How Much Did the Original Nintendo Entertainment System Cost?

The original Nintendo Entertainment System (NES) launched in North America in 1985 with an MSRP of $179.99 for the Control Deck bundle and $199.99 for the Robot Series bundle, which included R.O.B. the Robot. Adjusted for inflation, that amounts to a steep $447 and $497 respectively in 2022 dollars.

Why Did the NES Launch at Such a High Price Point?

Nintendo purposefully priced the NES much higher than competing consoles like the Atari 2600, ColecoVision, and Sega Master System, which retailed between $150-$200 at the time.

The company positioned the NES as a premium product with advanced technology and games that justified the price bump. According to former Nintendo of America president Reggie Fils-Aime, “We wanted consumers to perceive the NES as an upgraded system compared to Atari and others.”

This strategy helped distance the NES from the previous video game crash while signaling it was a high-end console worth investing in. Though expensive, the price communicated the NES provided a serious leap in gameplay experiences and graphics compared to earlier first-gen home consoles.

The Iconic Action Set Bundle Cost over $340 Today

In 1988, Nintendo released the popular Action Set bundle for $149.99. Bundled with the Control Deck, two controllers, the Zapper light gun, and the Super Mario Bros/Duck Hunt double game cartridge, it became the must-have NES package.

$150 in 1988 equates to about $343 today when adjusted for inflation. So most kids and families were paying over $340 for this iconic NES setup that kicked off many 80s childhoods.

Lower Prices and Pack-In Games Drove Massive Popularity

While the NES debuted at high price points, Nintendo incrementally lowered costs over the lifespan while adding bundled games like Super Mario Bros. This made the system much more affordable for American families and fueled the incredible success and popularity of the NES.

By 1990, the Action Set was $129.99, and the standalone Control Deck had been cut to $99.99 – a $70 drop from its launch price just 5 years prior. With hot competition from Sega‘s Genesis console, Nintendo had to become more competitive on pricing.

By slashing prices and packaging hit games like Super Mario Bros. 3, the massively popular NES became accessible to a wider demographic of households. Between 1986 and 1990, NES sales skyrocketed from 1 million units to over 25 million as pricing fell.

Manufacturing Costs vs. Retail Prices

According to estimates, the manufacturing cost for the NES Control Deck was around $75 per unit in 1985. With the retail prices set at $179-$199, Nintendo had a healthy profit margin on hardware sales alone of at least $100 per console sold.

Compare that to modern consoles like the PlayStation 5, where Sony is estimated to lose $150-200 on each hardware sale but recoups that from game licenses and subscriptions.

Nintendo was able to turn large per-unit profits given the NES‘s high launch price. While prices came down later, theconsole‘s success was initially built on healthy hardware margins even at $179-$199 costs for consumers. This contributed to strong earnings for Nintendo despite an economic recession in the late 1980s.

The Premium Price Set the Tone for a High-End Console

Given most households only had Ataris and primitive first-gen consoles, forking over nearly $200 for the top-of-the-line NES felt like an major investment and signaled you were serious about gaming. Kids recall eagerly saving allowances or begging parents to buy an NES, seeing it as a status symbol among peers.

Fils-Aime reinforced this sentiment: “The NES was an aspirational purchase. You had to convince your parent that this was a worthwhile expenditure.”

So the heightened price created a perception of value and quality – a strategy that worked miracles to re-ignite the post-crash gaming industry. Though far above modern console prices, to 1980s kids the price meant Nintendo was the real deal.

How Does NES Pricing Compare to Today‘s Consoles?

Modern consoles like the PlayStation 5, Xbox Series X, and Nintendo Switch price between $299 to $499. In contrast, the NES in 1985 was equivalent to paying over $400 for a new console today.

Console makers now aim for affordability by selling hardware at slim margins, knowing they will monetize users through game sales, services, and subscriptions long-term.

Data source: Press Start

As seen above, the NES was an anomaly in costing 3-4 times more than subsequent Nintendo consoles when accounting for inflation. The expensive launch price was a risk, but it established the NES as a top-of-the-line console worth paying up for.

Conclusion: A Strategic Pricing Tactic That Paid Off

For a video game console in 1985, the nearly $200 Nintendo Entertainment System represented a major purchase for families. But the premium pricing strategy validated the NES as a high-end, advanced system that revived the industry post-crash.

While the NES price was high compared to modern consoles, the launch bundles included killer apps like Super Mario Bros that made shelling out worthwhile to gamers. And Nintendo struck gold by incrementally lowering costs while packing in more hit games, ultimately turning the NES into an icon.

So while the NES seemed costly at first, its full lifespan shows thoughtful pricing tactics that made the console achieve mass-market success. By managing both perception and affordability, Nintendo‘s premium pricing model laid the foundations for their gaming empire.