Topic: 'Majority of Nintendo-Published' Retail Titles Available for Download

[NWR_insanolord]

As for the price point, I've been looking into buying a Vita recently, and at least on Amazon the digital download versions of retail Vita games are usually $5 cheaper than the physical products, so they are passing on some of the savings to the consumer.

[Ceric]

As for the price point, I've been looking into buying a Vita recently, and at least on Amazon the digital download versions of retail Vita games are usually $5 cheaper than the physical products, so they are passing on some of the savings to the consumer.

But this is Nintendo so I seriously doubt there be a price change.

[NWR_insanolord]

As for the price point, I've been looking into buying a Vita recently, and at least on Amazon the digital download versions of retail Vita games are usually $5 cheaper than the physical products, so they are passing on some of the savings to the consumer.

But this is Nintendo so I seriously doubt there be a price change.

That may be true, but I wouldn't have expected it from Sony either. I was kind of shocked when I saw that.

[Ceric]

As for the price point, I've been looking into buying a Vita recently, and at least on Amazon the digital download versions of retail Vita games are usually $5 cheaper than the physical products, so they are passing on some of the savings to the consumer.

But this is Nintendo so I seriously doubt there be a price change.

That may be true, but I wouldn't have expected it from Sony either. I was kind of shocked when I saw that.

True except Sony does have sales and if the PSPGo was a reasonable success Vita wouldn't have physical games.  They would sell the memory cards and units in store.  Sony wants you to buy all Digital.  Nintendo seems to see it as nothing other than an alternative medium.

[nickmitch]

I don't get how you can say that publishers don't feel like they're making enough on $60 retail games, but think it's unfair to release digital games at that price level. The supply chain costs are probably equal to increasing server costs. Then you get to cut out retailers, but their cut is only about 5 to 15% max. That retail piece they get back is what's pushing the profitability up.

[NWR_insanolord]

If we're talking retail console games, which can be upwards of 5-10 GB in size, the server and bandwidth costs are going to be quite substantial. And for right now, when everything is still going to be available in physical form as well, I can't see the manufacturing/shipping costs decreasing that much, since a lot of that's probably fixed costs.

[nickmitch]

Right, that's what I'm saying. Making a retail game available for download doesn't slash costs just because it there's no middleman. So, pricing downloads at the same level as retail makes sense.

[Ceric]

I don't get how you can say that publishers don't feel like they're making enough on $60 retail games, but think it's unfair to release digital games at that price level. The supply chain costs are probably equal to increasing server costs. Then you get to cut out retailers, but their cut is only about 5 to 15% max. That retail piece they get back is what's pushing the profitability up.

If we're talking retail console games, which can be upwards of 5-10 GB in size, the server and bandwidth costs are going to be quite substantial. And for right now, when everything is still going to be available in physical form as well, I can't see the manufacturing/shipping costs decreasing that much, since a lot of that's probably fixed costs.

I have posted here before Bandwidth cost in regards to MS going fully digital.  Make no mistake those costs are not negligible but, I would be lieing to say that I think they are on parity with the cost to manufacture, store, and ship physical games.  I believe that in the end once everything is accounted for (Server, Electricity, Bandwidth, maintenance, etc.)  that the costs would max out at 50% of what it take to go physical.

Now that being all said and done where talking what 50% of a small piece of the actual cost of getting a game to you.  Most of the costs are still there.  The biggest difference being its easier to predict how many units need to be sold digitally to pay for all of the fixed expenses because your non-fixed expenses are a little more predictable.

[TJ Spyke]

Right, that's what I'm saying. Making a retail game available for download doesn't slash costs just because it there's no middleman. So, pricing downloads at the same level as retail makes sense.

Retailers get like $8 per $60 game, there is also the cost to manufacture and ship the game, so digital downloads ARE cheaper for the publisher and they should pass those savings (or at least some of them) onto consumers.

[ShyGuy]

Publishers should sell digital downloads for the price people are willing to pay.

[Ceric]

Right, that's what I'm saying. Making a retail game available for download doesn't slash costs just because it there's no middleman. So, pricing downloads at the same level as retail makes sense.

Retailers get like $8 per $60 game, there is also the cost to manufacture and ship the game, so digital downloads ARE cheaper for the publisher and they should pass those savings (or at least some of them) onto consumers.

If Nintendo is also selling the Digital versions of the game at retailers, which they have indicated, that $8 will still be paid.  You wouldn't want to have disparity between the methods of buying digital. 

The next question you ask is why sell digital games in a physical store?  Glad you asked.  Marketing and Bulk sales.  You sell lets say Gamestop batches of download codes.  You don't let them buy them one at a time.  You don't even have to give them any media for them to be on and let them handle that side of things.  You've just cut out the money that went to the making of physical items and shipping them.  Plus you just gotten paid for lets go little, 1,000 wholesale copy of the game.  Money you can reinvest while the games sit waiting to be bought.

[nickmitch]

Right, that's what I'm saying. Making a retail game available for download doesn't slash costs just because it there's no middleman. So, pricing downloads at the same level as retail makes sense.

Retailers get like $8 per $60 game, there is also the cost to manufacture and ship the game, so digital downloads ARE cheaper for the publisher and they should pass those savings (or at least some of them) onto consumers.

But we're talking about publishers who don't think they're making enough on their games. That $8 justifies maintaining the selling price more so than dropping it.