Topic: Downloadable version of New Super Mario Bros 2 to cost £39.99 in the UK.

[Pixelated Pixies]

As confirmed by Nintendo UK earlier today, New Super Mario Bros 2 will cost £39.99 to download via eShop. Meanwhile, Amazon UK is currently selling the physical version of the game for £29.99.
 
Released simultaneously at retail and online later this week, NSMB 2 represents a bold new direction for the company, which has up until this point taken a slow and steady approach to online distribution. Historically, Nintendo has also been hesitant to stand on the toes of retailers, whom Nintendo has found invaluable in reaching sections of the market who would not traditionally consider themselves to be gamers.
 
Perhaps then it's not surprising that Nintendo would adhere to their own recommended retail price. The issue Nintendo will face in promoting the digital version of the game, however, is that there is no benefit to owning a downloadable copy beyond the fact that it lives on the system, which in itself might actually be a disadvantage. Not only is the physical copy cheaper, it is also more portable. That's portable in the sense of being transferrable and useable on different systems, not in terms of being transportable. A physical copy can be lent to friends or family, it is easily transferrable to any 3DS, and it can also be resold.
 
As anyone who listens to RFN will know, Nintendo's reluctance to implement an online profile system comprobable to those offered by Apple, Steam, Microsoft and Sony, has meant that consumers must jump through hoops in order to exercise their licenses for digital games in the event that their system is lost or stolen.
 
As mentioned, there is also the crucial issue of resale. For younger people and those who simply like to budget, trade-ins offer a way for people to get some additional value out of a game that they've completed, with the value usually being put towards their next video game purchase. Something which is not possible with a downloadable copy.
 
All of which is beside the point, because looked at in purely economical terms the physical copy is simply better value.
 
What do you guys think? Has Nintendo made a miscalculation? Should this pricing scheme become the standard, whereby digital copies are more expensive than their retail equivalents, will it determine by which means you obtain these games? Or is the convenience of downloading, along with having it be always on the system, enough for you to justify the extra £10.00 ($15.69)?

[Disco Stu]

Holy **** that's more than $60!  That. is. ridiculous.  I'm not in Europe, but I am so sorry for ya'll if that isn't a mistake.

[TJ Spyke]

Holy **** that's more than $60!  That. is. ridiculous.  I'm not in Europe, but I am so sorry for ya'll if that isn't a mistake.

Gas is about $9 a gallon in the UK, prices are more expensive there (taxes are a big part).

[Shaymin]

Digital distribution:

You're doing it wrong.

[Pixelated Pixies]

Holy **** that's more than $60!  That. is. ridiculous.  I'm not in Europe, but I am so sorry for ya'll if that isn't a mistake.

Gas is about $9 a gallon in the UK, prices are more expensive there (taxes are a big part).

True, but let me just say. Having a National Health Service? Pretty darn awesome.

[Sarail]

Holy **** that's more than $60!  That. is. ridiculous.  I'm not in Europe, but I am so sorry for ya'll if that isn't a mistake.

Gas is about $9 a gallon in the UK, prices are more expensive there (taxes are a big part).

True, but let me just say. Having a National Health Service? Pretty darn awesome.

Just another reason why I'm wanting to move there.

[TJ Spyke]

Digital distribution:

You're doing it wrong.

I think it's their way of saying that they will provide digital games, but will also appease their retail partners.

[Kairon]

@_@ I just can't think of a reason to price digital releases higher than physical ones. I mean, I expected Nintendo to price the eShop version right at MSRP and let retailers undercut them, but pricing eShop versions ABOVE MSRP?!?!?

Either way, I hope retailers have the option to sell their digital versions cheaper than eShop versions. I thought that was the whole point: to not only do digital distribution, but give brick and mortar retailers the tools to be part of that economy and thus bring non-net-savvy consumers into the fold.

[Pixelated Pixies]

@_@ I just can't think of a reason to price digital releases higher than physical ones. I mean, I expected Nintendo to price the eShop version right at MSRP and let retailers undercut them, but pricing eShop versions ABOVE MSRP?!?!?

I believe £39.99 is the MSRP for most 3DS releases, but retailers frequently undercut that price (usually to £29.99). I can't remember the last time I paid MSRP for a game, even new. That's partly why Nintendo's eShop pricing for this game is so crazy. It bears no relation to reality.

[Kairon]

Oh, well if 40 pounds is MSRP then that makes sense. I just hope retailers have the ability to price their digital copy sales cheaper.

[TJ Spyke]

Oh, well if 40 pounds is MSRP then that makes sense. I just hope retailers have the ability to price their digital copy sales cheaper.

I think that part was confirmed by Nintendo.

[Kairon]

Oh, well if 40 pounds is MSRP then that makes sense. I just hope retailers have the ability to price their digital copy sales cheaper.

I think that part was confirmed by Nintendo.

You're right, it was here:
http://www.nintendo.co.jp/ir/en/library/events/120427/05.html

In this case, retailers are going to decide the retail prices of our digital download products, which have been decided by Nintendo so far. Nintendo will not be involved in the retailer’s retail price decision.

Sounds like you can buy the MSRP digital version from the eShop, or the marked-down digital version from the retailer.

I have no problem whatsoever with that model.

[Pixelated Pixies]

Oh, well if 40 pounds is MSRP then that makes sense. I just hope retailers have the ability to price their digital copy sales cheaper.

I think that part was confirmed by Nintendo.

You're right, it was here:
http://www.nintendo.co.jp/ir/en/library/events/120427/05.html

In this case, retailers are going to decide the retail prices of our digital download products, which have been decided by Nintendo so far. Nintendo will not be involved in the retailer’s retail price decision.

Sounds like you can buy the MSRP digital version from the eShop, or the marked-down digital version from the retailer.

I have no problem whatsoever with that model.

Either do I, I'll be buying a physical copy; but Nintendo Should have a problem with it. Nintendo have a vested interest in inducing 3DS owners to go on to the eShop and purchase these games. The least they could do would be to make sure that the digital copies are priced competitively. The market reality is that 3DS games are not sold for £39.99, regardless of what the MSRP is.

I don't understand why Nintendo would insist on adhering to their own RRP when they've given retailers free reign to undercut them (both with physical and digital versions). It's kind of absurd that a business would purposely constrain themselves like that. Some of the main benefits of digital distribution are that it's flexible and reduces publishing costs. This decision by Nintendo tells me either that they still don't get it, or that they're still hestitant to fully embrace the changes that digital distribution will herald.


In either case, it's a little worrying.

[Kairon]

They're attempting to bring retailers into the fold so that the digital revolution isn't only embraced by technophiles like us, but the wider, more traditional population of Nintendo consumers who rely heavily on retail.

[Pixelated Pixies]

They're attempting to bring retailers into the fold so that the digital revolution isn't only embraced by technophiles like us, but the wider, more traditional population of Nintendo consumers who rely heavily on retail.

I can understand equalising prices between the two versions. I'm cynical enough to understand why Nintendo would want to avoid undercutting retailers, but overcharging for the downloadable version seems to me to be an extreme and unnecessary measure. A strong relationship with retailers is of course important for Nintendo, but it's not Nintendo's job to bring retailers into the fold as far as digital distribution goes.
 
I also don't understand how overcharging consumers who wish to purchase a digital copy directly from Nintendo in any way promotes digital distribution to consumers who would traditionally purchase from retail. If anything, those consumers are going to feel vindicated in their choice of purchasing at store.
 
I suppose once retail stores start selling codes for these titles, then we might see an uptake from those who would not normally download games; but again, that's got nothing to do with the price of the eShop version.
 
It just seems to me that Nintendo have put the interests of retail stores before the interests of their consumers. As a long time Nintendo fan who has waited years for the company to get on board with digital distribution, I was very much looking forward to downloading a Mario game on release day for the first time. It's just dissappointing that Nintendo have decided to make that option very unappealing.

[Kairon]

You could argue that Nintendo isn't overcharging on the eShop, just adhering to the msrp that they themselves set.

But yeah, this is definitely Nintendo not adhering to the way that digital is usually done (though I hear that full retail PS3 and 360 retail/download games are also initially priced high). It also depends heavily on retailer participation. We'll have to see if the strategy works.

Honestly though, I'm shocked that the MSRP is so high to begin with. Correct me if I'm wrong, but I think in NA Nintendo game MSRPs are close to the actual store sticker prices, not a whopping 25% higher!

[Pixelated Pixies]

You could argue that Nintendo isn't overcharging on the eShop, just adhering to the msrp that they themselves set.

But yeah, this is definitely Nintendo not adhering to the way that digital is usually done (though I hear that full retail PS3 and 360 retail/download games are also initially priced high). It also depends heavily on retailer participation. We'll have to see if the strategy works.

Honestly though, I'm shocked that the MSRP is so high to begin with. Correct me if I'm wrong, but I think in NA Nintendo game MSRPs are close to the actual store sticker prices, not a whopping 25% higher!

I guess you could argue that they're just adhering to their own MSRP.

But I don't think the MSRP should have any bearing on the price of a digital license. My understanding of the The Manufacturers Suggested Retail Price is that it encompasses the cost paid back to the manufacturer for production and distribution, plus profit for both retailer and manufacturer. If the retailer feels that they can sell the product for less and still make a profit, then of course there's no obligation for them to sell the product at the MSRP.
 
What I don't understand is why Nintendo would adhere to the MSRP for a digital release when many of the costs associated with a retail product are not applicable. If a game can be sold for £29.99 at retail, bearing in mind that the retailer gets a cut and that this price also covers costs of production and distribution, then there is no legitmate reason in my opinion why Nintendo should be charging £39.99 for a digital copy.
 
I completely agree with you man. This is just not how downloadable content is supposed to work.
 
I'm not sure about NA prices, but in Europe we always seem to get gouged (although perhaps not to the same extent as our friends in Japan and Australia).


 

[Kairon]

What I don't understand is why Nintendo would adhere to the MSRP for a digital release when many of the costs associated with a retail product are not applicable. If a game can be sold for £29.99 at retail, bearing in mind that the retailer gets a cut and that this price also covers costs of production and distribution, then there is no legitmate reason in my opinion why Nintendo should be charging £39.99 for a digital copy.

Well, for one thing, Nintendo doesn't want to offend their close retailer partners by undercutting them and stealing sales away from them. This is a retailer-friendly model of download, not a retailer-hostile situation ala the PSP Go.

Also, Iwata actually spoke exactly to his thoughts on digital pricing back in April:

First of all, regarding your remark that the digitally downloaded software has less value than the traditional and physical, packaged software, I hold doubts about whether it is exactly correct. When I think about it as one of the consumers, for example, I find the value in being able to store a number of software titles in a hardware system and being able to bring them with me wherever I go and, therefore, I may choose this option. Different people value different things. If we said, “This is the only proposal we will make so you have to take it,” it would be a problem as there would be no options for the consumers to choose from. On the contrary, what I explained today is that we are proposing the two formats of sales mechanisms from which our consumers can make their own choices. The needs of society shall be determined by the choices to be made by the consumers. We do not hold such a premise that digitally distributed software has less value. In fact, as we have discussed this with a number of software publishers around the world, we have found that their opinions are completely divided on the topic of the price points of the digital distribution of packaged software. Some publishers believe that the digital versions should be cheaper while others insist that both versions must be set at exactly the same price. So, it is not only Nintendo’s idea. Each publisher has various ideas on this point and, among them, Nintendo is now offering both versions at the same price point (the same suggested retail price).

Somewhat in line with his speech at GDC 2011 Keynote, he seems to be arguing that a game's content and quality determine its value to the consumer, as opposed to its distribution method.

I expect NSMB2 to be released in NA and go for sale on the eShop at whatever the MSRP is... likely $39.99, which seems par for the course for first-party 3DS titles in NA.

[Pixelated Pixies]

@Kairon
 
Interesting. Nice pull. I think the crucial statement there was
 
'we are proposing the two formats of sales mechanisms from which our consumers can make their own choices. The needs of society shall be determined by the choices to be made by the consumers. We do not hold such a premise that digitally distributed software has less value.'
 
Ironically he seems to arguing for consumer choice. Which is exactly what I was suggesting that Nintendo had undermined by pricing their digital copies above that of the retail versions. It's a very weird situation.
 
I would, to a certain extent, agree with his sentiment that digitally distributed software retains the same value to the consumer as a retail product (although there's an arguement to made that a license is worth less than owning a physical copy), but value and price are two different things. Prices should always adapt to reflect the costs of production and delivery. That's how economys work.
 
If Nintendo wanted to offer consumers a genuine choice between digital and retail, the price for the downloadable release would encompass the same amount that Nintendo would usually take from a retail sale, plus marketing costs, and any server costs they deem necessary. In other words they would drop the price by the amount that would normally be accounted for by the retailer and the costs of production. No doubt, this is overly simplistic, but my point is that this would retain the value of the game while reducing the price.
 
Pricing a digital version of a game £10 above what retailers are able to sell it for actually suggests that Nintendo feel that they're not of equivalent value. That in fact digital releases are more valueable.

[TJ Spyke]

Nintendo is not really pricing it above retail price though, they are charging the same amount that they recommend retailers charge. Most retailers may choose to charge less than that, but Nintendo is charging the same amount they suggest retailers do. Nintendo suggests retailers charge £39.99 for the game, hence why the eShop version is that much. Stores there just choose to often charge less than the MSRP (or RRP as it's known in the UK), so essentially stores there think games are worth less than the publisher.

[Pixelated Pixies]

Nintendo is not really pricing it above retail price though, they are charging the same amount that they recommend retailers charge. Most retailers may choose to charge less than that, but Nintendo is charging the same amount they suggest retailers do. Nintendo suggests retailers charge £39.99 for the game, hence why the eShop version is that much. Stores there just choose to often charge less than the MSRP (or RRP as it's known in the UK), so essentially stores there think games are worth less than the publisher.

As I said in one of my previous posts though, RRP is just that. A Recommended Retail Price. Digital is not Retail. A RRP is a price suggested by the manufacturer which allows both themselves and the retailer to make a profit. If the retailer is not involved in that transaction then surely the price should amended accordingly?
 
Regardless, my original point had been that I can fully understand why Nintendo would not wish to undercut retailers, but if Nintendo's digital releases on eShop are going to be consistently more expensive than at retail then surely they can't expect people to actually use eShop to purchase their games. And if that's the case, then Nintendo's recent push for digital distribution on the eShop will be pointless because no one will use it.
 
Nintendo can stand on the beach pushing as hard as they like but they won't stop the tide from coming in. Digital is a cheaper means of distributing content. To artificially set the price higher than that of retail will accomplish nothing. It will dissuade those who were already willing to purchase games digitally and it will drive away those who might have been open to the possibility. The only persons who win here are retailers like Game and HMV.

[Kairon]

I guess Nintendo's intention is that the majority of people buying digital versions of their games will be buying them through retailers to redeem ON eShop, not by paying through eShop itself. Of course, whether that intention will match reality is very much debatable.

[Pixelated Pixies]

I guess Nintendo's intention is that the majority of people buying digital versions of their games will be buying them through retailers to redeem ON eShop, not by paying through eShop itself. Of course, whether that intention will match reality is very much debatable.

I know, right? Only Nintendo could create a system of digital distribution in which the best way of downloading a game is to go to store, lol.

[Kairon]

I guess Nintendo's intention is that the majority of people buying digital versions of their games will be buying them through retailers to redeem ON eShop, not by paying through eShop itself. Of course, whether that intention will match reality is very much debatable.

I know, right? Only Nintendo could create a system of digital distribution in which the best way of downloading a game is to go to store, lol.

Never a dull moment with this company. ^_^

[Kairon]

BTW, has anyone seen any download cards for this in the wild? At retailers either online or brick-and-mortar? And at what price?