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Nintendo Lowers Royalty Fees

by Steven Rodriguez - April 10, 2003, 1:44 pm EDT
Total comments: 7 Source: Yahoo/Reuters

Under major pressure to be more competitive with Sony and Microsoft, it will now cost less for publishers to get games licensed from Nintendo.

Everyone has always known that Nintendo has always charged game publishing companies just a little bit more to allow them to put games on the GameCube. This was no problem when Nintendo was dominating the scene, but now that Sony and Microsoft are courting pulishers with cheaper royalty fees, Nintendo has had a tougher time as of late.

Perhaps not for long, though, as the news agency Reuters is reporting that Nintendo is lowering their royalty fees in a move to get more games on the GameCube. Here are some snips from the article:

"Before our royalty rate was a little more aggressive so to the third party publisher it was a little less attractive to make games for GameCube," George Harrison, senior vice president of marketing for Nintendo of America, told Reuters.

"The biggest games of the year last year were games like GTA and they came from an independent publisher," Harrison said. "We need to make sure that we have good relationships with all the independent publishers, because you never know where the next big hit game is going to come from."

"Games from Namco Ltd. and Sega Corp. and Capcom Co. Ltd.... we think are going to be just as important in helping to sell our hardware system this year as much as our own games," he said. "We are going to sell a lot of GameCube and its our job to convince them that we are."

To read the whole article, give your browser a workout and click here.

Talkback

NarmaKApril 10, 2003

Whoo hoo $30 metroid prime 2, well maybe,well hopefully.

anybody else tired of blowing $50 when ever a new game comes out.

ugh im runnin low on funds again

Ian SaneApril 10, 2003

Well it's about time. I've only been wanting Nintendo to do this since, what, the Gamecube launched. The day Nintendo stopped being number one was the day they should have lowering their royalty fees to match the competition's. Now realistically they couldn't have done this with cartridges but once they switched to an optical medium they had no choice. It's all this little stuff like higher royality fees, smaller memory cards, no demo discs, Player's Choice titles that are $10 more than the competition's and every other stupid little "flaw" in the Gamecube that saves them a few bucks here and there that ultimately screws them over. A good deal of Nintendo's practices with third parties, retailers, and consumers make no sense when they're no longer in the number one position.

Too bad the article doesn't mention exactly what they lowered the fees to. If it's still significantly higher than the competition it's not going to do much. If I was a third party I wouldn't care if Nintendo lowered their fee from $3 to $2 if Sony and Microsoft still only charged $1.

DjunknownApril 10, 2003

hmmm...maybe that's why we haven't seen some titles that go elsewhere. Its a good start, and like Ian said, its these little things that keep them down, but now it seems they might make some amends.

Perfect CellApril 10, 2003

Something Nintendo needed to do from the getgo... they make more money per Gamecube than Sony does per PS2 or Microsoft per Xbox, so it was fair for them to pass some of those savings to Third Parties... Hopefully this means more Support! You listening Rockstar, Namco, ect.

nolimit19April 10, 2003

well its the little things that hold them from number 1, but its also the little things that make them all their money. i think nintendo should just sacrafice profits for some mean ass market share though. i mean....at this point, they are already in 3rd place now.....right....at least really close to 3rd at best. just under price the competiters at every chance they have....at least thats what i say. lower the price of the gc to 75 bucks, and then we wil see who wins the console wars.

The DocApril 10, 2003

First of all, I believe that Nintendo should have taken this approach when the GameCube was first lanched, however better late then never. Nintendo fans may finally start to see more GameCube titles coming their way, and cuting royalty fees may very well be just what the doctor ordered for Nintedo to cure their ailing relationship with the third party software companys. I am glad that Nintendo did this and hearing this news should entice more people to buy a GCN since they would have strengthened their third party support.

The Doc

Currently playing: Legand of Zelda: The Wind Waker

ThePermApril 13, 2003

the advantage of bieng first place is your game sales will go up. Nintendo is in thrid place yet still hs high sales...if they were able to be first place they would have ebormous sales....nintendo has only not been first place for a short time and everyone makes it out to be inpossible to return to first but in the psx generation they switched back and forth repeatedly...when ps2 was released....nitnendo was number one marketshare wise...it just plumetted substatially ther next week..... ( -_-)

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