Smyths Toys Manager reckons if Nintendo Lowered there game prices they both make more money?

[Corrie1960]

So I was in Smyths toys yesterday it's a shop in the UK & Ireland (I'm from Ireland BTW)

I was pre ordering 3 Nintendo switch games that are €59.99 each

The Legend of Zelda, Links Awakening
Pokémon Sword
Luigi Mansion 3

I do this becusse if you pre book €5 per game they will give you €5 extra of on the day of release I think it's a decent deal and cheaper than GameStop (robbers)

So when I was nearly done we said to me is there any Sony game or Xbox you want to pre order I laughed and said no I usually wait till they hit €25, €29.99 and I only buy Nintendo day 1 as two years down the line they will only be the same price to which the manager replied he hates that Nintendo don't do price cuts like Sony or Xbox for there software and if they did Nintendo and the store would make so much more money, but is he right?

As I said I don't mind buying day 1 as I get or play day 1 and have no fear of missing out on a good deal plus getting €10 of extra on the day is good Well technically €5 but that's done months in advance you'd forgot.

So what do you think?

 

[NekoNeko]

Certain games would sell more if they lowered the prices but Nintendo doesn't want to train the customers to wait for sales and thinks that devaluating games does more harm in the long run than short term sales.

Also more unit sales doesn't necessarily mean more revenue.

 

[Tunesmith]

The argument could be made Nintendo makes more money keeping their titles at full price because people do buy them, in part because they are assured that the games will retain their value for a long period of time.

That Smyths offers you a 5 EUR discount as an incentive of doing business with them is irrelevant in this context, that money isn't coming out of Nintendo's pocket.

 

[TheInfinityGauntlet]

One of the main reasons I'm out of Nintendo's ecosystem is their user hostile pricing on older titles, but it's clearly working for them or they would've changed model entirely by now so I'm not entirely sure a Smyths manager's word is worth a bunch on it

 

[Corrie1960]

Certain games would sell more if they lowered the prices but Nintendo doesn't want to train the customer to wait for sales and thinks that devaluating games does more harm in the long run than short term sales.

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Forgot to mention also if a game I pre ordered is €59.99 on the day is cheaper the day or realise say 54.99 I still get €5 off on the day along with the €5 I already put down I had that happen last year with Pokémon let's go pikachu

 

[sir_crocodile]

I assume a lot/all of the cuts are borne by nintendo, so obviously the manager would be in favour of that lol

I doubt Nintendo would make more money as they're selling well at full price anyway

 

[unicornKnight]

Certain games would sell more if they lowered the prices but Nintendo doesn't want to train the customers to wait for sales and thinks that devaluating games does more harm in the long run than short term sales.

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Yes but they could be selling them lower in the first place. I'm all for them not dropping prices but games like Yoshi or Kirby or DK or Arms could do much better if they were released at 40 or 50$.

I doubt Nintendo would make more money as they're selling well at full price anyway

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Well yeah but it all depends on how much more they would sell. If they dropped 20$ but sold like 10% more obviously it wouldn't be to their interest.

 

[DoctorOak]

Nintendo's first party releases sell millions of copies and are among the only physical releases in the industry to have such significantly long tails that they continue selling for years after release.

They don't reduce the prices of their games because they don't need to. They will sell.

For the retailer, they'll see it on their own local level selling less Nintendo stock overall than other platforms but the other platforms will see games rotate out of stock pretty rapidly. An Xbox game released last year is very unlikely to be on Smyth's shelves today. You'll absolutely still see Pokemon Ultra Sun/Ultra Moon, Breath of the Wild, Mario Odyssey, etc, on the shelves on Nintendo's section, though. And those games will sell.

That's the difference. It doesn't necessarily work out for the retailer - they don't care what the game is, so long as it's a product sold. But Nintendo cares and Nintendo that profits.

 

[LunarKnite]

Sure, it might boost sales a bit and help retailer relationships, but Nintendo's in an enviable position with how they can price games. A significant reason why PS and Xbox games go on sale more is because a lot of the big hits are also on PC where the race to the biggest discount is at it's worst. Nintendo up until recently, and mainly just with indie games, didn't have this overlap so consumers aren't taught to look for sales quite as much since there was not much, if at all, price competition for the majority of their games.

 

[It’s Time To Go]

Symths Ireland aren't much good and their staff in my experience are appalling so I can't say I'd set much store in what they say. Only a few years ago I was told by a Symths manager in swords that 'Zelda is definitely available on the PS4 because Nintendo made a deal with sony'

 

[Bazry]

Yes but they could be selling them lower in the first place. I'm all for them not dropping prices but games like Yoshi or Kirby or DK or Arms could do much better if they were released at 40 or 50$.

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I don't disagree really about those games, but Kirby, DK and Arms have all sold over 2m copies, with Yoshi i'm sure probably already there as well. How many more copies do you think they'd sell if they sold it at a lower prices? All of them seem to have done well at the price they're at

 

[Lant_War]

Mario Kart 8 Deluxe is still in many top 10s around the world, why would they drop the price? Of course, it's worse for the consumer, but it doesn't really make sense to expect them to lower prices.

 

[Rotobit]

I understand why they don't, Nintendo really does have an evergreen line-up most of the time.

I think they should more aggressively pursue the Nintendo Selects range, though. Star Fox 64 3D released in 2011 and it only just got the Selects treatment this year. Same goes for GotY editions, Breath of the Wild should come bundled with all the DLC at this point.

 

[kjtc1979]

It takes a long time, but they do reduce prices eventually. They've also been more aggressive with sales this generation than they ever have before. Their marquee titles are on sale regularly for $10-$20 off. In the U.S., at least.

 

[Ruruja]

Main reason I don't buy Nintendo consoles is due to the price of their games, so yeah I'd agree.

I bought a used 3DS a few years ago and I still only have 1 game for it.

 

[Deleted member 10737]

it's not rocket science
1. they keep selling so there's no reason to drop the price
2. dropping the price for those games that aren't selling as well sets a precedent and then people would wait for price drops on mario and zelda as well

what they're doing is working well for them, there's no reason to change it. obviously as a consumer i'd love it if the prices dropped but i get why they don't and i've made my peace with it.

 

[rochellepaws]

The value is obviously held for a lot of the more popular games in long running and well respected brands but I think new IPs like Arms wind up suffering from the strategy and never get the wider audience who may try it out at a lower price.

 

[Akita One]

it's not rocket science
1. they keep selling so there's no reason to drop the price
2. dropping the price for those games that aren't selling as well sets a precedent and then people would wait for price drops on mario and zelda as well

what they're doing is working well for them, there's no reason to change it. obviously as a consumer i'd love it if the prices dropped but i get why they don't and i've made my peace with it.

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Yeah, and also...maybe not take advice from a random toy store employees on how to run a gaming business who clearly only has his best interest in mind.

I assume a lot/all of the cuts are borne by nintendo, so obviously the manager would be in favour of that lol

I doubt Nintendo would make more money as they're selling well at full price anyway

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Yup, and price cuts do not equal some explosion in sales. People in here are ignoring day one business logic.

 

[JaseC64]

I dont agree with their pricing so not buying their hardware due to it. They need to be competitive coming from ps4 and PC software pricing here.

Sure it's working for them but you or I dont benefit from it. They are a company making millions. It shouldnt be accepted.

 

[DavidDesu]

It definitely played a factor in me selling my Switch (the first Nintendo console I've owned since the GameCube). There was games I might have tried at some point in time if I knew prices would fall like they do everywhere else, but knowing that an overpriced title today is still going to be an overpriced title in like 2 years time does put you off quite frankly, when you're not as super keen a Nintendo fan as other people are.

 

[unicornKnight]

I don't disagree really about those games, but Kirby, DK and Arms have all sold over 2m copies, with Yoshi i'm sure probably already there as well. How many more copies do you think they'd sell if they sold it at a lower prices? All of them seem to have done well at the price they're at

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Don't like to speculate so really can't tell.

 

[Rezsolution]

Best place to buy games here. DMCV was mad cheap if you pre-ordered.

 

[Danielsan]

There are a ton of Nintendo games that I would have bought at a € 20 price point, but because of Nintendo's pricing I will simply never give a shot. Things like Kirby, Yoshi, Mario Tennis or Mario Party. They're all B tier games in my eyes, and no way that I'm paying € 40 for them, which is Nintendo's "generous" discounted price.

 

[Flipmenex]

It works for Nintendo and Nintendo fans buy it anyway, so there's no reason for them to change.

I rarely buy any games for my Switch due to the pricing, but i'm not Nintendo's target consumer anyway.

 

[Dyle]

The Smyth's toy manager is right, they would sell more copies, but the cost of doing so would damage the power of their brands and that is why they keep them high. It's the same reason why Disney stuff is generally more expensive, if you want the best family content in the medium you're going to be paying up, and the price is a not insignificant part of why people understand it to be the best brand available

 

[Apathy]

I but waaaaaay less Nintendo games because there are no sales. Hell, the only game I have pre-ordered right now to get at launch is links awakening because I'm getting a discount on it.

 

[Voytek]

Honestly I don't think I'll buy another Nintendo console because of their pricing. The Switch just hasn't been worth it for me.

 

[OldBritBloke]

Honestly I don't think I'll buy another Nintendo console because of their pricing. The Switch just hasn't been worth it for me.

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I'm in the same boat, but in my case the eye opener was the 3DS. It was my first Nintendo system since the SNES, but the sky-high cost of years-old games on that thing has taught me to steer clear in future.

 

[Coxy]

Of course he's right - I have so many games on my Watch List which I won't bite for until they hit a certain value. I don't pay more than £30 for any game except for the odd exception.

 

[Saint-14]

One of the main reasons I'm out of Nintendo's ecosystem is their user hostile pricing on older titles, but it's clearly working for them or they would've changed model entirely by now so I'm not entirely sure a Smyths manager's word is worth a bunch on it

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Yep, the Switch is my first Nintendo console since the NES and it have been such a disappointment, mainly because of the game prices but also how shit the joycons are.


Also can we drop the "Nintendo games sell for years that's why they don't drop in price" argument please? Because that's only true for a few games, what's the excuse for the rest?

 

[Robin64]

I'm sure the Switch will get Nintendo Selects just as the 3DS and Wii U did, which is where you get the super discounted €20 (or less) versions.

 

[Zoantharia]

On one hand Nintendo games are probably quite price inelastic, but on the other I do think it's a matter of principle on Nintendo's side.

And it's not like price cuts never happen. There are eshop sales and individual stores might have their own promotions etc. And Nintendo Selects is a thing

 

[Roukira]

I also preorder Nintendo games at Fnac (in France) they are usually at some price between 45 and 60€ + 10-15€ coupon on your account for next purchases. For example I preordered Astral Chain for 52€ + 10€ on account and Link's Awakening for 55 + 15€ on account.

 

[Gavin Stevens]

Always hated Nintendo's pricing stuff. It's god awful. I understand it though, I mean, a games quality doesn't drop just because time has passed.

But I've seen launch 3DS titles still going to £35. That's utterly bloody stupid. BOTW still goes for full price... why? It's an incredible game but just drop the damn price already.

Every other format release at full price then as interest dwindles, prices drop. Nintendo never seem to do that, even when interest has faded...

 

[Deleted member 36622]

Agreed and this is even more true when it comes to hardware.

Joycons would have been such a huge hit by now if they were 30-40 bucks instead of 70-80.

 

[Subnats]

They're easily the cheapest place to buy Switch games already so it makes sense they'd want to drop prices further.

 

[MasterChumly]

I mean he's right to a certain degree. There are numerous titles that probably are just rotting on their shelves that would be ripe for a price cut to help move software.

 

[sir_crocodile]

Always hated Nintendo's pricing stuff. It's god awful. I understand it though, I mean, a games quality doesn't drop just because time has passed.

But I've seen launch 3DS titles still going to £35. That's utterly bloody stupid. BOTW still goes for full price... why? It's an incredible game but just drop the damn price already.

Every other format release at full price then as interest dwindles, prices drop. Nintendo never seem to do that, even when interest has faded...

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Interest doesn't really ever truly fade though, as is clear from the Japanese numbers. Whenever there's a lull in releases, the high rated nintendo games - even the launch ones - end up back in the charts.

 

[Eoin]

This may be true for some games.

Nintendo's biggest games, however, sell so well that it's really difficult to see how they could make up for a price drop with additional sales. Games like Mario Kart, Super Mario Odyssey, BotW and Smash Bros. have all sold over 10m copies on Switch - these are games with absurdly high attach rates, high enough to suggest that most Switch owners who are interested in those games have bought them.

Games where a price drop might work well enough to make more money overall would probably be games like Mario Tennis Aces or 1-2 Switch - both those games have sold well but could probably sell another few million with sensible price drops (or some other price incentive such as bundling them with another game at a reduced overall cost).

 

[entrydenied]

One of the main reasons I'm out of Nintendo's ecosystem is their user hostile pricing on older titles, but it's clearly working for them or they would've changed model entirely by now so I'm not entirely sure a Smyths manager's word is worth a bunch on it

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Yeah. The manager is not a good retail worker if he thinks regular sales are good for his company. They will just end up making lower margins if Nintendo were to have more sales.

 

[Deleted member 388]

For consumers who resell their games the pricing scheme is great. Play the game for as long as you want and the resale price doesn't drop much.

Imagine getting Days Gone for $60 and then it goes on sale for $20 a month and a half later.

 

[GiantEnemyCrab]

Well, I buy very few games on Nintendo systems and price is a big reason for this. And I never buy digital from them.

The "quality" argument is no longer really valid, too, for me at least. Other devs make quality games, too.

 

[test_account]

Its possible that the store makes the same amount of money regardless if the game is €60 or €30, and if the game is €30, its likely that they would sell more copies.

 

[*Splinter]

Well for me personally, I'd spend more with sales. I buy a game or 2 every month (mostly below £20) on PS4, whereas on Switch I have... 4 games. Total.

Whether or not that actually translates to more profit for Nintendo and how other people's buying habits factor in... who knows.

It sucks though. There are plenty of games I'm at least vaguely interested in (NSMB, Captain Toad, Snake Pass) but don't even think about because they'll never be available at a reasonable price.

 

[Deleted member 18161]

Quality doesn't need price cuts.

 

[TechnicPuppet]

It would work on me that's for for sure. I'm thinking of just settling the switch because the game prices are ridiculous and a lot of the games are bare bones and would get slaughtered for it if it was MS putting them out.

 

[808s & Villainy]

One of the main reasons I'm out of Nintendo's ecosystem is their user hostile pricing on older titles, but it's clearly working for them or they would've changed model entirely by now so I'm not entirely sure a Smyths manager's word is worth a bunch on it

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LOL

 

[BarryFishFinger]

Anecdotally, I'd have bought a WiiU and a load of games and I'd already have a Switch and a load of games by now if it wasn't for Nintendo's insistence on keeping prices high. Even when the WiiU was dead in the water and it was just a case of shifting stock I still couldn't find a new one at a sensible price.

When the new rumoured switch doubtless comes out, I fully expect that to be around £350 and the default switch to remain at £280 here in the UK.

 

[Camisado]

I've gotta be honest, I'm less likely to take a gamble on a Nintendo game when they are £10-15 more than something on PS4.

I understand why they don't though, it's clearly working OK for them.

 

[Deleted member 32018]

Nintendo games generally have very long legs. It works for them.

And if you are worried about the price either you do wait for sales that happen occasionally or you buy the game, play it to completion and then sell it and get most of your money back.