The New Nintendo Business

WHEN the Nintendo Switch was officially revealed in early January, President Tatsumi Kimishima took the stage. The banking history of Kimishima is far different from that of Iwata’s game development. Although Kimishima has stayed the same course Iwata laid before his tragic passing, we’re all finally feeling the effects of Nintendo’s new highest decision-maker.

When talking to investors, Kimishima used the phrase “Nintendo-like profits” to explain Nintendo is not going to repeat the Wii U years of bleeding corporate dollars! For instance, selling their next dedicated gaming platform, now known as the Nintendo Switch, at anything but for profit was out the question!

Theme parks, Mobile, merchandise, and even film were not the raised solutions to achieve those “Nintendo-like profits”, but Kimishima reissued commitment to their Interactive Entertainment business, their very essence of icon IP’s and unique hardware.

With the Nintendo Switch soon-to-be-released on March 3rd, Tatsumi Kimishima and his international banking background has reared its sure money-making head. And again, Kimishima’s business strategies are far different than Iwata’s, for better or worse, but likely for better!

Kimishima views Nintendo’s hardware and software offerings, more than ever before, as a premium brand, extending the premium cost to the consumers!

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Goodbye to Iwata’s Free-Online endeavor, hello to Kimishima’s improved Paid-Service

Iwata gave the gaming world an online service, free of charge, dating all the way back with the original DS in late 2005 to the present with the Wii U in 2017.

Third-Party developers understandably asked Nintendo for an online infrastructure to better capitalize on their investments. Gameplayers wanted a better overall online experience! Pulling from his money managing skillsets, Kimishima likely saw this as a win-win situation, as long as at least some of the expenses are deferred on the consumer level; perhaps $29.99 for the yearly subscription.

And Kimishima charging more of a premium does not stop there!

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Certain Nintendo Switch accessories’ higher price are justifiable, others are questionable

Have you noticed the premium price tag for those Switch accessories?

Yeah the $69.99 Pro Controller is easier to digest when you think of all the tech Nintendo put inside, but every other accessory feels like it’s priced, at minimum, $10 more than it would be if Iwata was still President of Nintendo. Even the new Zelda Series amiibo has risen in price by a few dollars, now $15.99-$19.99!

The $79.99 Switch Dock is definitely Kimishima noting to us that Switch is, more or less, a premium product. And oh, I hope you didn’t think that the bundled Joy-Con Grip that comes with your Switch system came with an extra USB-c cable and actually charged your Joy-Cons. Why not just give out a plastic grip while charging $29.99 for a Charging Joy-Con Grip accessory? Good going Kimishima.

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Special and Master Editions, and DLC will do more than cover Zelda’s long development cost

When has Nintendo ever done a Collectors Edition for their software? $129.99 is more than double the standard The Legend of Zelda: Breath of the Wild title. The newly announced $19.99 Zelda Expansion Pass DLC will also keep the revenue coming, no matter which version you might purchase.

If you remember, Iwata was not allowing their main first-party titles to see almost any kind of major permanent price drop, not until many moons had passed. Sure, some titles may go on sale from time to time, but they don’t stray far from the Nintendo’s MSRP.

With Kimishima, not only will MSRP for their software not drop, hence the Mario Kart 8 Deluxe $59.99 premium, but expect more collector editions, and DLC to be priced accordingly!

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How Kimishima’s New Nintendo Business will reach “Nintendo-like profits”

When Kimishima was mentioning “Nintendo-like profits” he was referencing the DS and Wii days, and Nintendo would love the Switch to rival the Wii’s staggering install base! But Nintendo likely knows that’s a hard goal to attain!

Instead of necessarily trying get such a massive user-base for the Switch to reach “Nintendo-like profits”, Kimishima’s new Nintendo business is to charge a premium for everything they’ll eventually offer, big or small.

This was bound to happen once Nintendo’s Board of Directors elected someone in Tatsumi Kimishima, whose banking expertise moved him up the inner-ranks of Nintendo ages ago. He literally means business, “Nintendo-like profits” business!

Author: Kyoudai

I have a strong passion for all types of gaming, not only limited to Interactive Video Games! Be it real world or virtual, active or sitting, mental or physical, I enjoy and welcome old and new forms of games! My biggest game related affinity - Nintendo!

1 thought on “The New Nintendo Business”

  1. An interesting article. I had hoped that Nintendo’s pricing of the BOTW amiibos was based on more detailed figures, not being a new price point for all of them. I was also surprised that Zelda would have a DLC, more because the series never has, then in the DLC itself. The price points for the accessories are indeed higher. But on a personal level, I enjoy the brand and will accept the “you get what you pay for” mentality, and the need to compete in the game/console market. Hopefully this new release will show what others what fans already know- that the Nintendo brand is creative, with a vast library of exceedingly enjoyable content. Don’t let me down, Nintendo!

    Liked by 2 people

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