Why Nintendo Is So Expensive | So Expensive | Business Insider

IbizaPocholo

NeoGAFs Kent Brockman


Nintendo has been a video game giant since the early 1980s. For about 15 years, big-budget Nintendo games cost $60. In fact, that was the standard game price across the industry. Meanwhile, Nintendo's consoles are generally cheaper than most competing gaming systems, such as the Xbox and the PlayStation. Its consoles have never cost more than $300…until now.

At $450, the Switch 2 is Nintendo's priciest console. And Mario Kart World is priced at $80 — the most expensive base game Nintendo has ever released. Some fans are outraged by the price increase. But some industry analysts say that it's time for games to be more expensive, considering the rising costs of game development and inflation, among other factors.

So, why is Nintendo suddenly so expensive? And what does an $80 game mean for Nintendo and the entire video game industry?

00:00 - Intro
01:13 - Video Game Crash
02:17 - Nintendo's Rise
04:22 - Dedicated Fan Base
05:45 - Sega vs. Nintendo
07:30- The Nintendo Niche
08:57 - Exclusive Games
11:44 - Nintendo's Console Strategy
13:26 - Fan Reaction
17:10 - Is $80 Too Expensive?
19:25 - Will The Switch 2 Succeed?
22:42 - Credits

Nintendo's Price Increases

  • Nintendo has announced the price of its new console, the Switch 2, at $450, marking it as the most expensive console release from the company to date.
  • Additionally, the new game Mario Kart World is priced at $80, which is the highest base price for a Nintendo game ever released.
  • Historically, video games have remained around the $60 price point for over a decade, with the last Mario Kart title also costing this amount.
  • Industry experts suggest that this price adjustment is overdue, as gaming prices have not kept pace with inflation or the rising costs of game development.
  • The video game industry generated over $180 billion in 2024, significantly surpassing the global film industry, indicating a robust market potential.
  • The discussion surrounding the $80 game price reflects a broader industry trend, as many believe that the price of games has not adjusted adequately to reflect current development costs.

The Historical Context of Video Game Pricing

  • In the early 1980s, the video game industry faced a major collapse due to a saturation of low-quality games, leading to consumer distrust and a perception of video games as a passing fad.
  • Nintendo entered the U.S. market during this tumultuous time and worked to reestablish the value of video games by marketing their console as an entertainment device rather than just a toy.
  • Nintendo implemented strict quality controls, limiting third-party publishers to five games per year, which encouraged a focus on quality and helped restore consumer trust.
  • The release of the Nintendo Entertainment System (NES) and the iconic Super Mario Bros. game in 1985 played a significant role in reviving the industry and establishing Nintendo's reputation for quality.
  • Nintendo's strategy included creating in-house games and characters, leading to the development of beloved franchises like Mario and Pokémon, which helped cultivate a loyal fanbase.

Nintendo's Unique Market Position

  • Nintendo's approach to exclusivity has allowed it to maintain high prices for its games, as they do not release titles on competing platforms like Steam or Xbox.
  • This strategy has resulted in titles like Mario Kart 8 Deluxe retaining their full price even years after release, contrasting with the frequent sales seen in other gaming ecosystems.
  • Nintendo has positioned itself as a premium brand, focusing on delivering high-quality gaming experiences that justify their pricing strategy.
  • The company's commitment to quality and exclusivity has helped it sustain a loyal fanbase that is willing to pay higher prices for its games and consoles.
  • Nintendo's marketing emphasizes the unique and playful nature of its products, differentiating itself from competitors like Xbox and PlayStation that cater to different demographics.

Consumer Reactions to Price Changes

  • The announcement of $80 games has sparked mixed reactions among consumers, with some expressing concern about affordability, especially in the current economic climate.
  • During a live stream reaction, fans shared their shock at the new pricing, indicating that the higher cost could deter casual gamers or families from purchasing new titles.
  • Some fans have found solace in bundle deals, such as a $500 package that includes Mario Kart World, which offers a slight discount compared to buying the console and game separately.
  • Critics of the pricing strategy point to past instances where Nintendo faced backlash for high launch prices, such as with the 3DS, which saw a significant price drop shortly after release.
  • Despite concerns over pricing, many fans remain loyal to Nintendo and are willing to pre-order the new console, indicating strong brand loyalty and anticipation for new releases.

Economic Factors Influencing Pricing

  • Some analysts speculate that Nintendo's price increases may be a response to anticipated tariffs and rising manufacturing costs associated with producing hardware in China.
  • While Nintendo's president denied that tariffs influenced pricing, the concern over potential future price increases remains prevalent among consumers.
  • The video game industry has seen substantial increases in development costs, with some franchises like Call of Duty experiencing budgets that have skyrocketed in recent years.
  • The rising costs of game development have led to discussions about the necessity of adjusting game prices to ensure profitability and sustain the industry.
  • As other companies begin to follow Nintendo's lead in raising prices, the industry may be facing a significant shift in consumer expectations regarding game pricing.

Cultural Impact and Future Considerations

  • Nintendo's cultural hold on its fanbase is strong, bolstered by nostalgia and the appeal of its iconic characters, which attract both younger and older audiences.
  • The company has successfully marketed its products to appeal to a wide demographic, making gaming more accessible and socially accepted among adults.
  • Despite concerns over pricing, the anticipation for the Switch 2 indicates that consumers still value the unique experiences Nintendo offers.
  • Market analysts predict that the Switch 2 will sell well, but caution that it may not reach the same heights as the original Switch due to its higher price point.
  • The future of Nintendo's pricing strategy may depend on the quality and appeal of upcoming software releases, which will be crucial in attracting a broader audience beyond core fans.
 
They've already said it, it's a brand perception thing, they can't lower the prices and expect people to keep paying premium all the time and they'd know prices will be lower later just like with any Ubisoft game.

In exchange the put their best to deliver fully functional sand high quality experiences from day one, and even when they do DLC they're clearly not just cut content but enhanced one.

That's why I don't get why people say Nintendo is the worst of all the big publishers, the way they drive business and deliver to customers is top notch in my opinion.
 
So expensive, so expensive.

Sounds like my grandma when she used to complain about something. Had to say it twice for added effect and drama. 😋

$80 is still fucking stupid, Ubisoft AAAA energy.
 
They keep saying that Nintendo is expensive whilst Demons Souls Remake and Miles Morales from 2020 alongside with most of Sony's first party catalogue still have their original MSRP.
 
I didn't have issue with price for actual Switch 2 system.

I had bigger issue with PS5pro price since in Canada it costs $950 and you need pay extra $100 to play physical copy of your games.
 
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I dont disagree, but nintendo selling a welcome tour for $10 is inexcusable
It may not be to your liking. But people have worked on it, developed it, and Nintendo put money on it. They see the need to turn a profit on that, that's a business decision.
 
you must pay for best gameplays i will pay all the monies wife stop me from get more buuuuuut i still get mario kart cyberpunk totk upgrade best open worlds ever confirmed tomorow fast annnd fzerogx

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Yes they are a little expensive but there are tons of alternatives you can find that destroy it for a very similar price. Plus you get the benefits of PC/Linux/Bazzite on the handheld PC's.

They offer a solid product even if I think they get smoked in the games department. They serve their audience. Expensive but the market will bare it, for now.
 
They keep saying that Nintendo is expensive whilst Demons Souls Remake and Miles Morales from 2020 alongside with most of Sony's first party catalogue still have their original MSRP.
Lol, you can buy any Sony first party for half price at least once a month, Mario Odyssey still full price 8 years after its release and you ll get 10%off If you get luck, what are you talking about ?

Do you shill really have no shame ?

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and i ll not even talk about development cost.
 
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The system price is fine, I just hate how 7 or 8 year old games are still 50/60 bucks.

They're charging 70 dollars for breath of the wild on switch 2. A game that originally launched on the wii u. Nintendo are the most anti-consumer company in the industry currently and they're getting worse tbh. There game prices r insanity and anti-consumer.
 
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Lol, you can buy any Sony first party for half price at least once a month, Mario Odyssey still full price 8 years after its release and you ll get 10%off If you get luck, what are you talking about ?

Do you shill really have no shame ?

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and i ll not even talk about development cost.
Oh yeah the Days of Play sale price.

Can you tell me what's the price of the game when is not on sale? Thank you.

And Mario odyssey has had many sales before.
 
Lol, you can buy any Sony first party for half price at least once a month, Mario Odyssey still full price 8 years after its release and you ll get 10%off If you get luck, what are you talking about ?

Do you shill really have no shame ?

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and i ll not even talk about development cost.

To be fair, the filthy Snoy gaijin shit remake should never have costed nearly as much as Odyssey.
 
Oh yeah the Days of Play sale price.

Can you tell me what's the price of the game when is not on sale? Thank you.

And Mario odyssey has had many sales before.

Gamestop, amazon, best buy, walmart, etc have demon souls remake half off the original price of 70 dollars and that's for a physical copy.
 
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Gamestop, amazon, walmart, etc have the game half off the original price of 70 dollars and that's for a physical copy.
That's due to the days of play sale, I'm talking about MSRP or launch price, the normal price of the game when is not on sale is still $70 at all retailers, and that's the case with most Sony first party games.
 
I wish there was a middle ground that these companies would do. I kinda appreciate having games not drop in price instantly. It makes buying a game on day one, and seeing it be 50% within a couple months is frustrating. However, after a few years, I don't see a problem with having games lower in price a little. It's kinda out of whack to have a game in a series with one entry that's 5+ years old be the same price as a game that just came out.
 
It's the game prices that are taking the piss! Nintendo are still selling games that are almost 10 years old at the same price as brand new games!
 
They are profit oriented so they are always as expensive as they can be.
If people keep buying they will keep raising their prices to find the limit.
It's not exactly rocket science....
 
It's the game prices that are taking the piss! Nintendo are still selling games that are almost 10 years old at the same price as brand new games!
Yup. Even used ones. I bought my kid BotW used for like 50 bucks so he can play the upgrade. I was one of the 4 people who bought it on WiiU because I resisted the Switch for like 6 months so I am paying 50 bucks for access to a game I bought 8 years ago for 60.

The only saving grace is the Costco/Sams club 10% discounted eShop credits. Though they have that for Sony too.
 

No such thing as expensive it's all subjective opinions based on what people feel things should cost. The main issue these days is people know the cost of everything but the value of nothing. And if you take the cost of the Switch 2 for example and break it down over say eight years of ownership it's a pretty good deal.

But well done for creating yet another faux outrage Switch 2 thread...
 
The value of the console itself is purley up to the costomer. If you think the tech is worth that price point then go for it.
I didn't think the PS5 pro was worth the said asking price but people still baught it.

However it's the companys genral attitude, lazyness and charging extra's that I have an issue with.

-Games are way over priced to worth.
£75 for any game is silly. Gaming is ment to be a leisurely thing and primally aimed for children. Notably so in Nintendos case
-Having to purchase and upgrade patch for games you already own.
60gig PS3. Pop in most games and it ran with a slight increese in proformance. All for free. People defending a charge for this is mental.
-Even older games are priced more just to play on this new console.
Game gets released at price. Time goes on and the value goes down. New console releases and the game price goes back up for some reason. The game is exactly the same.
-The whole Pal world thing was shocking when they released their patent.
Completely mental and indefensible.
-They are way to sue happy.
Way to precious over stuff. Paywalling their music behind an app. Chill out.
-Their general consoles have lost their soul. They had a genral fun element to them. It being able to strech Mario's face on the N64, Gamecube music intro's or the Wii shopping music.
Now it's just static with no charecter.
-The cartridges being literally pointless bits of plastic. Basically removing the ability to shair with friends.
PS4 mocked Xbox with this and everybody loved it. Now it's fine for some reason?
-User agreement saying they can deactivate it at any moment because you don't own the console. You own a licence to console and games.
Reenforcing the argument that if buying somthing isn't owning it. Then pirating isn't stealing.
-Hate that C button. Dedicated Discord button that you have to pay for at 18 fps.

It's not about hating certain consoles. It's about not getting short changed in playing games on the whole.
As time goes on. You are getting less whilst paying more. It's exactly why we have mirco transactions, day one DLC etc

I don't want to be that guy who tells you how to spend your money. But if these sort of practices keep going. Then the costomer market is going to get smaller as time goes on.
In turn. Companies will increese prices to keep up or gaming on the whole will downsize. Which means less for those who defend it.
It has to keep a balance and imo. Nintendo has taken a large step over the line.
Gaming should not be your main focus on how you spend your extra money. It should be a down time/ rainy day thing.
Just the other day. A poster said he spent $1,500 on this release.

I pretty much only spend money on myself for gaming and 4K blu rays. I make good money, but I still drive a 25 year old car, have an 8 year old phone, don't drink or go out often.

Edit: I also have a bunch of kids and bought stuff so we can all play together.
This isn't fine.
 
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I had a look at it too. But they also forget important things, sure the games were also expensive back then, but far fewer copies were sold. And they also don't mention that games are much more monetized these days(season passes and dlcs.)
 
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