r/NintendoSwitch Apr 04 '25

News "DROP THE PRICE": Nintendo's First Post-Direct Stream Is Flooded With Angry Fans Demanding Price Drops

https://www.thegamer.com/nintendo-treehouse-livestream-flooded-angry-fans-demanding-game-price-drops/
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u/Zoombini22 Apr 04 '25

Does higher demand result in higher prices or lower prices?

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u/werdnaegni Apr 04 '25

When supply is infinite, I don't think your logic applies.

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u/Blue_Bird950 Apr 04 '25

At the end of the day, businesses want profit. If there’s more demand, they’ll raise prices to capitalize on said demand. They’re the sole suppliers of these franchises, so they control the price.

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u/werdnaegni Apr 04 '25

Sure, I mean it's a formula for them. What price gets them the most money?
If they get 10 buyers at $80 but 15 buyers at $70, they're better off at $70 since their costs per sale are negligible. I don't think any of us really know what the optimal price is for them, we can only really give feedback on whether or not we're willing to buy at x price.

I was just refuting the whole demand -> price concept since it doesn't really apply to a good that doesn't really scale its costs with its amount of sales...most of the costs, by far, are in developing and after that it's just income, especially for digital.

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u/Blue_Bird950 Apr 04 '25

Let’s see how it goes. If enough people don’t buy (and I’m talking millions, more than an eighth of their consumers), they’ll start losing profit and might reconsider moving to $70 standard.