Case ID: M-0519
Solution ID: 39111

Nintendo Company Limited The Launch of Nintendo 64

Case Analysis

In 1996, Nintendo was finalizing launch plans for the Nintendo 64. Two key decisions remained. The first decision involved the retail price. The company had originally planned to change to $250, but recent increases in the price estimates of the necessary computer chips raised the possibility of a price increase. A second decision concerned royalties on games developed by outside software developers. High royalties would restrict the number of games and help Nintendo maintain quality standards. Alternatively, lower royalty fees might increase the number of games available to consumers, which might spur hardware sales.

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