Iwata on the digital distribution of packaged software, balancing price
During Nintendo’s latest financial briefing, the company announced that the 3DS is currently able to download packaged software. The company will incorporate similar functionality for Wii U as well.
When Iwata was quizzed about the company’s plans during a Q&A session, Iwata said “We have prepared the structure because we anticipate that it will increase in importance in the future”.
Nintendo is mulling over their approach for the digital distribution of packaged software, as they need to balance pricing and consider retailers.
Iwata said:
“What I told you today is that we already have the necessary infrastructure to digitally distribute the software on a scale as large as the packaged software. We can start it as soon as we decide to do so. We have prepared the structure because we anticipate that it will increase in importance in the future, and I wanted you to know as a part of my presentation today that the company is not denying the future possibility of doing such activities. As for the actual digital distribution method, we need to consider what kind of cooperation we can make with wholesalers and retailers, but we think that there must be various solutions other than just positioning digital distribution as an enemy to them. Upon close consultation with them, we would like to determine the details of our digital distribution. We therefore have nothing to tell you about the differences in prices or release dates. Some argue that a downloadable version to be sold at the same price as the MSRP (Manufacturer’s Suggested Retail Price) of a packaged version is not competitive because packaged software is often sold at a lower price than the MSRP. Downloadable versions that are too cheap will create a different problem, while no one will want to buy games online at a price that is too expensive. As the spread of speculation caused by our remarks on undetermined things might have a negative effect on our business, we would like to hold back from making more comments until when we can actually start such digital distribution. Please let me tell you one thing again: there must be a solution other than positioning digital distribution as an enemy to wholesalers and retailers. When we find one, we think that the solution will provide an interesting future in which both of us can benefit.”
