Why are all Nintendo games 60 dollars?

Nintendo‘s first-party games have stuck to the standard $60 MSRP for new releases for over 15 years now. As other publishers have experimented with discount pricing and free-to-play models, Nintendo has held firm with premium pricing for its exclusive franchises and characters. What has led Nintendo to keep its games at the same $60 price point release after release?

Evergeen Franchises Retain Value

Nintendo owns some of the most beloved and recognizable characters and series in all of gaming, including Mario, The Legend of Zelda, Pokémon, and Animal Crossing. These franchises continue selling at a steady pace for years or even decades after launch. For example, Mario Kart 8 Deluxe on the Switch has sold over 45 million copies since 2017, consistently ranking among the console‘s top sellers month after month according to Nintendo‘s fiscal reports. Unlike annualized franchises like Call of Duty or sports games, Nintendo‘s evergreen first party games have incredible longevity and rarely see deep discounts. If people keep purchasing Mario and Zelda at $60 every holiday season, Nintendo has little reason to drop the price.

Strong Brand Loyalty Among Fans

As one of the oldest video game companies with over 40 years in the industry, Nintendo has built up incredible brand recognition and loyalty. For many gamers who grew up playing Nintendo consoles, the company holds a special nostalgic value. This passionate fanbase gives Nintendo leverage to charge a brand premium that most publishers cannot match. Gamers trust the consistent creativity and polish of Nintendo‘s titles, and many are willing to pay more for that Nintendo magic compared to the average third-party release.

AAA Production Values

While Nintendo‘s visual aesthetics are stylized and family-friendly, their games boast AAA production values that rival blockbusters like God of War or The Last of Us. Breath of the Wild cost an estimated $70-100 million to develop over 5+ years, matching Hollywood movie budgets. Creating enormous 3D worlds filled with handcrafted details requires large teams and resources. Nintendo invests heavily in its software, and higher prices help recoup those costs. Smaller indie titles can afford lower price points – Nintendo games need to sell at $60 to be commercially viable.

Lack of Competition in the Handheld/Hybrid Market

The Nintendo Switch lacks direct competition in the handheld/hybrid console market niche. Without competing platforms like the Xbox or PlayStation lowering prices, Nintendo can set pricing for the Switch ecosystem without being undercut. This monopoly over the hybrid category gives them freedom to keep software pricing high.

Used Games Hold Value

Third party retailers like GameStop cannot significantly discount used Nintendo games due to their resale value staying higher. Super Smash Bros. for the WiiU still goes for $40-50 used at major retailers. This limited price depreciation for physical games enables Nintendo to keep new copies at $60 with less undercutting from the used market.

Maximizing Profits

At the end of the day, Nintendo is just being transparent about optimizing profits over consumer-friendly discounts. During a 2018 Q&A, Nintendo‘s Shuntaro Furukawa stated:

"We believe that the premium feel is very important […] and we will continue to try to maintain the premium feel of Nintendo software."

While players have complained that this makes Nintendo out-of-touch, the strategy clearly works financially. Nintendo‘s operating profit has increased 43% in the last 5 years thanks to maximizing software profits.

Physical Game Cartridge Costs

Nintendo cited production costs for physical Switch cartridges as a reason for not discounting games. Larger storage cartridges cost more materials and shipping to manufacture. Even massive 32GB cards only cost pennies, but add up with tens of millions sold. Digital-only games avoid these costs and have more flexibility in pricing.

Comparisons to Other Publishers

How does Nintendo‘s premium pricing philosophy compare to other major publishers? Companies like EA and Activision often drop prices within months to drive volume, relying on microtransactions for profit instead. This can frustrate players when combined with $60 season passes. Ubisoft uses frequent heavy discounts to push in-game spending as well. Sony invests in prestige narrative games, but discounts them after a few years to support hardware sales. Nintendo complements hardware profit with evergreen software value. While anti-consumer to some, Nintendo uses premium software pricing to support its integrated hardware-software model.

Is the $60 Price Barrier Beginning to Crack?

While Nintendo has stood by the $60 price tag for mainline Zelda and 3D Mario games, there are signs they may be loosening that restriction:

• Nintendo Selects budget line – Popular games like Mario Kart 7 drop to $20-30
• Remasters like Skyward Sword HD launch at $50-60
• F2P mobile games like Fire Emblem Heroes
• Pokemon Legends: Arceus launched at $60 but quickly discounted

The Pokemon example shows Nintendo testing the market for discounts on evergreen IP. However, flagship titles like Breath of the Wild 2 will likely stick to $60 for the foreseeable future. Nintendo marches to the beat of their own drum, for better or worse. As long as fans keep buying, the house of Mario will keep prices high.