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Eurogamer : Why Nintendo Switch games are ending up more expensive

EmiPrime

Member
One of my jobs a long time ago was to manage the ordering of Nintendo cartridges for a big publisher, which at the time was N64 and Gameboy Color. The cost of the cartridge is not the whole story at all and I doubt anything has really changed.

When you order the carts they are made in Japan, I'm assuming the same is true for the Switch. Which means you have to pay for shipping of those carts from Japan to the US/Europe. BUT, you have to use the shipping company Nintendo owns and their prices are not competitive. Same goes for the printed parts, manuals, boxes. You have to use Nintendo's printer and they are not cheap. Also factor in that there is a minimum order you have to buy from Nintendo and you see all the costs add up ontop of the cartridge price at BOM level so tax ext are added onto that. Also the carts sizes are fixed so if your game is just over the steps in cart size you could be buying the next biggest cart you need with wasted space. Disc games are fixed no matter how much space you need unless you get a multi disc title.

Compared to the other format holders, they provide you with a regional disc duplication plant and you might be able to choose your own disc replicator. Like I said, this was a long time ago and things might have changed but Nintendo's gonna Nintendo and rinse profit out of every step of the process which means the consumer is eventually picking up the tab.

Keeping parity with retail costs is just a bullshit excuse.

All my 3DS games say made in Japan. All my Nintendo published Wii U games say made in Japan, third party games say assembled in Germany (bit unclear that one). All Switch games that I've seen say made in Japan.

Your information probably still holds mostly true.
 

jonno394

Member
Is it though? How many manufacturing plants are there for Switch carts right now? Especially small orders. The thing about having many different places to print discs is true and makes a big difference

Yes, but there's still potential for a lot of the stuff to be outdated (ie forced printers, forced shipping companies etc)
 

dyergram

Member
I've come to expect Nintendo games to be overpriced I would of bought more wiiu games if they weren't overpriced in fact I think I only ended up buying pikmin and wonderful 101 due to pricing errors hopefully Nintendo can learn from Sony (who often have absurdly overpriced digital games) and offer discount on their store.
 

evanmisha

Member
this was obvious and I'm surprised there were so many arguments that it wasn't likely. Especially the puyo puyo thing. That is just reaching for an excuse and ignoring the vast evidence across all platforms that digital tends to cost the same as MSRP of physical.

I'm sure partly that's to avoid pissing off retailers, but also I expect publishers are happy at the relatively higher return they get which is a meaningful alternative to putting up prices at retail


The missing piece of the jigsaw is just how much more expensive the cards are. They don't have to be $10 more to put the price up by $10. Assuming retail/wholesale are working on percentage markups, a $3-5 increase in cost price by Nintendo could easily result in a $10 retail price bump.

I can almost buy hand-waving Puyo Puyo Tetris as an outlier, but Has Been Heroes too? Seems like a pretty useless guideline on Nintendo's part if 2 of the first 9 games released for the Switch have some degree of price disparity on the basis of physical vs digital. Awful early to be breaking that rule not once but twice.

Everyone knows costs are lower on the digital side yet price is kept matched to physical to placate retailers. No one is arguing to the contrary as far as I can see. The issue is that this has long been considered a status quo upheld by publishers and not by some mandate handed down as part of the platform.
 
Uhh... but Puyo Puyo Tetris is perfect game

It's hard to tell if this is an issue or not. RiME because it is blatantly obvious they are charging more. With PuyoPuyo Tetris, it is hard to tell if they are charging more for physical because it is more expensive or because they are including other things like a keychain with it (making a glorified 'Special Edition' of the game). Also, PuyoPuyo Tetris digital game is the same price as the other versions.

Maybe this is a one-time deal with RiME and we are making it a bigger issue than it is. Maybe it is a foreshadowing of things to come. Only time will tell.
 
Are the carts that expensive or is Nintendo charging high licensing fees?

Mass producing the carts is definitely more expensive than bluray but we don't know exactly how much. Just think about how manufacturing works. The Switch cart is basically proprietary media, there won't be as many factories that produce them compared to those producing bluray, and they would certainly charge more knowing that there aren't a lot of competitions just yet. Also, since the Switch's installed bases are still very small, publisher won't risk ordering a large batch of the game at once and having their game collecting dust on the shelf, but instead they order several small batches which can drive up the cost.
 
We've heard this policy is why some smaller publishers and developers are going with the eShop only for their Nintendo Switch games. To release a physical version would mean factoring in the cost of manufacturing a cart, bumping up the price accordingly then price-matching the digital version.

THAT IS NOT OK

When your physical model is so fucked up it affect the digital prices , that's not ok.

Now the same is true on PS4 and xbone , but at least , the market is volatile enough that the price go down quite fast
 

CDX

Member
Switch GameCards DO NOT COST $10 more than Bluray discs. Sure they may cost a bit more, but not $10 more.

Has Been Heroes is $19 across ALL platforms at retail, Bluray discs, and even the expensive Switch Cartridges are still only $19.

According to BoI devs cost of manufacturing of physical copies + manual = 4 dollars.

Right.
For Binding of Isaac. IIRC That $4 included, in addition to the cartridge cost, and 20 page full color manual as you mentioned.

It also included 2 sheets of stickers, and an extra alternative boxart cover.

Well, we've heard that Nintendo's policy is that Switch eShop games should cost the same as their physical versions, in a bid to keep bricks and mortar shops on-side.

...

We've heard this policy is why some smaller publishers and developers are going with the eShop only for their Nintendo Switch games. To release a physical version would mean factoring in the cost of manufacturing a cart, bumping up the price accordingly then price-matching the digital version.
How is Puyo Puyo Tetris charging a cheaper price in the US? Does NoA have a different policy.

Maybe that's just NoE's policy, because in the US Puyo Puyo Tetris is cheaper on the eShop.

$30 digitally, same price as on the PS4.

$40 retail, with physical bonus' (keychains)
 

z0m3le

Banned
They should just drop the physical release of the game on Switch if it's causing a $10 increase in price, people defending this really need to really ask why the developer thinks Switch owners should have to pay a premium price. This is just a bad idea for a publisher/developer, especially with their first game and it really doesn't matter if the cost of the card was $20 bucks and they are eating half of it, they should just drop the physical copy, or offer a special physical edition for maybe $50 with some physical trinket for those who want a physical release and put out only a digital version along side it for price parity.

What the publisher is doing, looks like price gouging a new market based on low competition for their release.
 
Mass producing the carts is definitely more expensive than bluray but we don't know exactly how much. Just think about how manufacturing works. The Switch cart is basically proprietary media, there won't be as many factories that produce them compared to those producing bluray, and they would certainly charge more knowing that there aren't a lot of competitions just yet. Also, since the Switch's installed bases are still very small, publisher won't risk ordering a large batch of the game at once and having their game collecting dust on the shelf, but instead they order several small batches which can drive up the cost.

This sounds exactly like the issue during the N64 days.
 

guybrushfreeman

Unconfirmed Member
Switch GameCards DO NOT COST $10 more than Bluray discs. Sure they may cost a bit more, but not $10 more.


For Binding of Isaac. IIRC That $4 included, in addition to the cartridge cost, and 20 page full color manual as you mentioned.

It also included 2 sheets of stickers, and an extra alternative boxart cover.


How is Puyo Puyo Tetris charging a cheaper price in the US? Does NoA have a different policy.

Maybe that's just NoE's policy, because in the US Puyo Puyo Tetris is cheaper on the eShop.

$30 digitally, same price as on the PS4.

$40 retail, with physical bonus' (keychains)

A $4 manufacturing cost is huge though. After adding shipping, storing and paying for overruns (the risk of unsold copies) I can see how a small run could reach $10 extra (or close enough for rounding via the retailer anyway). Keep in mind BOI would even be the lowest possible price per cart because the game is so small. Other titles will be even more than that on bigger carts
 

LewieP

Member
Sorry, what I meant was that the cost of porting the game isn't what is putting the costs up, or keeping profits low (like in the case of the 3DS).

Yes. On Switch the increased costs could be avoided by going digital only. Or in cases where it is economically feasible they could mitigate the costs by getting a larger print run.
 

guybrushfreeman

Unconfirmed Member
Could the blame be put on the publisher? During Resident evil Revelations release Capcom sold the game for 50 dollars : http://gonintendo.com/stories/177878-capcom-explains-why-resident-evil-revelations-deserves-a-50-pri


Some people think some publishers are exaggerating the difference in cost betwwen blue ray and cardridge to try and make a profit.

It isn't really necessary to blame anyone. There are a number of factors from every party that play into every decision. In the end I think consumers don't like this practice no matter the reason behind it so you'll probably in general see publishers eating the extra cost but skipping low print runs on the Switch where possible
 

EvB

Member
Its all nonsense with Rime in any case, it'll be down £10 a week or so after launch, they'll just try and get day 1 buyers to pay more

I'd be surprised, it will have had a small print run , you won't see deep discounts on it 1 week after launch
 

Kneefoil

Member
I was wondering why Switch games were more expensive but I figured it might've been an early adopter tax. If the price increase really is because of the carts though, then I guess we'll see these prices for the whole lifetime of the Switch. :/
 

JaseC

gave away the keys to the kingdom.
He's a developer who posts on GAF.

I'm not entirely sure that's accurate as I went digging through his post history a few days ago since some in the other thread were placing more stock in his word versus Kenny's and the closest parallel to "I'm a developer" I could find is "I work in tech", which is rather vague and doesn't necessarily point to the video game industry specifically. It's distinctly possible if not probable that he was basing his comments on his experience elsewhere in the technology sector and isn't actually privy to Nintendo's cartridge pricing.
 

ramparter

Banned
They word this like its a Nintendo only thing, we all know this is why digital costs more than physical

If Rime was going to cost Switch owners £10 more because of the cost of cartridges, maybe they should have just gone digital only. Its seems crazy that digital buyers would be the ones to suffer just because they decided to make a physical version

Its all nonsense with Rime in any case, it'll be down £10 a week or so after launch, they'll just try and get day 1 buyers to pay more

The worst part is that retail prices may go down but digital will remain intact. This is the biggest shit with the digital = physical situation, it only applies never. They prevent physical from being lower than physical but the same doesn't apply for the other way around.
 

tebunker

Banned
It's hard to tell if this is an issue or not. RiME because it is blatantly obvious they are charging more. With PuyoPuyo Tetris, it is hard to tell if they are charging more for physical because it is more expensive or because they are including other things like a keychain with it (making a glorified 'Special Edition' of the game). Also, PuyoPuyo Tetris digital game is the same price as the other versions.

Maybe this is a one-time deal with RiME and we are making it a bigger issue than it is. Maybe it is a foreshadowing of things to come. Only time will tell.

See the bolded.

Again, I have said it before in other threads, but it is clear from the Devs/Publishers of RiME they are treating the Switch port as a wholly separate project with unique intrinsic costs. Because it kind of is.

The game wasn't developed or budgeted with Switch in mind initially. They are paying Tantalus to port it and we have no idea on those costs.

As well there is the additional cost to mfg and potential licensing differences with Nintendo.

What is clear is that they have a roi they want to hit & that caused the price to be higher. It is very simple business/accounting.

In almost(read every) other case the costs are either rolled in to initial budgets and forecasts or they marry additional costs to the project. Just different ways of doing things. See Lego Worlds for example. We aren't seeing word of that being more expensive than Ps4 or Xboxone. That will be the litmus for larger pubs.

I think people are way over reacting to one data point. Why? BC Switch articles drive traffic. Period.

It will be interesting to see how this plays out eventually, but I have a feeling the smarter companies budget or marrying budgets and projections for switch titles going forward to be able to achieve return on development.
 

Bazry

Member
I'd be surprised, it will have had a small print run , you won't see deep discounts on it 1 week after launch

Maybe not physical but digitally we've seen prices drop quickly after release in 'sales,' pretty sure some of the Capcom stuff on PS4 like the Marvel Alliance and Dead Rising games have down quickly after being put up initially for more than they should
 

Damaniel

Banned
Captive audience. When your system only has 4 physical games and about as many unique digital ones, and very little coming out on the physical front for months, people will pay more to get anything new to play, and developers know this.
 

Ridley327

Member
Could the blame be put on the publisher? During Resident evil Revelations release Capcom sold the game for 50 dollars : http://gonintendo.com/stories/177878-capcom-explains-why-resident-evil-revelations-deserves-a-50-pri


Some people think some publishers are exaggerating the difference in cost betwwen blue ray and cardridge to try and make a profit.

Capcom actually conceded to the market and it launched at $40. Not to say that there weren't eventually $50 games on the 3DS (thanks, Atlus), but RE:Rev was an example of consumers winning out.
 

cw_sasuke

If all DLC came tied to $13 figurines, I'd consider all DLC to be free
because its a new system with limited software options and publishers can get away with it for now ? Isnt that the whole point why a game like Bomberman can be sold at full price ?
 
Captive audience. When your system only has 4 physical games and about as many unique digital ones, and very little coming out on the physical front for months, people will pay more to get anything new to play, and developers know this.

Or not pay at all due to the high pricing.
 

Aonuma

Member
Yeah, I'm calling shenanigans. Shovel Knight didn't have any issues launching at the same prices as on other platforms. If developers want to try and charge more for Switch versions of multi-platform games early on here then they can enjoy their lack of sales until they smarten the hell up.
 

borghe

Loves the Greater Toronto Area
I think the one thing that can be agreed upon.. is that this is third party shenanigans and nothing more..

I know a lot of people throwing around cartridge pricing.. except a) we don't know exactly what that is and b) we know nothing about Nintendo's licensing fees, and c) obviously as has been pointed out.. digital pricing is still up there, even WITH today's day and age of selling digital codes at b&m stores.

I think others have nailed it.. with limited games available and a hot new indie coming out.. increasing cost by $10 seems like a good move. And if you don't like it, more than likely the loser will be Nintendo, NOT the indie, as you'll just grab it on PS4.

So we're not punishing the indie for their bad decisions, we are punishing Nintendo. Seems kind of fucked up.
 

jroc74

Phone reception is more important to me than human rights
Well, we've heard that Nintendo's policy is that Switch eShop games should cost the same as their physical versions, in a bid to keep bricks and mortar shops on-side. A shop such as GAME, for example, is unlikely to go all in on a Switch game if you can download it for half the price instead.

Yup, I remember reading this in an Iwata quote awhile back.

Some ppl look at it as keeping the value of the game up. Personally I dont like this policy.
 

KingSnake

The Birthday Skeleton
Well, we've heard that Nintendo's policy is that Switch eShop games should cost the same as their physical versions, in a bid to keep bricks and mortar shops on-side.

If this is indeed enforced by Nintendo and not decided by the developer then this policy is bullshit and short-sighted. And I think that some games would rather benefit from having only a digital version if that's the case.
 

Oregano

Member
Capcom actually conceded to the market and it launched at $40. Not to say that there weren't eventually $50 games on the 3DS (thanks, Atlus), but RE:Rev was an example of consumers winning out.

Also some Vita games like Uncharted were $50 but I don't think that lasted too long.
 

Bowl0l

Member
Capcom actually conceded to the market and it launched at $40. Not to say that there weren't eventually $50 games on the 3DS (thanks, Atlus), but RE:Rev was an example of consumers winning out.
Luckily i am a patient person that wait Atlus games to drop to $20.
 

Weevilone

Member
I don't see myself buying very much Switch software so I'm not too worried about it. I'll pick up mostly just the premium first party titles, likely no Wii U rehash. I'll grab unique indie titles, but anything cross platform I'll go elsewhere.
 
Also why not sell just a download-code at retail and make that version cheaper? Same profit for the publisher and the eShop games could cost the same as the download-only retail version.


Because then you can't resell the game. No used games for Switch. Which is what we (and retailers) don't want.
 
I'm not entirely sure that's accurate as I went digging through his post history a few days ago since some in the other thread were placing more stock in his word versus Kenny's and the closest parallel to "I'm a developer" I could find is "I work in tech", which is rather vague and doesn't necessarily point to the video game industry specifically. It's distinctly possible if not probable that he was basing his comments on his experience elsewhere in the technology sector and isn't actually privy to Nintendo's cartridge pricing.

He is
 

The_Lump

Banned
Artificially keeping physical retailers afloat is just BS. It's bordering on an unethical practice and has 'price fixing' written all over it.
 
Why would a smaller publisher even release a physical copy for a Switch game at this point in its life? Maybe if it takes off, but otherwise that's a huge gamble.
 

10k

Banned
Yeah the costs for carts is likely in the dollars while the cost of discs is in the cents.

Perhaps in time after launch when many units are out there the price of will go down.

Keep in mind this isn't like N64 cart prices, it's closer to 3DS prices.
 
Some games a more expensive (Rime is getting a physical release on Switch)

But in general, console games are $60; am I missing something here?
 
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