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RUMOR - A detailed breakdown of what devs/pubs pay to get a Switch game released physically (UPDATE)

UPDATE - Daniel Ahmad, an analyst at Niko Partners, chimed in to say that he believes the Switch and PS4 are incorrect.

- the price devs/pubs have to pay for physical Switch games is around $8 US dollars per unit
- one unit is the case and game card
- PS4 games are about $5 dollars per unit
- minimum number of units the publisher/developer is required to purchase is 6,000
- the 6,000 units are just for one region
- there are special guidelines that need to be passed, QA checks and the signing of a Distribution of Physical Goods form,
- devs/pubs make less reveue due to the costs of manufacturing and distribution
- this is why retail games need to be sold at a higher price

Wii

Bulk Pricing of Single Layer Discs per each Disc:

Wholesale Price: $0 to $23.99 – Licensee Cost – Bulk Discs: $5.50
Wholesale Price: $24.00 to $39.99 – Licensee Cost – Bulk Discs: $7.50
Wholesale Price: $40.00 and up – Licensee Cost – Bulk Discs: $9.00

Bulk Pricing of Dual Layer Discs per each Disc:

Wholesale Price: $0 to $23.99 – Licensee Cost – Bulk Discs: $6.00
Wholesale Price: $24.00 to $39.99 – Licensee Cost – Bulk Discs: $8.00
Wholesale Price: $40.00 and up – Licensee Cost – Bulk Discs: $9.50

Game Disc Minimum Order Quantities:

Initial Order Minimum: 3,000 (quantity divisible by 600)
Reorder Minimum: 1,200 (quantity divisible by 600)

Bulk Pricing of Single Layer Demo Discs per each Disc:

Licensee Cost of Goods: $2.50 per disc (bulk discs only)
Order Quantity: Maximum order quantity of 3,600 pcs.

Demo Disc Payment Terms: A payment of wire transfer for the amount of goods plus the $450.00 initial stamper fee must be paid at the time of ordering.

3DS

Memory Configuration: 128MB + 128KB Flash ROM – Licensee Bulk Price: $7.10
Memory Configuration: 128MB + 512KB Flash ROM – Licensee Bulk Price: $7.60
Memory Configuration: 256MB + 128KB Flash ROM – Licensee Bulk Price: $8.10
Memory Configuration: 256MB + 512KB Flash ROM – Licensee Bulk Price: $8.60
Memory Configuration: 512MB + 128KB Flash ROM – Licensee Bulk Price: $9.10
Memory Configuration: 512MB + 512KB Flash ROM – Licensee Bulk Price: $9.60
Memory Configuration: 1GB + 128KB Flash ROM – Licensee Bulk Price: $10.10
Memory Configuration: 1GB + 512KB Flash ROM – Licensee Bulk Price: $10.60
Memory Configuration: 2GB + 128KB Flash ROM – Licensee Bulk Price: $11.10
Memory Configuration: 2GB + 512KB Flash ROM – Licensee Bulk Price: $11.60
Memory Configuration: 4GB + 128KB Flash ROM – Licensee Bulk Price: $13.10
Memory Configuration: 4GB + 512KB Flash ROM – Licensee Bulk Price: $13.60

Bulk Goods: Packed 1,200 cards per carton.

Finished Goods: Unit price is $0.90 more than the bulk goods price. Price includes game card, title sheet, instruction manual, warranty card, plastic case and poster. There are 48 game paks per carton.

Initial Order Minimum: 6,000 pcs. bulk and finished goods.

Minimum Re-order Quantity: 1,200 pcs. bulk and finished goods.

Wii U

Bulk Pricing of Single Layer Bulk Discs per each Disc:

Certified Wholesale Price: $0 to $23.99 – Licensee Cost – Bulk Discs: $6.50
Certified Wholesale Price: $24.00 to $31.99 – Licensee Cost – Bulk Discs: $7.00
Certified Wholesale Price: $32.00 to $39.99 – Licensee Cost – Bulk Discs: $8.00
Certified Wholesale Price: $40.00 and up – Licensee Cost – Bulk Discs: $9.00

Game Disc Minimum Order Quantities:

Initial Order Minimum: 6,000 (quantity over the order minimum must be divisible by 600)
Reorder Minimum: 1,200 (quantity over the order minimum must be divisible by 600)

Categories: Top Stories, Rumors, Consoles
Tags: wii, 3ds, wii-u, switch

Comments

So... if I understood this right a 3 USD price increase on switch cartridges compared to ps4 disc equals to a 10 USD price increase compared to a ps4 game?...

You'll also factor in what retailers look for up front as well for physical warhousing of units.

Those cost are also present on the ps4 side of things

I wonder what other analysts have to say about this.

jacktendo92
Sat May 13 17 02:49pm
(Updated 1 time)

And the reason why I say that is because to my knowledge, PS4 physical bulk disc equates to whatever is higher ($4.50 per disc or 20% percent of the wholesale price.)

But if it's finished goods, you're looking at $4.80 or 20% of wholesale price. So the PS4 number in the article is true. Switch one is the one we need a definite answer on.

However PS4 prices do vary if you change the wholesale price.

Minimum is 6,000? That would be good for Limited Run Games!!

lokamp
Sat May 13 17 03:57pm
(Updated 2 times)

Oi, don't give them incentives to make low-stock limited editions! My wallet can only stretch a little in a few choice directions haha

Just wait until they release Blaster Master Zero, Wonder Boy and Snake Pass as Limited Runs 8D

I can't believe that a simple disc costs more than $1.

When Blu-Ray was in its infancy, DVD's and CD's cost a few cents.

The cost of the blank blu-ray disc at wholesale must be less than a $1 at this stage.

You don't just buy the disc. It cost that in material to make, but there are other costs.

I know that but the above breaks down the cost for just the disc at several dollars per disc. At least that's my understanding.

Wii
Bulk Pricing of Single Layer Discs per each Disc:
Wholesale Price: $0 to $23.99 – Licensee Cost – Bulk Discs: $5.50

I'm reading that as each blank Wii Disc cost $5.50 which is absurd since they were DVDs.

I assume the prices also include distribution costs. Otherwise they are totally wrong.

They were proprietary discs by Nintendo based on DVD technology actually

Wii discs were DVDs.

The price is relative to the price of the game, so it's clearly not just a material cost, it include a kind of license. Why else would a disc for a 60$ game cost more than a 20$ game if the disc is the same, it doesn't cost more to make.

Then they a licensee cost separate so it's confusing what the numbers are trying to quantify.

Overall, a very poor illustration of whatever data it's trying to show.

Where it says wholesale price is what the game will cost to the public. Ie say it's Bayonetta, that's how much the game is to the public, whereas the Licensee cost is how much the developer or publisher had to pay per disc, as part of a bulk order of 6000. Not confusing at all.

elfteiroh
Sun May 14 17 01:11pm
(Updated 2 times)

It's showing exactly what it's trying to show. The cost of the medium doesn't matter, this is what is on the receipt when the devs/publishers ask for a certain number of physical copy of their games. THIS is what it cost the devs. (Well, supposedly, they may not be exact for PS4 and Switch, but still, it show the fact the devs doesn't pay just the material cost, but extra fees too. That shows why lot of indies have trouble releasing physical on all platforms.

[EDIT] Just read Jacktendo's post, and yeah, the Wholesale / Licensee prices are linked, they are like X and Y axis on a graph, so it's important to show them together like that. Didn't think of that possible source of confusion.

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