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Abstract
In 1996, Nintendo is finalizing launch plans for the Nintendo 64. Two key decision remain. The first decision involves 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 concerns 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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Abstract
In 1996, Nintendo is finalizing launch plans for the Nintendo 64. Two key decision remain. The first decision involves 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 concerns 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.