Nintendo's odd attempt to bridge the digital/retail sales divide

Arstechnica- When Nintendo announced last week that it would soon start offering the majority of its retail 3DS and Wii U games as digital downloads, it represented a major change in policy for the company. But buried in the announcement was what could possibly be an even more significant change in Nintendo's relationship with brick and mortar retailers.

For the past few years, Sony and Microsoft have both let game retailers share in a slice of the downloadable marketplace by selling codes for downloadable games and add-on content directly at the register. The retailer acts like a physical Xbox Live Marketplace or PlayStation Store here, sending the purchase request directly to the platform holder's servers and printing out a download code. In exchange, the retailer pockets a commission of 15 to 20 percent of the sale price, which is set by Sony or Microsoft as identical to the price offered on their online stores.

The relationship Nintendo is envisioning for retailers selling its downloadable games is more akin to the standard wholesale model currently used for physical games. Under Nintendo's plan, retailers would buy download codes directly from the publisher at a lower, wholesale price, then resell them to consumers at whatever price the retailer thinks will bring in the most profit.

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ronin4life2749d ago (Edited 2749d ago )

So let me get this strait: by opening an otherwise closed market and giving consumers choice, in order to move forward Nintendo should monopolize their eshop and dictate all prices?
That is regression and backwards thinking in regards to free market capitalism, not progression.

Furthermore, you are only seeing this in one possible way: lower stocking cost will empower rates to remain the same with lower retailer risk. But instead, what if this allows for cheaper stocking and these savings come out in price reduction for consumers in order to ENSURE sales against retailing rivals?
Walmart might think it best to discount their codes by 5 or 10 dollars in order to ensure sales against gamestop. Unlike physical retail, the codes will be cheaper to purchase wholesale and to stock, allowing for wiggle room when it comes to competitive pricing.

And then there is the potential for retail specific sales. Think steam sales, for instance. And then there are big shopping seasons like black Friday, and the numerous Japanese sales seasons.
The possibilities and potential are far greater than the competitors in-place systems.

Klad2749d ago (Edited 2749d ago )

To be honest, (this is just my opinion) I dont want things to be ALL digital download, because i think it will cause a market crash sooner or later. dedicated phisical games retailers will sieze to exist. Just like what happend with the music industry, where are all the dedicated record shops?? THERE GONE. Apple helped to put a nail in that coffin with iTunes! I can only think of one in the UK off the top of my head & that is HMV. I think too much of our personal details will be flying around the internet aswell. A digital age maybe good & convienient for some, but there is an ugly flip side.

godzilla722749d ago

Stick to retail, the hell with all this digital nonsense!

catfrog2749d ago

digital versions offer less to the consumer and should be priced as such: $30, maybe $40.

kesvalk2748d ago

wait, i can't buy the game directly from nintendo eSHOP?

fuck you nintendo!

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