Retailers may be jumping up and down about Nintendo's recent move to sell 3DS games in both retail and digital packages, but Satoru Iwata thinks it is good for the industry.
Nintendo's President stated that retailers will have an easier time satisfying demand without the need to order surplus stock, which should increase profitability.
One of the challenges in the video game distribution industry in Japan is the higher inventory risk; it is a bigger challenge than ever before. Since it is common practice in this industry that retailers take the inventory risk, their profits from good sales can be easily wiped out by surplus stock.
When you visit a store for a game only to hear from the clerk that it is now out of stock and the next shipment will not be until three weeks later, you will be discouraged to buy it. The demand sometimes does not lead to actual sales, like in the case I just mentioned. The reason we will start the digital download sales is that decreasing the inventory risk will be of great benefit to the video game business." - Satoru Iwata, Nintendo
Successful digital distribution platforms such as Steam and Origin are often rather secretive when it comes to sales figures, but Nintendo has stated that they will release digital sales figures of New Super Mario Bros. 2, the first digital title for the 3DS to show consumer behaviour.
How do you intend on purchasing New Super Mario Bros. 2? Discuss in the comments below.
By Stephen Heller - Bio