Nintendo's approach to console and game pricing
During a recent quarterly meeting with investors, Nintendo management shared details about the principles that guide the company when pricing its devices and video games. Company President Shuntaro Furukawa, as well as top executives Ko Shiota, Shinya Takahashi, and Yusuke Beppu, shared their thoughts.
The main emphasis was placed on the words of Shuntaro Furukawa. According to him, when it comes to hardware, the final price depends on a vast number of factors — particularly the cost of components supplied by the company's numerous partners worldwide.
Key pricing factors
Nintendo strives to balance the company's financial stability with the affordability of devices for a broad audience of players:
- Production costs: the cost of components, development, and logistics directly impacts console pricing;
- Value to the user: the company evaluates how unique of a gaming experience the product provides;
- Scale of projects: game prices are determined by the level of resources invested, the volume of content, and the duration of development.
Thus, Nintendo attempts to deliver quality innovations while keeping the cost of devices and games as attractive as possible for both family and hardcore audiences.
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