I'm No Expert: Nintendo's Pricing Precedent.

Introduction

When it comes to game design, hardware innovation, or, most recently, pricing strategy, Nintendo has always followed its own rules. While competitors like Sony and Microsoft engage in aggressive discounts and frequent sales, Nintendo maintains a stubbornly high price point for its first-party games, even years after release.

Nintendo's reputation for value retention has been bolstered by this strategy, despite the fact that it has left budget-conscious gamers frustrated. How does Nintendo's strategy actually work to its advantage, and why does it refuse to lower prices?

The Nintendo Pricing Phenomenon

1. Prices for first-party games rarely drop. Unlike PlayStation or Xbox titles, which often see deep discounts within months of release, Nintendo’s major franchises (Zelda, Mario, Pokémon) rarely go on sale. Games like The Legend of Zelda: Breath of the Wild (2017) still retail near their original $60 price years later.

Why?

1. Value Perceived: Nintendo views its games as "evergreen"—enduring experiences as opposed to merely disposable entertainment. Lack of Competition: Because Nintendo exclusives do not directly compete with games developed by third parties, they do not require price reductions to remain relevant. Physical & Digital Parity: Nintendo avoids devaluing its games by keeping digital prices high, unlike Steam or PlayStation Store flash sales.

2. The "Nintendo Tax": Re-releases and Second-Hand Editions Even in the used game market, Nintendo titles hold their value. A copy of Mario Kart 8 Deluxe (2017) still sells for 40−50 used, whereas a used Call of Duty game from the same year might go for $5.

Additionally, Nintendo makes money from re-releases: Skyward Sword HD and other remasters typically launch at retail price. Rarely are classic games offered at significant discounts on Switch Online or as "Switch Ports." 3. Hardware that can't be depreciated Nintendo consoles also resist price drops. The Switch, seven years after launch, still sells near its original $300 MSRP, unlike the PlayStation 5 and Xbox Series X, which have seen bundled discounts.

Why does this work?

Appeal to Families and Casuals: Parents who purchase Switches for their children are not as concerned about cost as avid gamers. Unique Form Factor: No direct competition in the hybrid console space means no pressure to undercut rivals.

Why Gamers Accept (or Tolerate) Nintendo’s Pricing

1. Quantity versus quality With only a few microtransactions, Nintendo's first-party games are polished, complete experiences. Instead of paying for a game that is not finished and needs patches, gamers feel they are getting a premium product.

2. Brand loyalty and nostalgia For decades, Nintendo has worked to connect with its fans emotionally. Fans are willing to pay a premium for Mario, Zelda, and Pokémon because they trust the brand.

3. No FOMO (fear of missing out) Since Nintendo games rarely drop in price, there’s no incentive to wait for a sale. Gamers make a purchase knowing that they won't be cheated in the future.

The Downsides of Nintendo’s Strategy

While Nintendo’s pricing model works for its bottom line, it frustrates budget gamers:

Older games have steep entry fees for newcomers. When competing with Nintendo's classic games, independent developers face challenges. Digital sales are lackluster compared to Steam or PlayStation Store.

Conclusion: Is Nintendo’s Pricing Fair?

Both a strength and a weakness of Nintendo is its refusal to adhere to industry pricing standards. It preserves brand value and ensures developers get paid fairly, but it also locks out cost-conscious players.

Because fans continue to pay it, the "Nintendo Tax" will not change for the time being.