Nintendo Explains Why Digital Games Aren't Any Cheaper

[hickwarrior]

I think I spotted a spelling error: conceed should be concede.

OT: Eeeeurgh, nintendo... Like everyone else has said, this is BS. Pure and simple. Though I'm not sure how much it costs for them to store all that content on the server, make it hacking proof as much as possible and other costs for maintaining a digital distribution...*gasps* but the fact that they keep the prices around the same level as a few years ago is unacceptable, especially considering how steam is doing things.

I mean, mario tennis(forgot the actual name for the 3DS title) is STILL 40 euros? Get bent nintendo...

 

[putowtin]

digital copies, sold at a discount could actually increase your sales!

Take Joe Blogs, he's bored on a thursday night, he can't be bothered leaving the house, so he starts browsing what games are available for him to download. 10 minutes later he's bought a game, Joe's happy, as are the publisher/ game developer.

The future Nintendo... aim for it and you'll be flying high once more!

 

[gamegod25]

"We decided that, since the contents are the same, the company would offer the software at the same price, be it the packaged version or the digital version."

Except that it's not really the same thing. With a physical copy you get a box, manual, etc. combined with the security and trade potential that comes with a physical copy, PLUS the possibility to buy it for cheaper (or with special extras) at retail rather than digitally.

And of course there is the reduced bottom line with digital games. Cutting the various costs to manufacture, ship, and stock a physical game means more of that money is simply going back into your pocket. Not that I can blame you for wanting that but its not giving me any incentive to buy digitally instead of physically either.

The bottom line is you (likely) want people to buy digitally so then you keep all the profits to yourself yet give no real incentive to do so for the consumer. And since you still charge sales tax for digital downloads there isn't even that going for you.

 

[Another]

It's completely common to sell box and digital at the same price on release. Its the trend most of the industry follows. Is it the right thing to do? I don't think so since you are cutting out the middle man if you own the digital shop in question.

Personally I wouldn't be to bothered about this if it weren't for a different problem Nintendo has. Letting games depreciate over time. I can still go into my local Target and see copy's of New Super Mario Bros for the DS of all things, still going for $40, hell Super Mario 64 DS is till $30 on amazon. That was a release window title on the DS. Seriously, what the fuck Nintendo?

 

[blackrave]

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?

If your only counting Steam Sales. Which are just that- sales and really old games.


Last time I checked a very good chunk of the games- especially newly released games on Steam were still sold at physical copy full price.

And that is why I never buy game with full price
Only when it drops 33+% of the price I will get it
Because digital prices should have been at least 33% lower, instead we get same pricing
And why?
Not to piss off retailers and all associated companies.
As far as I care retailers&co can go and die in a fire.

 

[piinyouri]

I'm going to take a stab at this.(And probably get it all wrong because I'm an idiot)

Part of the price in anything comes from the labor required to make it right?
The thing is, with digital copies, there is dramatically less, if any physical labor involved. Once software has been made once, you can copy it an infinite number of times for very little labor.

I'm not saying digital should be free, but by my reasoning, digital is very justified in being sold at a lower price than physical copies where the material for the case, book ect have to be considered and produced. And of course digital knocks out any middleman required for shipping, hauling ect.

Idk, like I said, I'm probably wrong.

 

[hickwarrior]

Idk, like I said, I'm probably wrong.

That would be correct. See, running serverrs and keeping them stable does require someone to keep an eye on them. You also need a connection to the internet to allow people to download the games. You also need to keep in mind that equipment like that can degenerate. Those are a few factors that do go into the costs of maintaining a server farm to keep games on it.

But another thing here is we don't exactly know how much it actually costs to keep this up. While a game can cost a lot of money to make, expecting a more expensive product is reasonable. But if we knew what it actually costed and how many copies could be sold, which is a gamble, we won't know why they think this is a solid way to do business.

To me, they should degrade the price when some amount of time has passed. But nintendo isn't doing this and that is something I just cannot agree with. The best I can do is stop buying nintendo games, but pokémon so I can't keep my word on that one...

 

[Dragonbums]

"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.

You do realize just because other people are idiots doesnt mean idiot cant also be run by idiots too right? I mean hell, I think it speaks more to their idiocy that they decide to copy this one thing from modern game publishers but not something like, I dont know...using more modern hardware...

And digital games on platforms like Steam only remain the same as physical copies for a short time before the prices dropping while retail remains fixed around 60 dollars.

I didn't say they weren't being stupid, but the way comments on this thread is going is less of just being genrally tired of digital copies being the same as retail copies and more or less being like "X company is stupid for doing this what clowns" like they are the only company doing it.

Doesn't make it better, but considering how they are basically reinforcing the standard mentality it doesn't even surprise me at all.

 

[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.

 

[Strazdas]

So they say that digital games arent cheaper because the buyers may actually want to pay less for them? Great circulr logic you got here pal.

That would be correct. See, running serverrs and keeping them stable does require someone to keep an eye on them. You also need a connection to the internet to allow people to download the games. You also need to keep in mind that equipment like that can degenerate. Those are a few factors that do go into the costs of maintaining a server farm to keep games on it.

But another thing here is we don't exactly know how much it actually costs to keep this up. While a game can cost a lot of money to make, expecting a more expensive product is reasonable. But if we knew what it actually costed and how many copies could be sold, which is a gamble, we won't know why they think this is a solid way to do business.

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.

 

[XX Y XY]

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.

 

[hickwarrior]

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...

 

[MeChaNiZ3D]

...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.

 

[Casual Shinji]

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

 

[Guffe]

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.

 

[Andy Shandy]

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.

 

[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.

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.

 

[spartandude]

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

 

[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?

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.

 

[somonels]

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.

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.