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Nintendo don't lower the price to retailers unless the SKU changes (select), so the only way retailers drop the price is if they're willing to take a hit to shift stagnant stock, and because the retailer has little room to move on retail price, the used masket retains a high price too since sellers can get away with it (still full retail new).

That is the only reason why.

Nintendo not budging on the retail price has nothing to do with the quality of the title being sold either, the same goes for their digitally delivered games, that they themselves have full control over the pricing of.

To quote:

“We believe download versions have the same value and should be priced the same,” Iwata said.

“Some companies price downloads cheaper due to the there being no used sales or store price reductions. We stress the value of Nintendo software, so we price the same.”

Nintendo believe that they do not need to lower the price of their games, even when they arent footing the bill of manufacture and distribution of a physical copy, where they are receiving the full retail cost for the title (and not the slightly discounted value they receive in selling a game through a retailer), so in effect Nintendo makes more money out of its fans for digital than it does for physical, so the chance that Nintendo would be willing to take a higher loss on physical retail games is near zero, thus contributing to the artifical retail price hold and the high price on used market.

Last edited by NATO - on 04 November 2017

Used games are also expensive.

 



RolStoppable said:
chakkra said:

But...  Wii U games are not selling anymore..

I mean, in the last week the Wii U sold only 86,000 units. That is 10 times less than the X1, and 27 times less than the PS4.  

Why isnt Nintendo lowering the price for those?

Because it's pointless at this stage. There's no widely active userbase for Wii U software anymore, so there's no volume to be gained by lowering the price.

Sorry but that just goes against everything you have said in this thread.  

I mean, you said "Nintendo games can stay expensive and sell well for so long because they are more valuable than anybody else's games to begin with."

so...  how come WiiU owners got tired so quickly? It is not like they've already moved on to the Switch.  I mean, even if we assume that every single WiiU owner is gonna buy a Switch eventually, that only means that 7m people haven't done it yet. How come these people are not seeing the value of such high quality games?

I mean, we have games like ZWW, DKTF, Yoshi, Captain Toad, Hyrule, Pikmin, Bayonetta and Xenoblade, etc., (which are all universally acclaimed) and yet none of them have even reached the 2m mark yet. That can only means that 11 million people didn't see the value in them to go out of their ways to buy them.

Oh! and just as a side note: According to VGC WiiU owners bought an average of 6.49 games.  That is way below the average of 11 games that PS360 owners bought.



I think its a mix of quality and Nintendo keeps their prices high at retailers.



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