Nintendo Is the Wrong Publisher to Begin the $80+ Games Trend

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It appears that the most significant revelation from Nintendo‘s highly anticipated Switch 2 Direct was their decision to increase the price of their games to around $80, or possibly even $90. Following the conclusion of the Direct, Nintendo’s website was updated to confirm that the standard price for Mario Kart World will be $80 when it launches in June. In other regions, physical copies of the game have been listed at an equivalent of $90. Although it can be debated that game prices should rise as they have done, what makes this shift particularly challenging for consumers is that Nintendo is driving this change.

Over the past decade, Nintendo stands out among other video game publishers with an impressive track record of success. While competitors such as Ubisoft, Electronic Arts, Xbox, and PlayStation grapple with finding a suitable blend between single-player and live-service releases, Nintendo has thrived. For instance, they have sold more than 67 million copies of Mario Kart 8 Deluxe, approximately 47 million of Animal Crossing: New Horizons, and around 35 million of Super Smash Bros. Ultimate. These numbers are just a few examples from their extensive list of successful titles. Moreover, they have also sold more than 150 million combined units of the Switch, Switch OLED, and Switch Lite systems since its launch in 2017. By virtually every quantifiable measure, Nintendo has become the most successful video game company globally in recent years.

What’s truly remarkable about Nintendo’s accomplishments is their ability to deliver such impressive results using hardware and software that is somewhat outdated compared to competitors like PlayStation. While PlayStation has been pushing the boundaries of what its consoles can do, most recently with the PS5 Pro, this progress seems to have increased development costs significantly. Games such as “The Last of Us Part II,” “God of War Ragnarok,” and “Marvel’s Spider-Man 2” are estimated to have cost hundreds of millions of dollars to produce, meaning they need to sell millions of copies just to break even. However, Nintendo’s development costs for its first-party games are likely much lower than other AAA publishers due to the less advanced technology it employs.

Essentially, what this means is that throughout the Switch era, Nintendo has enjoyed exceptionally high profits from its video games. Selling a game over 60 million times would be financially beneficial for any company, but for Nintendo, it could mean even greater earnings. Given these circumstances, it seems extravagant of Nintendo to propose a $80 price tag for one of its future games.

The high cost of Nintendo games is hard to swallow, especially when they lack basic features that have been common in the gaming industry for years. For example, during their presentation today, Nintendo spent only five minutes discussing “GameChat”, a new feature on the upcoming Switch 2 that has been available on other platforms for almost two decades. Additionally, the demo of the Switch 2’s game streaming service looked poor in quality and unimpressive. It seems odd for Nintendo to promote these features of the Switch 2 and then ask for $80 or more for their games, which may create a disconnect with potential customers.

It’s clear that I have confidence the caliber of these games will remain exceptional, considering the current trend where numerous AAA games release in a broken state. However, just by looking at it, Mario Kart World doesn’t seem like a game that warrants a $80 price tag. To be fair, if Rockstar Games announced that Grand Theft Auto VI would cost $80, many wouldn’t think twice about it. This comparison might not be entirely fair, but it does highlight the fact that consumers are often ready to pay more for something that feels cutting-edge or top-notch.

It’s possible that the $80 price tag for “Mario Kart World” could just be an exceptional case by Nintendo and not a permanent change. In contrast, “Donkey Kong Bananza,” which will launch in July, is set to cost $70. Nintendo hasn’t given a reason for this price difference between the two games, but it might be due to the fact that “Mario Kart World” is part of a larger franchise that is expected to sell more copies. This suggests that the higher price could be more about Nintendo capitalizing on its current situation rather than any other factor.

In the long run, it’s likely that video games will often sell for $80 or more due to ongoing economic issues and shrinking profit margins. Since Nintendo was the first publisher to adopt this pricing strategy, other companies are expected to follow suit in the coming months. However, some may view this price increase as blatant greed until it’s shown otherwise.

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2025-04-02 23:10