Nintendo President: The Free Market Is Not A Game We Like To Play

from the no-cheat-codes-in-the-real-world dept

Nintendo President Reggie Fils-Aime really has a way about trying to suggest that perfectly reasonable and consumer-friendly market developments portend the end of video gaming. Two years ago, we wrote about his attempt to convince people that used video games were bad for consumers (yes, he said that) and his latest, via Slashdot, is to claim that cheap games are a risk to the entire video game industry.

His main concern, it appears, are games for mobile phones that run a dollar or two. He's complaining that these games:
Create a mentality for the consumer that a piece of gaming content should only be $2
Darn those consumers for actually going where the market goes, when Nintendo apparently would prefer to keep things priced at what the market doesn't like. Welcome to the modern world, Reggie, where prices change, and businesses adapt. I'm sure the last laptop you bought cost a lot less than the one you bought a decade ago, but that didn't herald the end of laptops. It's a digital age: prices get cheaper, and the only companies that are really at risk are those who don't adapt and don't learn to be more efficient. Oh, wait... perhaps he's telling us something about his employer...

Filed Under: business models, competition, pricing, reggie fils-aime
Companies: nintendo

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  1. identicon
    I'mokay withcoward, 9 Feb 2011 @ 1:34pm


    Your math is ridiculous. At $40 there are numerous costs involved, including packaging, shipping, manufacturing, import/export costs, dealer/seller fees for shelf space and floor space, etc. At $2 the development costs remain the same, but all those other fees go away. Profit margins are far higher with a system of digital distribution. There is NO REASON why a game distributed digitally should cost the same as one on a store shelf. The only reason they do that is to maintain their store presence. Look at Walmart. How much shelf space does it commit to CDs now? Why is that? It's because the CD companies refused to let Walmart sell singles in store for 99 cents. Hell, they argued like mad to keep Walmart from dropping CD prices to be competitive with iTunes. Could you imagine what would happen if game companies dropped prices for digital downloads as compared to their in-store counterpart??!! It's all about corporate greed and protecting the retail pipeline at this point.

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