Microsoft Undercutting 3rd Parties Again?

[Kbu Chan]

Boo hoo

[Yoshi]

Back in the day, 1994 I believe, DKC was a 4 meg cartridge that cost $59.99. Earthworm Jim was a 2 meg cartridge that cost $69.99. The reason was the fees.

Dave Perry was furious because he spends less on materials per cart than Nintendo but still has to charge more SOLELY because of the fees, and Nintendo also got a chance to give DKC all the free publicity on Earth thanks to NP (EWJ got praise in the mag, too, but nothing like DKC).

Its kind of the same thing. Without the spending more per cart, of course.

Yep. The only difference is that industry leaders get more slack with third parties, because they have the installed userbase to get away with this shit. Microsoft is still an industry loser. They are third in total hardware sales and third in total profit over the last five years, yet they are acting like they are God's gift to the industry.

[Bacon McShig]

Licensing fees are an industry convention and a huge source of income for 1st parties. You really expect MS eschew that system and thereby rebuke profits, out of the kindness of their hearts? C'mon, I thought you were a Republican, Yosh.

If 1st parties price the same, they're reaping a much higher profit margin than the 3rd parties and also fucking over the consumer by not passing on the savings of not having to pay licensing fees. If the 1st parties price lower, they're undercutting and taking sales from under the 3rd parties, but the consumer benefits. They went with the option that at least benefitted one of the two parties. Yeah, the 3rd parties don't win either way...

Boo hoo

I'm not in favor of licensing fees, mind you, but if you're looking for MS to be the one to repeal them, you're just being silly.

[Yoshi]

Licensing fees are an industry convention and a huge source of income for 1st parties. You really expect MS eschew that system and thereby rebuke profits, out of the kindness of their hearts? C'mon, I thought you were a Republican, Yosh.

No, I don't expect it. In fact, I hope they quadruple the licening fees. The less third party games hit the 360 the better. It saves me money, as that's the easiest of the three consoles to skip.