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Opinion: High game prices threaten Nintendo 3DS success

Can third-party games thrive at $39.99?

Opinion: High game prices threaten Nintendo 3DS success
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3DS

Money has always been a sensitive issue for gamers.

As the debate rages about the 59p/99c iPhone and iPod touch race to the bottom, Nintendo has opted for a different approach with high game prices that not only surpass those of the common iPhone release, but even those of the company's best-selling Nintendo DS handheld.

While not altogether surprising given the supremely expensive Japanese prices announced some weeks ago, the $39.99 price point for US 3DS games announced this week runs counter to the trend of affordable portable games. Rather than embracing a progressive pricing strategy, Nintendo is making 3DS games a premium.

Past is prologue

No doubt first-party titles like Pilotwings Resort and Nintendogs + cats will fetch the extra cash from gamers eager to take in quality Nintendo games. But there's cause to be concerned about third-party games such as Asphalt 3D and The Sims 3, which may not seem so attractive at an increased price.

Just because Pilotwings Resort or Kid Icarus: Uprising can sell well at $39.99 doesn't mean that Super Monkey Ball 3D can - if anything, third-party titles will have a tougher time selling at this higher price. Gamers will no doubt pay for noted Nintendo releases, but it's a harder sell for third-party releases.

We know this because it's proved true time and again on Nintendo DS. Of the top 20 best-selling Nintendo DS games since the handheld's release, 19 were published by Nintendo. The remaining title - Dragon Quest IX: Sentinels of the Starry Sky - was published by Nintendo in the US and Europe.

In comparison, the top three best-selling PSP games were published by companies other than Sony.

Apples to 3D oranges

It's also important to dispel the notion that Nintendo 3DS will succeed with $39.99 games because Sony managed the same price for PSP games - not only did PSP games sell in smaller numbers, but times have changed and consumers want more affordable content.

The high price of 3DS games will complicate matters for third-party publishers given the availability of key franchises on other platforms. Madden NFL for 3DS at $39.99 will be a tough sell when a fantastic version of the game is available for iPhone at a mere $4.99. In these cases, the allure of 3D graphics is the only thing that sells the product.

For some gamers that will be enough, but it's unlikely to draw massive sales for multi-platform releases.

The guise of competition

Herein lies the challenge. Nintendo believes that 3D is a unique feature that will propel gamers to buy a 3DS and loads of games: however, this underestimates the appear of gaming on other platforms - iPhone and iPod touch, the forthcoming Android-based Xperia Play, and Sony's upcoming NGP.

The prevalence of digital downloadable games on these devices is a serious threat to 3DS because such content is cheap and convenient. Selling a million copies of The Legend of Zelda: Ocarina of Time 3DS seems like a sure thing, but can Sega sell half a million copies of Super Monkey Ball like it did on iPhone and iPod touch?

To be sure, the markets are different for iPhone and Nintendo 3DS, but to discount the former as a non-competing mobile phone is to use the same tired and outdated excuses thrown out by Nintendo executives who claimed it wasn't a threat to their presumed dominion over portable gaming. Whether you like it or not, these mobile platforms are a factor.

An opportunity

The rise of cheap, easy mobile games has us talking about Angry Birds more than Pilotwings Resort. There's a strong desire for inexpensive, accessible portable games and Nintendo risks alienating conservative consumers with high prices and a lack of compelling, affordable digital downloads.

There's an opportunity for third-party publishers to enter the 3DS playing field with lower-priced titles. Rather than try to eke out sales at a premium price point fat which only Nintendo is likely to succeed, the long held $29.99 figure or releasing downloadable titles for even less could prove more lucrative. A $29.99 Super Monkey Ball 3D seems far more reasonable than a $39.99 one.

To be clear, Nintendo 3DS is an exciting device with enormous potential. The question is whether it will be a portable to be played for big Nintendo titles or if it can grow into a more competitive platform with room for a wide range of games to meet the pricing needs and content desires of pocket gamers everywhere.

Tracy Erickson
Tracy Erickson
Manning our editorial outpost in America, Tracy comes with years of expertise at mashing a keyboard. When he's not out painting the town red, he jets across the home of the brave, covering press events under the Pocket Gamer banner.