Ponn01 said:
You're comparison does not make sense at all. When Nintendo had no competition they sold games at 60 - 70 bucks a pop because they could. When they got competition their prices lowered. I really can't see how you are coming to if people buy more anime then prices will go down, I don't see how that can effect the industry in any way except tell them that their current prices are ok. And you haven't shown anything to back up that statement whatsoever. I think everyone can agree from a consumer standpoint a season box set of an anime series priced reasonable will be alot more attractive then individual discs at their current price/episode ratio. You can also be assured more sales, more penetration of the market (box sets that are reasonably priced look better on retail shelves) and more readily available too people more willing to take a chance on a series at that point if they can watch them all. If you really like video game comparisons though try the Neo Geo, way overpriced system and games because they thought it was a niche market, but by keeping it that way and never lowering prices or meeting what the consumer wanted they doomed themselves to that niche market.
No competition? Nintendo had TONS of competition. This was the days of 16-bit. Sega was a VERY big threat to Nintendo. The fierce competition between those two companies (and to a lesser extent, NEC) didn't keep game prices down. The example I cited was earlier was Thunderforce III (Genesis), which cost $70. Final Fantasy III (SNES), if I remember correctly, was $80. Phantasy Star IV (Genesis) was $90!
Of course, those games (shooters and RPGs) are from niche genres (and RPGs were FAR more niche back then). They cost more than your standard 16-bit platformer to offset the reality that they weren't going to sell as many copies as Sonic the Hedgehog 2 (which "only" ran between $50-$60, if I recall).
You don't see how more people buying something can cause prices to fall? I'll try to explain:
Let's say you have two companies, Company A and Company B, each with a product to sell. These products cost $5 to for the companies to make. Let's also assume for the sake of this example that each company wants to make a profit of $100 dollars by selling their product.
Company A has a product (we'll call it Product A) that EVERYONE wants. Lots of mass market appeal. It knows that it will sell a ton of Product A. So they set Product A's retail price at $7. Since it costs them $5 to create Product A, they're not seeing much of a profit for each one sold...only $2. However, once Product A is on store shelves, they instantly sell 50 of them. With $2 profit each, they've already hit their $100 goal.
Company B has a product (Product B, natch) that is a niche product. There's a small group of people dying for it, but the bulk of the population doesn't even know it exists. Company B has done studies and they're aware of their market's small size. In fact, they estimate that they'll only sell about 10 of their products. So in order for them to make the same profit as Company A, they must price their product at $15. That gives them a $10 profit on the 10 copies that they sell (there's the $100 profit).
Now, Company B doesn't necessarily WANT to price its product $8 more than Company A, but it HAS to in order to make the necessary profit. Company A's market research has concluded that it will only sell 10 of its product, so the company does what it has to do in order to reach it's goal.
Over time, though, Company B's product may become more popular. The 10 people who bought Product B love it and begin telling others to buy it. With sales of Product B increasing, Company B has two choices--keep the price high and continue making a large profit or steadily lower the price to benefit the consumer.
Keeping the price the same may seem like a smart, short term approach for the company. They'll make a lot of money quickly. HOWEVER, by steadily lowering the price, Company B has a stronger potential to lure in even more consumers, who would like to try Product B (they've heard such good things about it, after all), but have been reluctant to because of the high cost.
Lowering the price is better for Company B in the long term since they will continue to draw in more customers while still making the same profit that they were initially. They can then continue making this same profit for years upon years.
Keeping the price the same will earn them lots of money at first, but that pool will soon dry up as they eventually run out of consumers willing to pay that high cost. After a few months, people stop buying and the money stops rolling in.
So a couple months profit versus years of steady profit. Even if the couple of months are more profitable, in the long run, the slow and steady profit wins this race. Does that mean that companies will always choice that path? Of course not. But it's the smart one. Consumer confidence is a valuable thing.
But as for fansubbers, I really have nothing against them, so again, don't feel as those I'm attacking you. Back when I was really into anime, I had plenty of bootleg VHS tapes. And yes, there's definitely "good" fansubbers and fansub fans out there (you sound like one of them) who stop once a show gets licenses. Still, there are still the "bad" fansubbers out there who don't follow those upspoken rules, and I can't blame anime companies for citing them as a reason for poor DVD sales.
Then, there's the reality that a percentage of people who have downloaded a series before it was licensed won't bother the purchase the legitimate series when it does get a U.S. release. "I downloaded this series a year ago. Why should I pay money for something that I've been watching for free for months?" That may not be you, but it's more than a few fansub watchers.
Of course, those two fansubber types aren't the only reasons for low DVD sales, but they ARE reasons. Completely writing them off because you happen to be one (albiet the "good" one) counts as rationalization.
Wow, I'm going off on plenty of anime rants today. You'd think I was a bigger fan of the stuff than I am.