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Nintendo President Vows Cheap Games
Chris Morris, over at CNN's Game Over column, had a chance to talk to Nintendo President Iwata last week about that company's goals for their next generation console. The message Morris came away with: $60 games are not in Nintendo's plans. From the article: "If we can come up with an addictive, but simple title - such as Tetris 15 years ago - my attention should be focused on containing costs ... So, I would make it available through the Virtual Console. I think the opportunity for ourselves will be much larger than software that costs $50-$60. ... Of course, there are a number of people waiting for a 'masterpiece' title. For those games, we'll utilized traditional distribution channels."
Nintendo will have much of the old SNES and Sega Genesis catalog available for download. There's a lot of games out there that I didn't get to play the first time around. Heck, this would be a lot like the Phantom game console, only real.
A Zelda, Mario, Metroid, etc incarnation will always sell like hotcakes, so why not just offer them at a discount price to begin with.
Because if they were to do this, they wouldn't be Maximizing profit. You sell Zelda at the 50 dollar price point initially to customers like myself, who will whip out a check the second it comes out, and you keep it there, so that little billy has time to save up to buy the game at full retail price.
The only reason you drop prices is because after a year and a half, there is plenty of new hotness out there, and chances are, you will get lost in the full retail price shuffle. So you slap a distinctive yellow stripe on top of the box, slash the price to 20 bucks, and sell to everyone that "heard it was good from somewhere" but weren't willing to fork over $54.11 just to see if he would enjoy running around as an elf with a boomerang. You don't get as much profit, but you're making more money then you would selling 0 copies at $50.00.
"Inattention makes clowns of us all" -Bean