this post was submitted on 06 Apr 2025
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Nintendo is probably going to opt increasing licensing fees if the console profit margins drop, so it’s probably going to increase costs of games across the board (even companies with zero physical presence).
Which is funny because consoles are more on the razor blade (a more apt comparison is printers and their ink) model of doing business.
For those who don't know what I'm talking about, some items like printers or razors are sold with very thin profit margins, or at a loss, then make it up with the items that's required to get use out of it. Printers are notorious for this model as the printer itself is pretty cheap, but the ink costs magnitudes higher than it costs to produce. Consoles are also known to use this model of business too.