Gaming In Store Representation Helping Kill Nintendo Home Consoles?

Wisenheimer

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I find it difficult to believe that companies from behemoths like Microsoft to small fries like DVD/BluRay player manufacturers are okay with the licensing fees and Nintendo isn't.

I'm aware of the per-unit fees, however I'm also pretty sure that $20 a unit is a bit of a stretch and the actual cost is lower, but I won't speak up on the matter until I find conclusive evidence that this is the case - the BDA site doesn't mention such royalties so I can't quote anything - it must be a part of the actual agreement.

Edit: Welp, I found this.

If it's anything to go by, they'd pay $9.50 for each "BD player" and $0,11 for each pressed BluRay disc unless they went to BD4C which has lower rates. That's pretty acceptable if you ask me, and I'm willing to wager that a BD game console isn't far off that mark price-wise.


Royalty Fees:

BD Player: $9
BD Playback Software: $2
BD Data Disk (assuming 10 disks sold per customer): $.75.
DVD Drive: $2
DVD Decoder: $.50

So, you are looking at about $15 per unit just in licensing fees for the bluray technology. Then you also have the cost of releasing regular updates to the software, as bluray technology does not allow newer movies to play without firmware/software updates. I am not sure if there is a royalty fee for that, but probably not.

And if you look at Sony and Microsoft, they are very different machines. The Wii U is intended primarily as a gaming machine, and DVD and Bluray playback do not make games any better. Sony does not have to pay any royalty fees for bluray technology. Microsoft has aimed the Xbox as a poor man's home theater PC, so of course, their market niche pretty much demands that they include a basic home theater function like DVD and Bluray playback.

At between $1-2 billion dollars in projected cost, much of it going to competitors, and potentially making piracy even easier, it is no wonder Nintendo opted out of Bluray movie capabilities, especially considering that blurays are quickly becoming obsolete as consumers move toward cloud services.



[1] http://www.dvd6cla.com/royaltyrate.html

[2] http://www.one-blue.com/royalty-rates/
 
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Foxi4

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Fair enough, you make your point clear and thank you for conducting further research. :) We have a slightly different approach towards the matter, I think. I'd gladly "pay" the $20 for a useful, meaningful function (even though I think a company should keep industry standards in mind and this should be accounted for during development and treated as a per-unit loss) rather than go without. At the end of the day, you only pay for a console once wheras the functions set stays with you forever - I'd rather have more than less. You do have a point though - for some customers this $20 can make or break the deal. ;)
 

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