Nintendo Explains Why Digital Games Aren't Any Cheaper

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And BS like this is exactly why I'm now PC exclusive and only buy games through Steam and in humble bundles. If people, especially parents, knew about the insane disparity in pricing of games on Steam versus other distributors, then I have no doubt the Steam Box would crush the other consoles when it's released. Even if it costs a couple hundred dollars more than the other consoles, the cost savings on games would make up for that in no time.

Strazdas:

Yes, keeping server farm costs money. significantly less money than it costs to make physical copies, ship them, give local dealers heir cut and all sorts of other things. Lets not forget some countries dont even tax digital copy sales.

And yes, we do know how much it costs. because we know how much server farms cost for other high demanding internet services that basically do same thing. and they are far less than physical sales costs.

Well, I'd like to numbers then with a source, cause I'm curious about that stuff.

But yea, I don't like how nintendo handles its DD...

...so it's because they think we're so used to the prices we're paying (well, not strictly 'we' but anyway), that to see the games sell for anything less we would assume the game isn't as good.

What a load of shit. Most people even marginally knowledgable of the games industry would think a price drop for a digital game is more than reasonable.

Seeing as Nintendo still isn't using an accounts system for digital purchases, I can't understand who would want to buy them anyway.

This is strange.
I actually use the Nintendo E-shop, exaclty because some games are cheaper...
I have 2 stores close to me that sell games, one being a big warehouse kind of place were they sell everything and the other a GameStop.
For example when Deus Ex got released, in the stores it was priced 49.90€ while I got it for 39.90€ from the e-shop
Splinter Cell (Backlist?) which I've been thinking of getting is priced the same while then again Pikmin3 was 10€ cheaper in the stores, at launch.
So before I buy a game these days I check the online store, then the 2 stores and then I buy where it's cheapest.
Nintendo are having a sale of 60% on I think 7 or 8 titles at the moment, I only got Trine2 but if I would be out of playable games I could've bought at least 2 or 3 of those titles for the price they offered.
I hope these sales will become more frequent and also include major titles at some point, otherwise it'll just be the same as waiting for the "after xmas sales" or summersales that all stores have.

Oh, cut the crap, Nintendo, you just want to make as much money as possible.

When everyone else is doing it, fair enough, but at least just be straight up about it.

So translation; we are charging retail price because we know you're going to buy it anyway, so we might as well as get the most cash out of you as possible. That and we'll be pushed even further to the back of gamestop if we make it cheaper.

So colour me shocked that the company that people praise as 'being different' act just like the other guys... except for putting out a competitive console this gen. I went for the low hanging fruit, so sue me.

Thank god i have a really bad cold right now other wise all i would be able to smell is BULLSHIT!

Sheo_Dagana:

chikusho:
A practice that's well researched, tested and proven to work if pulled off correctly?

Yeah! 'cause charging retail price for digital content is working out great for EA Origin.

So... You're using an unsuccessful execution of a pricing strategy in order to, what.. disprove the successful ones?

MrHide-Patten:
So translation; we are charging retail price because we know you're going to buy it anyway, so we might as well as get the most cash out of you as possible. That and we'll be pushed even further to the back of gamestop if we make it cheaper.

More like: We are charging retail price because if the games were cheaper they would be perceived as less valuable, which would hurt the product and/or our brand.

Well, he's technically correct, he does not want to shift the sandpit the VG industry has built their neighbourhood on. To put it simply it would benefit no one in the industry to pull such a move.

Sofus:

Digital versions cost the same as retail versions because..... well, we like money

I would accept answers such as

It helps us maintain resonably low retail prices and we need the retail market to continue existing and hopefully grow, because there are people who either won't or can't make use of the internet.

Their market expansion would take place in areas and people are more likely that have access to useable internet connection than being able to pay ~40% more for a boxed copy for a single game that already has an entry hardware costs many times more.

Digital is NOT online-only, just online until you download it.

Yeah, this is exactly what EA said.

And it wasn't any more correct when they said it.

Pricing a digital product less than a physical product does not "cheapen" it. This is a bullshit excuse being made to keep from cutting into their bottom line.

Isalan:
So digital games are the same price as physical copies cause publishers want more money.

Yet another blinding insight from Nintendo.

Didn't this industry used to be about producing fun entertaining software for the delight and wonder of the general public?

Nope. Never was.

70s - cheapo bad games sold at outrageous prices, done by companies that didn't care or know about video games.

80s - crash from opportunistic vultures, restart with Nintendo.

90s - Big business buying out small innovative developers, reskinning old games and selling them as "new" in just a few short months. Non gaming companies started seeping in again to cash in, but promptly abandon the venture and disband the companies they bought. Causing huge havoc and damage. A decade of culling of indies.

2000- Big business complains about piracy, moving focus to consoles.

2005+ - COD COD COD COD COD, complaining about used games.

2010s - Now, with everything being a clusterfuck. Big business got too big and wanted it all. Threat of industry crash rearing its ugly head.

Why do people get outraged the games cost money?

Wow. I don't get why EA can't get along with Nintendo when they seem to share the same fucking logic when it comes to pricing, digital content, etc. Only difference is Nintendo's games are generally good whereas EA is generally shit.

All kidding aside (not really), this logic is kind of bullshit. Digital copies can only be bought and played and that's it. With no resale value or anything, the price should already be cheaper. Let's also not forget that there's no added costs for shipping, packaging, or manufacturing. And I'm sure there's some kind of cost in sharing profits with distributors like GameStop. So, yeah, there's no justification why the price should be EXACTLY the same. If Nintendo wants to charge higher than the usual digital amount we would have expected, fine. Full price? No. That's an EA move that no one really appreciated (or still appreciates, idk if Origin still pulls that bullshit) and I'm not buying their lame excuse.

Furthermore, if Mario, Zelda and all of it has such high value, then why are you charging so little for the old games on NES and SNES on the virtual console? Those are games many Nintendo fans love to the point of preferring some of those over the newer games being released. Clearly their more valued and should be charged to reflect that, right? But they aren't They cost roughly what you'd expect them too (maybe a tinge more). So, yeah, not buying it.

EDIT: And Nintendo wonders why they aren't making WiiU sales. If their games were cheaper digitally, it would probably convince people to go in that direction and buy through them. At least it would also balance out the cost of the system everyone seems so happy to bitch about despite it being the cheapest console of the lot.

You know game devs, it's not bad to say, "we want profit". I understand that and accept that, I'm sure others do to. So please just be brave and say, "You already showed you're willing to pay 60 - 100 dollars + petrol/bus money/exercise to get the game, so pricing isn't all that bad".

Oh there's so many things wrong with this "logic". I mean there's probably nothing that people haven't already said here (reduced company costs for manufacture, digital games often being MORE expensive than retail, can't share digital copies in the same way etc) but it's still flabbergasting to see Nintendo try and pull such thin wool over everyone's eyes, I would have thought they'd at least make a small effort to find a plausible explanation.

As far as I'm concerned there's nothing here that doesn't come across as "we want bigger profit margins for less work" although I may be biased as I much prefer having hard copies of games to having downloads.

Steven Bogos:

"[Digital games aren't cheaper] because we want consumers to value software as highly as possible and because we have been trying to heighten the value of our software whenever we produce it,"

Translation: we're trying to find out how far we can go.
I get you need to make money Nintendo, just stop dancing around it. "No, we're not trying to make money, we're keeping up the value of our product"

I've heard a lot of cheap excuses, but this one takes the cake.

Nintendo LOVES to devalue its own franchises (Legend of Zelda cornflakes, anyone?), but only when it nets more profit. They really don't give a crap as long as it pays off. Playing the artist who worries about his work now is really low.

bdcjacko:
Why do people get outraged the games cost money?

Because you pay the same and get less, that's why.

Short version: Because you'll pay it.

Honestly, what were you people expecting? That's how any free/capitalist market works: products will sell for whatever the consumer is willing to pay, regardless of actual value or overhead cost.

Before I clicked I was thinking "Oh! I bet it's bullshit! Is it? Am I right?" Nintendo did not disappoint.

Don't piss on my head and tell me it's rain, Nintendo. You want more money, just say it.

thats some beautifully crafted bullshit right there. if Nintendo goes to the wall atleast this fucker can become a politician.

Bullshit.

They'd make more money off of digital sales due to not having to give retailers, shippers and packaging companies a slice of the pie.

How the hell do they think Steam works so well? Nintendo could easily make their digital games cheaper. A better answer would have been, "we wouldn't want to see anyone involved in making the physical version of the game lose their jobs."

Dragonbums:

Desert Punk:
"Well the content is the same, it doesnt matter that we dont have to pay production, shipping, or franchise costs, we are still going to charge you the same...because its worth it...The fact that we make a LOT more money that way is aside the point honest! Also, thats just rain running down your back...just rain..."

I knew nintendo was run by idiots, but did they honestly expect anyone to not see through their bullshit? Fanboys excluded of course.

It's not like the rest of the gaming industry literally has the same stance when it comes to digital copies being the same price as physical.

This isn't Nintendo being idiots. It's them literally following the crowd.

And it's just as bullshit in those cases. There is no good reason that they can't reduce the price just a little. Five dollars less for a digital copy would be nice. Then, I have to decide if getting the physical copy, case, and manual is worth the extra money. If I would rather make the drive or allow it to download. In that case, there would be a minor debate to be had.

I'm pretty sure Sony does the same thing, and I rarely buy games off PSN, unless they are only available on PSN. If Nintendo, Sony, Microsoft, EA, or anyone else wants people to use digital distribution, they should offer incentives to make it worth doing.

So, yes, it is Nintendo being idiots. Because everyone is being idiots in this case. Just because the crowd is doing something, doesn't make it smart.

Is Activision mind controlling Iwata? I love Nintendo, but when I went to Gamestop to buy Pikmin 3, they were out, so they offered me a download code...for the same exact price. I said no an bought it from Amazon. If Im paying full, Im getting full.

Totally forgot, Nintendo doesn't seem to be the only one with this attitude.

I'm really no friend of digital distribution, but I check the prices regardless every now and then. On XBL, you pay easily two to three times the retail price for your downloads. Bioshock Infinite for example costs less than 20€ on Amazon while MS charges you 40€ for the download. Red Faction. Armageddon costs 10€ on Amazon while MS wants whooping 60€. I could go on like that all day, but you get the idea. Steam isn't any better, saw games costing five times the retail price already.

As long as people can choose between physical and digital copies, you can always go for the cheaper variant. Once it's all digital, we're victims of the publishers mood. Not like there would be competing retailers or used copies anymore...

Well the thing I see is that yes digital games are less valuable than retail games, why because with digital you don't own an official physical disc, the box, manual and anything else that may come in the box. So why should a digital copy of a game be worth the same as a physical one?

STENDEC1:
Ahh... So THAT'S why PC games are ludicrously expensive on Steam, just like in retail shops. Oh wait... No. No they're not. Most of them aren't even CLOSE to expensive on Steam. Huh. Guess all those discounted games and IPs are completely worthless by now, hey Nintendo?

You say that, I actually frequently find that retail copies are significantly cheaper than steam (e.g. I picked up Skyrim at Tesco for 19.99 whereas Steam was selling it for 39.99 at the time) and quicker too since it only takes me an hour to go to the shop, buy the game, come home and install it whereas steam can take 5 hours for a large download. Hence, I prefer retail in most instances, as I don't actually see any overriding value to me in using Steam, plus if I physically own the disc no greedy publisher or belly-upping company can rob me of it.

Another reason why Nintendo won't drop their digital prices: They don't want to upset retailers with more competitive sales pricing than what retailers can provide. Dunno about most places, but I'm fairly certain Gamestop only makes about a $2 profit off of every new game that's sold. If the publisher is offering the same game at a cheaper price that makes it not possible for the retailer to compete then what incentive does the retailer have for ordering more product from the publisher when the publisher is actively undermining the retailer's own business? Digital distribution isn't getting any cheaper because there still isn't a viable amount of people with internet connectivity and still very much a heavy reliance on physical copies to play games.

Steam and GoG get a pass from this as they don't have much of a stake in cutting into retailers' profits. Not sure if you've been to a PC Section in your local Gamestop or WalMart, but aside from WoW, Diablo 3 and some other random hot games of the month, there isn't much physically offered by way of PC gaming. This allows Steam and GoG to make deals and have competitive pricing as a majority of people who game tend to favor consoles instead of PCs and can't be bothered to do what is necessary to set up a physical disc computer game most times.

I dunno, that's my supposition anyways.

Dragonbums:

Desert Punk:
"Well the content is the same, it doesnt matter that we dont have to pay production, shipping, or franchise costs, we are still going to charge you the same...because its worth it...The fact that we make a LOT more money that way is aside the point honest! Also, thats just rain running down your back...just rain..."

I knew nintendo was run by idiots, but did they honestly expect anyone to not see through their bullshit? Fanboys excluded of course.

It's not like the rest of the gaming industry literally has the same stance when it comes to digital copies being the same price as physical.

This isn't Nintendo being idiots. It's them literally following the crowd.

They follow the crowd of idiots, which makes them idiots as well. Or even bigger idiots. "Everyone else does it!" is not an excuse.

Oh well. I was thinking about buying a 2DS... but now I might settle for a hacked PSP or an Android tablet.

circularlogic88:
Steam and GoG get a pass from this as they don't have much of a stake in cutting into retailers' profits. Not sure if you've been to a PC Section in your local Gamestop or WalMart, but aside from WoW, Diablo 3 and some other random hot games of the month, there isn't much physically offered by way of PC gaming. This allows Steam and GoG to make deals and have competitive pricing as a majority of people who game tend to favor consoles instead of PCs and can't be bothered to do what is necessary to set up a physical disc computer game most times.

No idea where you buy your games, but the shops in my region have pretty big PC sections. And they aren't just selling the latest stuff either, but lots of classics, budget games and bargain bin stuff as well. Most retail PC games now are just Steam keys that come with a box and a disc for convinient install anyway.

Steven Bogos, I think your TF 2 icon best sums up my thoughts on this.

As much as some might consider this blasphemy I think it would be great if Nintendo came to PC imagine Wind Waker on PC.

EA's reasoning for having less sales than Steam - and less good ones, at that - was because they didn't want to be seen to be running an "Ikea store", or something like that. I doubt it's the real reason, but then it's so pathetically transparent that I wonder if it is a genuine insight into how these peoples' minds work.

Bloody idiots.

Chaosritter:

circularlogic88:
Steam and GoG get a pass from this as they don't have much of a stake in cutting into retailers' profits. Not sure if you've been to a PC Section in your local Gamestop or WalMart, but aside from WoW, Diablo 3 and some other random hot games of the month, there isn't much physically offered by way of PC gaming. This allows Steam and GoG to make deals and have competitive pricing as a majority of people who game tend to favor consoles instead of PCs and can't be bothered to do what is necessary to set up a physical disc computer game most times.

No idea where you buy your games, but the shops in my region have pretty big PC sections. And they aren't just selling the latest stuff either, but lots of classics, budget games and bargain bin stuff as well. Most retail PC games now are just Steam keys that come with a box and a disc for convinient install anyway.

So... what is your point? PC gaming sections are always dwarfed by console sections in size, variety and abundance.

side note: I am not a fan of these solvemedia checks.

The contents aren't really the same. A physical copy brings with it certain advantages like being able to play the game on any 3DS and/or Wii U. A physical copy is likely to go on sale more often too and you can resell it.

It's like buying a car that can be driven on any road or a car that can only be driven on the road you bought it on and can never be resold. If such cars existed, they certainly would not be the same price.

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