Quote Originally Posted by 8-bitNesMan View Post
What I have never understood is why the first party games seem to never drop in price and then they just stop making them. If this business model is profitable for other publishers then why not Nintendo as well?
Two reasons. First, if Nintendo was to regularly cut prices on its games, it would encourage people to wait until the price dropped, resulting in less profit per unit. Second, cutting MSRP results in people buying older cheaper games rather than newer full price games, again impacting net profit. Since Nintendo doesn't really compete much for sales with third parties on its platforms, cutting prices makes very little sense. The truth is, it's not really all that profitable for third party publishers either, but since they are usually competing against other third parties for sales, they are far more willing to accept some profit on a title rather than risking the all or nothing play by not cutting prices at all.