Nintendo Cuts Royalty Rates to Woo Game Developers
Posted by Marcel Klum on 11 April 2003 - 06:54 · 5 comments & 764 views
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#1 Posted by Bant on 11 Apr 2003 - 07:10
- this seems like a mix of old and new...?
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#2 Posted by btallack on 11 Apr 2003 - 18:41
- This is good news for developers, and people with Gamecubes. While there is some good out-of-house games, they could use more.
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Japan's Nintendo, third behind Sony PlayStation 2 and Microsoft Xbox game console, said that in March it adjusted its royalty rate structure for all licensees to make it competitive with its rivals.
"Before our royalty rate was a little more aggressive so to the third party publisher it was a little less attractive to make games for GameCube," George Harrison, senior vice president of marketing for Nintendo of America, told Reuters.
Software is a catalyst for the gaming industry, with hit titles spurring sales of boxes on which they are exclusively available. In turn, consumers then seek to buy more games for the particular machine they own.
What is more, games developed by console makers are a profit engine, while major third-party publishers typically pay a royalty to the console maker and keep the lion's share of profits for themselves.
Nintendo earlier this week blamed a slump in profits on GameCube, whose sales fell short of its target of 10 million by 44 percent for 2002.
The company admitted that new titles in its long-running 'Mario' and 'Metroid' series were overshadowed by blockbuster demand for "Grand Theft Auto" (GTA) games, developed for the PlayStation 2 by publisher Take-Two Interactive Software Inc.
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