Part 3/8:
The recent uproar surrounding game pricing largely overlooks the fundamental economic concepts of supply and demand. The presenter asserts that gaming giants like Nintendo are capitalizing on a market that is increasingly accustomed to forking over substantial sums for new releases—especially AAA titles. This dynamic leads to a notion called price elasticity, which essentially measures how responsive consumers are to price changes. Given Nintendo’s successful history in creating evergreen franchises—like Mario, Zelda, and Metroid—the likelihood of consumers purchasing these titles at $80 seems high. Many are conditioned to pay a premium for the brand recognition that these intellectual properties represent, ensuring continued sales even at elevated prices.