The first point is that Nintendo games, unlike those of the competition, are not published on platforms that do not belong to Nintendo itself. What does this mean? It means that all the income generated by the production company, which in this case is also Nintendo, and cannot count on the income that, as happens with the competition, the games generate when they leave at a reduced price on other platforms, such as Steam, as well. as these games will take many years to be ported to future consoles.
For Nintendo, the sales of the software that the same company develops are much more important than for Sony and Microsoft. The latter two mainly sell video games from third-party companies, that is, they have been developed by other companies. This is mostly the catalog of their consoles, so that a large part of their income depends on the number of copies sold of these third party games, since they keep a part of the profits generated thanks to the license rights.
Once this is established, it is understood that they are interested in reducing the price of the games as soon as possible to increase sales, even though maintaining prices those third-party companies would earn more money. However, Nintendo acts both as a developer and producer of the video games that come out for their consoles, the prices put them under that premise.
It is not a particularly cohesive company, not for nothing has a handful of development teams, so it is unlikely that they will reduce the price of video games, in the form of Nintendo Selects, until they have generated enough revenue for the team development team that has developed them.
Not only is that really, because especially the fact that Nintendo games never go down in price is due to a fairly conservative philosophy on the part of the company. This data is known by everyone, Nintendo has always had a very old-fashioned mentality and sometimes misguided with its policies; Let's remember that until the policies changed on November 29, 2018, they eliminated like crazy their content that youtubers and streamers were uploading, as well as they demanded a quota to be able to upload that content, without understanding that they were actually benefiting, because by end of the day they were getting free publicity.
Based on this ignorance by Nintendo of how the gaming community has evolved, let's talk about what most companies do. Virtually all of them know that the majority of video game sales occur within the first month of their release. So, as a business strategy, once sales start to drop, they lower the price to try to sell as many copies as possible. Obviously, this strategy also has its problems, as many people prefer to wait for those prices to drop.
So, Nintendo being known as one more company for everyone, when it brings out those casual games that everyone is going to play for the simple fact that everyone plays them, they are doing incredible, and really, having a Such a solid fanbase, those less casual games are usually a hit too, but after the first month they lose hundreds of thousands of sales from people buying the games at discounts, which they don't seem to realize yet.
In keeping with the company's philosophy, price retention, as stated by the late president and CEO Satoru Iwata, has long been something that Nintendo has deliberately pursued. Iwata, more than a decade ago, was dedicated to observing the trends of the new generations of players, at a time when mobile games were beginning to gain a foothold in the industry. He was very concerned that these games would cause longtime developer companies to stop striving to create the best video games possible and instead focus on simply competing with this new market, as well as trying to scale up their projects. Iwata didn't want Nintendo to adopt those unhealthy practices that other companies did and that led to worker burnout and exploitation or, worse still, half-done projects hitting the market with the ultimate goal of crushing the competition.
The late president personally accepted a pay cut when the board of directors brought up the idea of firing programmers to cut costs, and warned the rest of the industry of the dangers of not presenting a "perception of value" to consumers. that the software they sell costs what it makes as long as the staff can earn enough money to lead a good life.
You see how Nintendo is and its way of seeing things. They don't even lower the price of their consoles; the Switch continues to cost the 300 dollars that it cost in its day, because according to that conservative mentality that they have, it will generate losses in the long term. Few copies of a video game are much more likely to be released upon release than to let thousands of copies sit in warehouses or take up space on retailers' shelves, as counterintuitive as it sounds.
Of course, the fact that NIntendo's philosophy is like this is an important problem, and it is that after all, doing what they do they annoy themselves and they also annoy us consumers. And they are not even for the work of trying to compensate for such prices. I can understand that given the lack of support from third party companies, it is more complicated to reduce the price of the software you sell, not so much when your philosophy also has a lot to do with it, but the fact is that they don't give us anything in return. Like all companies, Nintendo games are full of DLC; Zelda Breath of the wild is a case that comes to mind. What I do not think is good is that today it still costs the same as almost 4 years ago and they have not deigned to release a complete edition with all the DLC that justifies the price.
We have already established that for different reasons Nintendo is unable to drop the price of its games, but for this there is simply no excuse, it is pure greed. And since we are talking about Breath of the wild, I do not believe that with almost 19 million copies that it has sold they have not already reached enough income to pay the team that developed it, similar case with Mario Kart 8 Deluxe or Super Smash Bros Ultimate. But again, we return to the subject of the philosophy of this company, which is to try to maintain prices for as long as possible.
Many think that it is fair that Nintendo games do not drop in price because after all they are very careful; Nintendo prioritizes the good treatment of its workers and its products much more than other companies, so that they are not going to give you half-finished games or that need an early update patch; They are very perfectionists with their work and it is rare that they do not polish a game as much as possible before it is released. But, let's see, that doesn't justify anything; God of War is a great game at the height of the best that Nintendo has given birth and in nothing and less you could already get it at half price, and so with all its games, so that argument is not worth me, and less with games that have been on the market for years and years.
And don't dare to say I hate Nintendo or something like that, because precisely as a developer Nintendo seems to me the best among the 3 big ones, while as a company it seems to me the worst, followed closely by Sony. But hey, they are still millionaire companies, and all 3 leave a lot to be desired in terms of customer treatment, although at different levels. When a company has a faithful or directly conformist community, it will always try to abuse them, and to a greater or lesser extent, that is seen both in Microsoft, Sony and Nintendo, but the latter is the one that at least in terms of price videogames get the worst of it because of the way they see business.
Source: Original link
© Post "My problem with Nintendo prices" for game Gaming News.
Top 10 Most Anticipated Video Games of 2020
2020 will have something to satisfy classic and modern gamers alike. To be eligible for the list, the game must be confirmed for 2020, or there should be good reason to expect its release in that year. Therefore, upcoming games with a mere announcement and no discernible release date will not be included.
Top 15 NEW Games of 2020 [FIRST HALF]
2020 has a ton to look forward to...in the video gaming world. Here are fifteen games we're looking forward to in the first half of 2020.