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News in Japan
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News Report: The Nintendo Tax (Switch)
Notice: This is an archived news article published by a member of the site and not our staff.
The layout and functionality of this page will likely be broken.
Sorry for the inconvenience!

The Nintendo Tax (Switch)
Nintendo has released their newest console called the Nintendo Switch which caught up by storm with record breaking sales in its first week. Nintendo also released its own online store accessible from within the console so that gamers could download new games directly without having to go to the store. However, there\'s a bit of a problem....

The Cost of Physical cartridges
Nintendo had to resort to both downloadable games and physical cartridges which were popular prior the Nintendo Gamecube on the N64 and before. Cartridges were incredibly enjoyable because they held a feeling of great worth as bulky as they were and as real s they were. Cartridges didn\'t die out completely as handheld devices required them since optical discs would drain batteries rather quickly as we\'ve seen with the Sony PSP. The Nintendo switch is similar to a handheld as it\'s a console that you can take with you where you go.



The issue with physical cartridges is that they cost a fair bit more than bluray discs and by a bit I mean at least $5 or $10 more depending on the size required. This drives the prices of Switch games up by said amount. What if you wanted a digital copy instead?

Nintendo\'s Pro-Retailer Policy
If you plan on releasing a video game to the Nintendo Switch you will have to also make it available digitally but at the same price as what you are selling the game at retail. This is Nintendo\'s policy because they are trying to protect retail for whatever reason they have behind closed doors. The thing is, people don\'t really want to pay the same amount for a digital copy, they want to pay less because they don\'t have anything tangible and they know it costs a fraction of a penny to transfer a digital copy to the consumer. We all know that game companies need to make a profit and a reasonable price should be offered, but if it costs $15 to manufacture a physical copy and have it shipped to your home, then it should cost $15 less for the digital download.

Click to expand


This would make sense and would likely drive sales since digital downloads are a lot more convenient and as Amazon loves to boast, people become trigger happy with their credit card when it comes to purchasing anything online. Yet, for reasons unknown, Nintendo wishes to put retailers and their own online distribution platform on equal playing grounds. But even still, retailers are dying one after the next and it won\'t be very long before local game retailers go out of business completely. Circuit city is dead, Sears is dead, K-Mart might be next, Best Buy / Futureshop is walking on thin ice, many game retailers have closed their doors and game stop is closing about 2-3% of their stores soon to make ends meet.

For better or for worse, Nintendo requires this \"tax\" and for games that are getting multi-console releases, it may not be worth the added premium if you plan on just playing the game at home.
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