Another week of total NS domination. Sony and MS must be scratching their heads trying to figure how Ninty manages to be hit by component shortages so much less than them.
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| Alby_da_Wolf said: Another week of total NS domination. Sony and MS must be scratching their heads trying to figure how Ninty manages to be hit by component shortages so much less than them. |
I mean, it's hardly a mystery, Switch is using an older fabrication process and components while PS5 and Xbox Series use newer and bigger chips built on a relatively new fab process.
Last edited by curl-6 - on 27 December 2021
Kakadu18 said:
If they reduce the game's prices people will start to expect it to eventually happen with later releases. Franchises like Pikmin and Xenoblade do not have nearly as wide an appeal as God of War or whatever. Even if they give the games away for free they won't 20mil "sales". A higher profit margin is one thing but what is more important to Nintendo is the IP's worth. Both XC2 and P3DX are the best selling games of their franchises, they have growth despite the high prices. They don't seem to have the need to drastically lower their prices. Actually XC2 has incredible legs for a JRPG despite it's price. |
What's the point of keeping the value of a game if they can barely crack 1-2 millions on an install base of 100 million consoles ? Not saying Xenoblade and pikmin would ever reach 10-20 millions units sold but they certainly are pushing these two IPs and all i'm saying is a Nintendo select line would help. I got into pikmin cause it was free with MK8 on the Wii u, i wouldn't have if it was 80 bucks for it's entire run on Wii U/Switch. They always have that Nintendo select line, but they are getting too comfortable on Switch and could reach an even bigger audience.
Wyrdness said:
Perhaps I should word it better but lets put things in perspective at 10m sold it made 500m in by the end of 2019 at that point it was still around 60 quid it's full price which actually highlights my point on money made on the full price now guess how much revenue is going to be made from 10 quid which is 20% the price, the profit from the game was good but could be so much better this is what he meant in that they're sold at a loss as at 10 quid they lose 80% return per sale compared to what they were getting, it was 19 quid after October 2019. So we know the additional 10m came at the lower bargain bin price point and sold for less than 50% of the original price, for example it would mean they would have made 150m more from 19 quid in comparison to another 500m that could have been made. GOW3 itself cost 44m while GOWA had costs running between 40-60m, GOW 2018 has no direct quote but people estimate at 100m plus and this is before you factor in, marketing, logistics, middle ware licenses, payment of actors etc... Yeah the game made profit with the loss in sales but it's one of their best selling games ever what happens when you get to titles like Days Gone, Death Stranding which don't hit that mark but have similar costs which is the point in business approaches. Now for arguments sake lets look at a game like SMO and say it has the same development costs for the sake of the comparison, at 21m it still would have made substantially more money than GOW as it hit the mark with out dropping to 19 then 10 quid despite the difference in sales being only like 1m. |
Not everything is about profit for the actual game once it has performed already. Reducing the price allowing more people to take the game and be excited builds more anticipation for the sequel. They would be smart to put the first 2 xenoblade games on sale to make the IP bigger and more people to buy it full price once they are actually hooked by the game instead of just ending not playing the games. You want to get into an IP but the 3 games are full priced on Switch, it's hard to get into it and people just decide to move passed it instead. Lowered priced games also allows you to sell more units. There is a big crowd that likes to wait a few years to buy a console and play games many years later for cheap. That is not a possible avenue for the Switch right now which is in it's fifth year.
trunkswd said:
I do wish Nintendo would drop the price of their games. I only spend $60 on the big AAA releases, otherwise I wait for a game to drop in price or play it on Game Pass. Is BotW and Mario Odyssey worth $60? Easily. Is say Luigi's Mansion 3 or New Super Mario Bros. worth $60? To some people sure, but to me they aren't worth more than $30. Though, I guess if money wasn't so tight I would be more willing to spend $60 on games. |
I mean same. I am tempted by many games but being a student with other hobbies i don't want to spend 500$ in gaming a year and i pick my ultimate favorite games and many others i'm just waiting for a price drop... which rarely comes or it's not lower than 30% for a few days. Like this is not just cause they can, it's a bit scammy and it clearly is building some criticism online. I hope we see a change to that next year.
curl-6 said:
I mean, it's hardly a mystery, Switch is using an older fabrication process and components while PS5 and Xbox Series use newer and bigger chips built on a relatively new fab process. |
Yea, I suppose that there are many factors that contribute, for example, using a SoC derived from mobile ones, NS probably needs a lot less other chips on its mobo. New fab process should in the mid and long term favour PS and XS, but this benefit probably isn't enough to make up for the far higher transistor count.
Smaller RAM should also help NS, RAM has always been a type of component affected by recurrent shortages.
trunkswd said:
I do wish Nintendo would drop the price of their games. I only spend $60 on the big AAA releases, otherwise I wait for a game to drop in price or play it on Game Pass. Is BotW and Mario Odyssey worth $60? Easily. Is say Luigi's Mansion 3 or New Super Mario Bros. worth $60? To some people sure, but to me they aren't worth more than $30. Though, I guess if money wasn't so tight I would be more willing to spend $60 on games. |
I could see them doing a Nintendo Selects lineup at some point, but as of now I think they are happy with just having a handful of titles discounted a few times throughout the year.
Perhaps in the twilight years they will drop the price of the Lite to $149.99 alongside a Selects lineup at $29.99 to get late adopters/budget gamers.
When the herd loses its way, the shepard must kill the bull that leads them astray.
One year ago I thought that it would be a close batte between all 3 competitors during the holiday season 2021. I think Nintendo can be pretty happy with the current situation, despite sales are down about 10 % YoY.
Besides black friday Xbox Series isn't able to be above PS5 worldwide. Sony is currently selling more consoles than on black friday and Microsoft is selling less. Interesting stock management.
| xMetroid said: Not everything is about profit for the actual game once it has performed already. Reducing the price allowing more people to take the game and be excited builds more anticipation for the sequel. They would be smart to put the first 2 xenoblade games on sale to make the IP bigger and more people to buy it full price once they are actually hooked by the game instead of just ending not playing the games. You want to get into an IP but the 3 games are full priced on Switch, it's hard to get into it and people just decide to move passed it instead. Lowered priced games also allows you to sell more units. There is a big crowd that likes to wait a few years to buy a console and play games many years later for cheap. That is not a possible avenue for the Switch right now which is in it's fifth year. |
The flaw here is that this is a self fulfilling prophecy in economics as many of that crowd who don't buy at full price never intend to do the same with the sequel either you don't really make money off such consumers and in an industry of ever increasing costs you run into a dead end with them as the influx of such consumers doesn't keep up with the costs this is why we've had such stories in the past with games like Tomb Raider selling 7m but not bringing in enough profits to satisfy the books as companies operate in the long term sales mean little if you're not making enough off them for things to go forward and that's the problem we saw with Days Gone you end up having more sales but making less per installment as people only buy at bargain bin prices. Like it or not companies have to operate on profit sales and if someone is the type of consumer that they won't make money off then they won't be to concerned about that person after all games have free demos and even free trial periods now days for people to try.
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