With customers now conditioned not expect frequent hardware price drops will software follow?

[MysticGon]

Nintendo has something special in their ability to sell games at or near full price for the duration of that games entire print run and maintain stable sales.

It is opposite to the rest of the industry where discounts are common in the form of fire sales, complete edition bundles or depreciation.

There are different schemes to extract more money from the customers that should be familiar with anyone following industry events.

Can publishers change course and try to maintain a higher average selling price or is the current model baked into retailer/customer expectations at this point?

 

[BassForever]

Far too much money is made on impulsive digital games during sales for publishers to start trying to mimic the Nintendo model. This is especially true with gamepass in the equation and even Sony's PS+ essentials tier. You're more likely to see the msrb of full price games go to $80 or $90 so they can do the JCPenny strategy of "50% off" down to $40 or $45 before they let games perpetually sit at $70.

 

[ArkhamFantasy]

I dont think so, if anything i think F2P will start becoming the norm for AAA publishers, up front costs are arguably just a barrier towards their MTX.

Nintendo is a special case because their games are what are attracting most people to the system, they dont need to discount Zelda so it fan compete with Mario for example.

 

[Mekanos]

It’s possible depending on how the global economy shakes out in the next few years, but I imagine digital sales are still extremely lucrative since publishers get more of the take than a physical sale. When games all start selling for 70 they will likely weigh how much sales change (if at all) before deciding what discounts look like going forward.

I don’t think most publishers will be as rigid as Nintendo though. Nintendo’s draw is their software and it’s always in high demand.

 

[epicene101]

One thing that is often overlooked ( I don’t know why) is the general resale value of 1st party Nintendo games. That’s one of the other reasons I buy their games at or near full price without much worry. If I don’t like it and/or need some quick $, I’m practically guaranteed to make a good to decent buck, even years later. It’s a sort of secure feeling that comes with that lol.

That isn’t the case for most of the industry unfortunately. So I don’t see them going down Nintendo’s path. At least not a huge wave of the industry in the immediate future.

Edit: I’m realizing this question is kinda of tricky lol. I do think we will see less discounting in general, but it won’t be on Nintendo’s level. They seem to be going on a (even more) value based path. If some in the industry want to change, they need to start this generation imo. It might be too late.

 

[DCSales]

No. The exact opposite is true.

Outside of Nintendo first party releases, pretty much everyone price-slashes their games in a matter of months if not weeks after launch and consumers know this.

With day-1 RRPs going up to $70/€80? You're only going to see more and more people turn to waiting for the price slash or sticking with subscription services like Game Pass.

 

[J.T.]

I don't think this will be the case simply because the software landscape is so much more competitive. A system remains relevant the entirety of a generation as it is the device you need to play the games coming out each year. New software releases on the other hand can be forgotten or made unattractive (at full price) within a month or two as consumers move on to the next big game. So the only way to get additional sales ends up being by slashing prices and being part of sales.

Nintendo games and evergreens like GTA or Call of Duty being the exceptions to this to some degree.

 

[storres]

SIE is already following that path. The others will follow.

 

[Jimmy Joe]

How does the speed at which big release games drop in price compared to that same speed from 4 or 5 years ago?

 

[GaiusBaltar25]

Since Sony has already started doing this, I'm assuming other publishers like Take Two will eventually make similar adjustments. However, I don't think any publisher will ever be as effective as Nintendo with this approach.

 

[Mekanos]

How does the speed at which big release games drop in price compared to that same speed from 4 or 5 years ago?

I feel like it's about the same, maybe they drop a little less quickly these days. Some companies are more trigger happy than others in this regard.

 

[J.T.]

I feel like it's about the same, maybe they drop a little less quickly these days. Some companies are more trigger happy than others in this regard.

I remember at one point it was almost like a joke how fast Ubisoft dropped the prices on their games.

 

[allan-bh]

There isn't demand for sustained sales at higher prices outside of few cases.

Nintendo manage to do this because they're huge dominant in their own systems.

 

[Sky2High]

No. The exact opposite is true.

Outside of Nintendo first party releases, pretty much everyone price-slashes their games in a matter of months if not weeks after launch and consumers know this.

With day-1 RRPs going up to $70/€80? You're only going to see more and more people turn to waiting for the price slash or sticking with subscription services like Game Pass.

I don't think this will be the case simply because the software landscape is so much more competitive. A system remains relevant the entirety of a generation as it is the device you need to play the games coming out each year. New software releases on the other hand can be forgotten or made unattractive (at full price) within a month or two as consumers move on to the next big game. So the only way to get additional sales ends up being by slashing prices and being part of sales.

Nintendo games and evergreens like GTA or Call of Duty being the exceptions to this to some degree.

And to add to these, the reason why Nintendo games tend to maintain their value is because customers tend to hold onto their games. In contrast, for FPS Series ABC Sequel 123, they'll play through the game in a weekend and sell it back as the next title will be out next year. This compounds the competition as you're fighting with the second hand market (though I can imagine digital purchases are mitigating this issue). On the digital front, people have been conditioned by Steam sales to wait for a significant price discount over buying it day 1. Nintendo will make you wait and wait and wait and wait for a $10 discount for Breath of the Wild.

 

[theprodigy]

And to add to these, the reason why Nintendo games tend to maintain their value is because customers tend to hold onto their games. In contrast, for FPS Series ABC Sequel 123, they'll play through the game in a weekend and sell it back as the next title will be out next year. This compounds the competition as you're fighting with the second hand market (though I can imagine digital purchases are mitigating this issue). On the digital front, people have been conditioned by Steam sales to wait for a significant price discount over buying it day 1. Nintendo will make you wait and wait and wait and wait for a $10 discount for Breath of the Wild.

Hey now, it's a $20 discount for Breath of the Wild!

 

[fiendcode]

Sony's trying, they've adopted a Nintendo-like MSRP holding strategy for 1st party games starting from PS5 launch. It's had mixed results so far, launches are getting even bigger but consistent catalog sales look like they're becoming dependent on getting hardware bundles or a megahit HBO show.

 

[tentacle-tropes]

I think it way to late to change consumer spending habits from either the publisher or consumer at this point in time.

Nintendo can do it because they have doggedly stayed to that ideal for decades now. And, they have trained consumers on that fact. Only a few games can match that philosophy & even then they still see price cuts down the line somewhere.

 

[Gotdatmoney]

I think as the frequency of AAA releases slows you'll see games hold their prices longer. But no one is going to reach Nintendo levels of hold. But they don't need to either. The monetization strategy and IP value for most companies versus Nintendo is a lot different.

 

[Vena]

I feel like Steam Summer Sale has conditioned a generation+ of kids and gamers to wait for massive discounts.

 

[tentacle-tropes]

I feel like Steam Summer Sale has conditioned a generation+ of kids and gamers to wait for massive discounts.

I was scrolling r/Nintendo & saw a thread about Mar10 & what is essentially a thread complaining about Nintendo never discounting games. One even suggested the games be permanently dropped to 40/50 then with this discount be 25/20 because they were games from 2017. So, I can see it in action.

I think it that + publishers cratering their prices with flooded copies, multiple editions within a short time, & near annual releases didn’t help. Throw in the app stores & you’ve got a deadly concoction.

 

[hroerekr]

I think the subscription services will replace deep discounts in that moment where your game is not selling anymore and you need a cash boost.

Horizon 2 went that route instead of the price curve from the first.

 

[fiendcode]

I think the subscription services will replace deep discounts in that moment where your game is not selling anymore and you need a cash boost.

Horizon 2 went that route instead of the price curve from the first.

This is definitely part of Sony's strategy imo. They want their games to hold value as a later subscription incentive and they're probably willing to sacrifice catalog legs for that.

 

[Tokuiten]

No. Sony literally chose to go in the opposite direction this gen: Raise sw prices, because they know they're dropping quickly.

And let's give Nintendo credit where it's due: The reason why Nintendo can "get away" with stable sw pricing is that their games by and large are of high quality. That's what makes for a strong combination, fair price for fair quality.

 

[Mekanos]

I feel like Steam Summer Sale has conditioned a generation+ of kids and gamers to wait for massive discounts.

Heck not just summer, this spring everything and the kitchen sink is on sale on Steam.

Except From Software games