Community Forums => General Chat => Topic started by: honda_insightful on October 09, 2003, 09:07:35 AM
Title: Nintendo Sued For Price-Fixing by FTC (history lesson)
Post by: honda_insightful on October 09, 2003, 09:07:35 AM
I stumbled across this fascinating article. Perhaps if Nintendo wants the GameCube (or GC2) to succeed, they need to return to these practices that gave the NES it's 90% market dominance! Here is just a portion of the article:
=========================
By the late '80s, Nintendo... was notorious for the iron-clad terms that it required third-party game publishers to agree to, which gave Nintendo full control over how many cartridges could be manufactured and prohibited publication of a game on rival systems until it had been available on the NES for two years. It's also alleged that Nintendo played favorites when meting out merchandise allotments to retailers, and stiffed stores that dared to drop prices or carry certain competing items. In short, Nintendo was accused of price fixing.
Various States began noticing Nintendo's questionable business practices, and eventually Congress and the Federal Trade Commission became involved. (snip) The FTC was jubilant, crowing about how it had "rejoined the battled against vertical price-fixing by manufacturers and retailers." This would send a message to other countries, it said, about the ethics of doing business in America.
If Nintendo started requiring third-party publishers to develop exclusively for Nintendo, forced retailers to price-fix games or else lose their right to sell Nintendo games, and included lock-out chips to prevent developers from hacking the console, the next-gen GameCube 2 could repeat the NES' success.
Title: RE: Nintendo Sued For Price-Fixing by FTC (history lesson)
Post by: Gibdo Master on October 09, 2003, 09:16:19 AM
Yes and get sued again too.
Title: RE: Nintendo Sued For Price-Fixing by FTC (history lesson)
Post by: PIAC on October 09, 2003, 10:24:04 AM
and have no third parties at all, capitol idea.
Title: RE: Nintendo Sued For Price-Fixing by FTC (history lesson)
Post by: BlkPaladin on October 09, 2003, 11:56:54 AM
The only company that will be able to do that today is Sony. But then again they got into trouble in Japan for Price Fixing. So the short of this is that we will more than likely never see these tactics used again in this market.
Title: RE: Nintendo Sued For Price-Fixing by FTC (history lesson)
Post by: Infernal Monkey on October 09, 2003, 02:11:35 PM
Yeah, cool. I'm sure every third party will be quite happy to let Nintendo dominate them again. =/
"Hey Capcom, wanna make games for our next system?" 'Well, yeah.' "Cool, welp, you've gotta drop all support for Sony and Microsoft's upcoming consoles, then."
*Tumbleweed*
Title: RE:Nintendo Sued For Price-Fixing by FTC (history lesson)
Post by: The Real Mario on October 09, 2003, 04:56:00 PM
Like others have said above me, those are incredibly bad business practices for any company to use. Price-fixing was a marketting tactic commonly used in Japan. Nintendo translated those practices overseas without being fully aware of the laws against it. Price-fixing did not give the NES any part of the market. The NES owned the market because it was the best/only game system with the best games. The price-fixing only protected the NES from any compettiors. Of course this didnt make Nintendo invincible because once the TurboGrafx/Genesis arrived, developers wanted to make games for the most powerful system.
Title: RE:Nintendo Sued For Price-Fixing by FTC (history lesson)
Post by: The Omen on October 09, 2003, 05:15:47 PM
Quote The NES owned the market because it was the best/only game system with the best games. The price-fixing only protected the NES from any compettiors. Of course this didnt make Nintendo invincible because once the TurboGrafx/Genesis arrived, developers wanted to make games for the most powerful system.
And gaming has gone downhill ever since. I think i enjoy a dictatorship, if only in moderation A lot of frontrunning has occured ever since from 3rd partys. and its a little annoying. Take RE or Metal gear or Final fantasy. RE on GC, when all the fans had the ps1...(i'm not complaining), Metal Gear and FF born and bred on Nintendo systems, and finally reborn, after about 8 years, after being exclusive to the Sony machines. I want iron fist control! At least give me facism! People would love if all the best games were on one system.
Title: RE:Nintendo Sued For Price-Fixing by FTC (history lesson)
Post by: S-U-P-E-R on October 09, 2003, 06:34:56 PM
Mind that Nintendo never really went to court, it seems, they just changed their agreements and settled with the FTC, or so it says. Anybody know what the settlement was, if any?
P.S. Sony should be cornholed by the FTC for its all-too-commonly faulty hardware :S
Title: RE:Nintendo Sued For Price-Fixing by FTC (history lesson)
Post by: S-U-P-E-R on October 09, 2003, 07:19:49 PM
Also, Next-Generation magazine did this same feature years ago, and probably without using as many retarded writing cliches:
Quote Universal Goes Ape
Quote The writing was on the wall.
Quote 900-pound gorillas
Quote waiting in the wings
Quote pulls a rabbit out of its hat
Quote bottom of the barrel
Quote kid in a candy store
Quote 800 lb. gorillas (OOPS AGAIN)
Quote Slap on the Wrist
And whatever the hell this means:
Quote Atari Takes a Bath on E.T.
And LOL:
Quote Nintendo's GameCube might be falling behind in the console race these days
Fragmaster is still :cool: tho
Title: RE: Nintendo Sued For Price-Fixing by FTC (history lesson)
Post by: Infernal Monkey on October 09, 2003, 07:24:04 PM
How could Atari take a bath on E.T? THEY'D CRUSH HIM, AND HE'D MAKE THOSE SILLY NOISES! *Cries for E.T*
Toot on, E.T, toot on!
Title: RE:Nintendo Sued For Price-Fixing by FTC (history lesson)
Post by: Matt on October 10, 2003, 03:51:16 PM
Nintendo is not in a position to do that anymore.
Back in the NES days, not having your games on Nintendo's platform was a bad hit, enough to warrant meeting Nintendo's demands.
Today, Xbox 2 and PS3 development would just be easier than following Nintendo's demands.
Also, it is generally bad business practice to do something that got you sued over again.