Bunta

I talked to my old college econ professor this morning and asked their opinion of Mario Kart World costing $20 USD more than Mario Kart 8 Deluxe when it launched on Switch. His response: "Well, there are multiple factors that go into pricing Nintendo will likely never talk too detailed about publicly, because it's just how finances work at a business. So, the Japanese Yen has depreciated against the US dollar. This is bad news for any Japanese company who's primary territory is the United States, because any money made here will not covert well into Yen. Thus, that alone means they factually make less money on anything sold in the US, than they do with something sold in Japan - or other more favorable countries. So now, that is a reality that didn't exist in 2017. Now you have to consider the United States economy on top. $59.99 was what Mario Kart 8 Deluxe cost in 2017. Inflation alone, no other factors, makes that $78 today. You see that $79.99 price point and it looks expensive, but inflation alone it's merely keeping pace. Despite this, due to how bad the Yen does in exchange for USD, Nintendo is factually making LESS money profit wise per copy sold of Mario Kart World even at that $80 price point, than they were at the $60 price point in 2017. So while this looks bad for consumers, Nintendo is actually taking a hit even at that price. This is also likely why prices are so high in other countries too. The Yen isn't really performing well against anything at this time. So if you ask me if Nintendo is overcharging for Mario Kart World, the answer is absolutely not. It's actually a slight undercharge. The game industry has been volatile for years and while some of it is overspending, the other aspect is that companies are making way less actual profits per game sold because money just isn't worth the same. Everything has become more expensive. It is a tough pill to swallow, but video game consoles are a luxory item. Luxory items are often hit harder than essential items. The fact Nintendo - and eventually PlayStation and Xbox - haven't passed all of this entirely onto the consumer has mostly been a great thing for the consumer, even if it's been bad for the video game makers. So overall? Shocked it wasn't higher. But Nintendo can't ignore these factors or it would cause extreme damage to the companies profit margins, which could, even if selling well, lead to layoffs and closures of studios. They may sell less copies of games this generation, and it may happen anyways. But they are banking on people really wanting to keep Nintendo in their lives. Time will tell if it works out. There is no right or wrong approach here. Every company is trying to navigate the world's economy right now."