The objective of this project is to analyse the
games on discount within the Nintendo eShop , with the aim of
deriving actionable insights and recommendations to enhance its efficacy
and user experience.
Nintendo, a pioneer in the gaming industry, has captivated audiences
worldwide with its innovative consoles and beloved franchises for
decades. From the iconic characters like Mario and Link to
groundbreaking consoles like the Nintendo Entertainment System (NES) and
the Nintendo Switch, Nintendo has continually pushed the boundaries of
gaming, delivering memorable experiences that resonate with players of
all ages.
Fast facts about Nintendo Switch (source):
With a rich history of creativity and innovation, Nintendo remains a
cornerstone of gaming culture, inspiring generations of gamers and
continuing to shape the future of interactive entertainment.
The Nintendo eShop serves as the digital storefront for Nintendo’s
gaming platforms, offering a diverse array of downloadable content
ranging from games to additional features and add-ons, all available for
direct online purchase.
The Nintendo’s
current offers page stands as a valuable resource for discerning
gamers seeking advantageous deals and discounted rates across a diverse
spectrum of titles.
The eShop is increasingly important for Nintendo; as of 2023, 48.2% of the games sold were digital
, marking a growth of 5.6 basis points since 2022 (source).
This trend highlights a broader industry movement towards digital
consumption, driven by the convenience and growth of online gaming
platforms. By improving the quality of the
current offerings on the eShop, Nintendo can potentially attract new
users and increase company profits. Ensuring a
high-quality digital marketplace is essential to meet consumer
expectations and capitalise on this growing digital preference.
In 1977, Nintendo revolutionised the gaming industry with the
introduction of their first gaming console, the Colour TV-Game 6. Fast
forward 26 years later, the landscape shifted once again with the launch
of Steam, an innovative gaming platform that would reshape how gamers
interact with their favourite titles.
Fast facts about Steam’s impact on the gaming industry (source):
The recent release of Steam’s handheld
gaming console marks a pivotal moment in the industry, signalling a
formidable challenge to traditional gaming giants like Nintendo
. With its vast library of games and widespread adoption, Steam’s
foray into handheld gaming poses an unprecedented threat, promising to
reshape the gaming landscape yet again.
Demo Video The
data presented here has been collected using web scraping softwares I
developed. The data colected on “04-06-2024” is
assumed to represent how Nintendo and Steam offer game discounts during
regular seasons.
Type | Total games | Metacritics infos | Overall success rate |
---|---|---|---|
Nintendo | 1000 | 863 | 86.30% |
SteamSpy | 200 | 196 | 98.00% |
I started by scraping for the current discounts directly from Nintendo’s
current offers page to obtain Nintendo’s discounted games. On the
other hand, scraping data from Steam’s current offers
page proved challenging and impractical due to the implementation of
a CAPTCHA system to block bots on their website.
To circumvent this, I adopted an alternative approach. I relied on
information provided by SteamSpy, a third-party website
that scrapes Steam discount data daily. The results from SteamSpy do
match those on Steam. However, SteamSpy only offers data for 200
discounted games at a time, despite not coverign the entirety of
discounted games on the platform, the dataset should still provide a
comprehensive comparison of the discounting strategies between these two
leading gaming companies.
Thereafter, involved mimicking unique Metacritic’s game
ratings by identifying its URL pattern to retrieve information about
the discounted games. Finally, I then exported the gathered data into a
CSV file, which would be ready for further data cleaning and analysis in
R.
glimpse(df_nin)
## Rows: 999
## Columns: 10
## $ title <chr> "Minecraft", "Minecraft Deluxe Collection", "Overcooked…
## $ original_price <dbl> 39.95, 49.95, 63.75, 22.50, 29.99, 26.00, 14.99, 29.99,…
## $ special_price <dbl> 19.97, 24.97, 15.93, 2.25, 2.99, 5.20, 1.50, 2.99, 13.5…
## $ meta_score <dbl> 82, NA, 81, 83, 76, 78, 90, 93, 81, 75, 70, NA, 70, 84,…
## $ meta_reviews <dbl> 63, NA, 40, 12, 36, 24, 89, 92, 8, 24, 56, NA, 56, 13, …
## $ user_score <dbl> 8.1, NA, 7.9, 7.9, 8.1, 7.9, 8.1, 8.3, 8.5, 7.5, 6.3, 4…
## $ user_reviews <dbl> 1496, NA, 188, 69, 264, 261, 655, 1108, 6, 22, 491, 4, …
## $ release_date <date> 2012-05-09, NA, 2018-08-07, 2020-08-27, 2013-05-22, 20…
## $ publisher <chr> "Microsoft Game Studios", "NA", "Team17", "Hello Games"…
## $ genre <chr> "Sandbox", "NA", "Arcade", "Action Puzzle", "FPS", "Arc…
glimpse(df_nin_cleaned)
## Rows: 320
## Columns: 11
## $ title <chr> "Minecraft", "Overcooked! 2 - Gourmet Edition", "…
## $ original_price <dbl> 39.95, 63.75, 22.50, 29.99, 26.00, 14.99, 29.99, …
## $ special_price <dbl> 19.97, 15.93, 2.25, 2.99, 5.20, 1.50, 2.99, 13.50…
## $ discount_per <dbl> 50.01, 75.01, 90.00, 90.03, 80.00, 89.99, 90.03, …
## $ rating <dbl> 8.1, 7.9, 7.9, 8.1, 7.9, 8.1, 8.3, 8.5, 7.5, 6.3,…
## $ popularity <dbl> 1496, 188, 69, 264, 261, 655, 1108, 6, 22, 491, 4…
## $ release_date <date> 2012-05-09, 2018-08-07, 2020-08-27, 2013-05-22, …
## $ publisher <chr> "Microsoft Game Studios", "Team17", "Hello Games"…
## $ genre <chr> "Sandbox", "Arcade", "Action Puzzle", "FPS", "Arc…
## $ discount_abs <dbl> 19.98, 47.82, 20.25, 27.00, 20.80, 13.49, 27.00, …
## $ release_date_numeric <dbl> 15469, 17750, 18501, 15847, 17015, 14811, 16981, …
user_score
was renamed to rating
.user_reviews
was renamed to
popularity
.(original_price - special_price) / original_price
.Nintendo and Steam hold significant sway in the video gaming sector,
operating as prominent oligopolies within the industry. Given their
substantial market presence, they wield considerable influence over
consumer choices and industry trends.
Consequently, it is crucial for Nintendo
to carefully monitor Steam’s pricing strategies . By
monitoring each other’s pricing strategy allows both Nintendo and Steam
to optimise their own pricing models, thereby maximising profits and
maintaining a competitive edge.
summary(df_nin_cleaned)
## title original_price special_price discount_per
## Length:320 Min. : 2.99 Min. : 1.500 Min. :10.00
## Class :character 1st Qu.: 17.99 1st Qu.: 2.990 1st Qu.:50.02
## Mode :character Median : 27.99 Median : 6.000 Median :75.03
## Mean : 30.52 Mean : 9.609 Mean :69.11
## 3rd Qu.: 37.50 3rd Qu.:14.172 3rd Qu.:86.44
## Max. :139.95 Max. :55.980 Max. :95.83
## rating popularity release_date publisher
## Min. :0.300 Min. : 4.00 Min. :2003-11-18 Length:320
## 1st Qu.:6.000 1st Qu.: 7.00 1st Qu.:2018-02-14 Class :character
## Median :7.000 Median : 17.50 Median :2019-10-06 Mode :character
## Mean :6.701 Mean : 95.82 Mean :2019-06-10
## 3rd Qu.:7.600 3rd Qu.: 46.75 3rd Qu.:2021-06-07
## Max. :9.000 Max. :5659.00 Max. :2024-05-23
## genre discount_abs release_date_numeric
## Length:320 Min. : 0.90 Min. :12374
## Class :character 1st Qu.:12.00 1st Qu.:17576
## Mode :character Median :18.60 Median :18176
## Mean :20.91 Mean :18058
## 3rd Qu.:26.54 3rd Qu.:18785
## Max. :99.00 Max. :19866
summary(df_steam_cleaned)
## title original_price special_price discount_per
## Length:88 Min. : 10.52 Min. : 2.829 Min. :10.00
## Class :character 1st Qu.: 30.08 1st Qu.:14.880 1st Qu.:30.01
## Mode :character Median : 45.12 Median :22.554 Median :42.53
## Mean : 50.17 Mean :25.005 Mean :47.48
## 3rd Qu.: 60.17 3rd Qu.:31.958 3rd Qu.:67.02
## Max. :127.88 Max. :89.509 Max. :85.02
## rating popularity release_date publisher
## Min. :1.200 Min. : 4.00 Min. :2017-07-20 Length:88
## 1st Qu.:5.975 1st Qu.: 12.75 1st Qu.:2022-10-17 Class :character
## Median :6.900 Median : 45.50 Median :2023-05-24 Mode :character
## Mean :6.633 Mean : 329.72 Mean :2023-02-14
## 3rd Qu.:7.700 3rd Qu.: 147.50 3rd Qu.:2023-12-01
## Max. :9.000 Max. :11546.00 Max. :2024-05-23
## genre discount_abs release_date_numeric
## Length:88 Min. : 1.505 Min. :17367
## Class :character 1st Qu.:11.172 1st Qu.:19282
## Mode :character Median :17.303 Median :19501
## Mean :25.162 Mean :19402
## 3rd Qu.:34.418 3rd Qu.:19692
## Max. :75.832 Max. :19866
# Nintendo's Standard Deviations
sapply(df_nin_cleaned[, c("original_price", "special_price", "discount_per", "popularity")], sd)
## original_price special_price discount_per popularity
## 19.126822 9.372573 20.487676 375.040420
# Steam's Standard Deviations
sapply(df_steam_cleaned[, c("original_price", "special_price", "discount_per", "popularity")], sd)
## original_price special_price discount_per popularity
## 24.78621 15.12164 21.27544 1328.75762
og_price_plot
sp_price_plot
Steam exhibits greater variability in both original and special
prices, indicative of a wider array of pricing tactics or a more diverse
product range. Conversely, Nintendo demonstrates a more uniform pricing
approach, with less variability observed. This
suggests more consistent pricing strategy by Nintendo, whereas Steam’s
pricing model appears more dynamic .
og_sp_price_plot
discount_abs_plot
cat("Mean absolute dollar discount for Nintendo: $", mean_discount_abs_nin, "\n")
## Mean absolute dollar discount for Nintendo: $ 20.91494
cat("Mean absolute dollar discount for Steam: $", mean_discount_abs_steam, "\n")
## Mean absolute dollar discount for Steam: $ 25.16204
cat("The p-value for the hypothesis test comparing discount absolute difference significane between Nintendo and Steam is:", p_value_discount_abs, "\n")
## The p-value for the hypothesis test comparing discount absolute difference significane between Nintendo and Steam is: 0.0617718
if (p_value_discount_abs < 0.05) {
cat("The difference in the absolute dollar discount between Nintendo and Steam is statistically significant.\n")
} else {
cat("The difference in the absolute dollar discount between Nintendo and Steam is not statistically significant.\n")
}
## The difference in the absolute dollar discount between Nintendo and Steam is not statistically significant.
For games originally priced between $50 and $100, Nintendo tends to
offer discounts better than half price, while Steam usually offers less.
However, the difference in absolute dollar discount is still
statistically insignificant. This suggests that
Nintendo may be prioritising discounts on their initially lower-priced
games. This strategy is effective because the potential loss from
discounting is minimal, yet it enhances the attractiveness of their
discounted catalog with significant percentage reductions.
To make Nintendo’s discount catalouge even more attractive, I
would advise Nintendo to feature a select few
games with substantial dollar discounts prominently on the first page of
their discount catalogue. These games don’t necessarily need to
be popular; the key is their significant absolute dollar discount, which
can grab customers’ attention. This approach can create the perception
that Nintendo offers deeper discounts in terms of absolute value
compared to platforms like Steam.
nin_discount_per_plot
steam_discount_per_plot
cat("Mean percentage discount for Nintendo: ", mean_discount_per_nin, "%\n")
## Mean percentage discount for Nintendo: 69.10941 %
cat("Mean percentage discount for Steam: ", mean_discount_per_steam, "%\n")
## Mean percentage discount for Steam: 47.48409 %
t_test_discount_per <- t.test(df_nin_cleaned$discount_per, df_steam_cleaned$discount_per)
p_value_discount_per <- t_test_discount_per$p.value
cat("The p-value for the hypothesis test comparing discount percentages significane between Nintendo and Steam is:", p_value_discount_per, "\n")
## The p-value for the hypothesis test comparing discount percentages significane between Nintendo and Steam is: 2.964001e-14
if (p_value_discount_per < 0.05) {
cat("The difference in discount percentage between Nintendo and Steam is statistically significant.\n")
} else {
cat("The difference in discount absolute between Nintendo and Steam is not statistically significant.\n")
}
## The difference in discount percentage between Nintendo and Steam is statistically significant.
Nintendo offers significantly more discount percentage than Steam.
The null hypothesis is rejected at the 5% significance level, suggesting
strong evidence that Nintendo offers statistically more percentage
discount than Steam. This may be a surprising finding to many gamers,
Steam gives consumers the impression that they’re
more generous in discounting their game’s than Nintendo, when in fact it
is not for most cases.
I would recommend Nintendo to align more closely with Steam’s
discounting model. This could involve
reducing most of their games to between 30% and 40% during
regular sales , with an average discount
mean controlled at approximately 50%. Conversely,
Nintendo could then create seasonal
sales by increasing the discounts to the current distribution, with most
games discounted at 80% to 90%, yielding an overall mean discount of
around 70% .
The introduction of seasonal sales could serve as an impactful
marketing initiative for Nintendo, enhancing brand visibility and
attracting new consumers. This strategic adjustment in discounting not
only has the potential to shape consumer perceptions of value but also
positions Nintendo more competitively within
the gaming market landscape, without offering more discounts than they
currently do .
rating_plot
The ratings of discounted games on Nintendo and Steam exhibit
similarities in both distribution and overall values. This indicates a
comparable quality of games offered at
discounted prices on both platforms.
popularity_plot
Most games on both Nintendo and Steam have minimal popularity.
However, Steam features notably more
popular games on discount compared to Nintendo. This
contributes to Steam’s reputation for offering more attractive discounts
than Nintendo. Hence, Nintendo may need
to consider discounting some of their popular self-developed games to
compete with Steam.
nin_top_genre
steam_top_genre
Both Nintendo and Steam effectively
target their respective audiences with their discount
strategies. Nintendo, known for its family-oriented
focus, discounts more on genres like 2D Platformer, Puzzle, and Party
games. In contrast, Steam, which caters to a more mature audience,
frequently offers discounts on genres such as Survival, FPS, and Sandbox
games.
nin_top_pub
steam_top_pub
Analysis of the top genres and publishers shows that Steam and Nintendo rarely discount the same games
simultaneously. This differentiation in
discounting items benefits both companies by reducing direct competition
in their oligopolistic market.
cat("Number of records in Nintendo model:", nrow(df_nin_cleaned), "\n")
## Number of records in Nintendo model: 320
summary(nin_model)
##
## Call:
## lm(formula = discount_per ~ rating + popularity + release_date_numeric,
## data = df_nin_cleaned)
##
## Residuals:
## Min 1Q Median 3Q Max
## -56.859 -14.702 5.973 15.157 31.778
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) 1.803e+02 1.876e+01 9.610 < 2e-16 ***
## rating -1.812e+00 8.051e-01 -2.250 0.0251 *
## popularity -4.723e-03 2.942e-03 -1.606 0.1094
## release_date_numeric -5.459e-03 9.833e-04 -5.552 5.99e-08 ***
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 19.5 on 316 degrees of freedom
## Multiple R-squared: 0.1027, Adjusted R-squared: 0.0942
## F-statistic: 12.06 on 3 and 316 DF, p-value: 1.709e-07
cat("Number of records in Steam model:", nrow(df_steam_cleaned), "\n")
## Number of records in Steam model: 88
summary(steam_model)
##
## Call:
## lm(formula = discount_per ~ rating + popularity + release_date_numeric,
## data = df_steam_cleaned)
##
## Residuals:
## Min 1Q Median 3Q Max
## -45.392 -13.770 0.114 13.501 33.846
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) 503.482872 90.077225 5.589 2.76e-07 ***
## rating -4.070327 1.280863 -3.178 0.00208 **
## popularity 0.001159 0.001532 0.756 0.45153
## release_date_numeric -0.022131 0.004698 -4.710 9.67e-06 ***
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 17.46 on 84 degrees of freedom
## Multiple R-squared: 0.3497, Adjusted R-squared: 0.3264
## F-statistic: 15.05 on 3 and 84 DF, p-value: 6.318e-08
In summary, both Nintendo and Steam employ
similar discounting strategies in nature. Higher game ratings
are correlated with less discounting, while the impact of popularity on
discount prices remains uncertain. Meanwhile, newer games tend to
receive lesser discounts. The statistical findings above coincides with
common industry beliefs. However, Steam’s model demonstrates a notably
higher R-squared value and more substantial effects of game rating and
release date. Suggesting that Steam has a
more refined discounting pricing model compared to Nintendo.
I advice that Nintendo reorganises its current offers based
on game popularity , as their current method lacks
sorting or filtering options, resulting in a cluttered layout on their
website.
Nintendo’s brand ethos revolves around delivering family-friendly
content and fostering a gaming environment that appeals to players of
all ages. However, explicit and niche genres
frequently appear in the top pages or even the first page of the
discount catalogue. To address this,
quantifying game popularity through external sources such as
Metacritic’s user reviews or utilising Nintendo’s internal sales data,
listed in descending order , particularly on the first
page, could significantly enhance user engagement with the discount
page, by letting customer’s view games that they’re more familiar
with.
I would also suggest that Nintendo
incorporate game ratings into their current offers page.
Personally, whenever I stumble upon a game that catches my
interest on the eShop, my initial step is to visit Metacritic
to review both the critic and user ratings. However, after repeating
this process for multiple games, it becomes cumbersome, leading me to
eventually stop browsing the eShop altogether.
While displaying game ratings may result in lower sales for poorly
rated games, it can significantly boost the
discovery and willingness to purchase highly rated ones.
Overall, integrating game ratings has the potential to enhance
user experiences and consequently increase overall sales on the
platform.
As of June 4th, 2024, Moby Games reports
that there are a staggering 11,031 games available on the Nintendo
Switch platform, which represents approximately 9% of their total game
library.
Given the overwhelming number of discounted titles, navigating through all 1,000 can be daunting for
users. To streamline the browsing experience and ensure better
visibility for discounted games, I recommend that Nintendo reduces the number of games on
discount at any given time to a more manageable 100 titles.
This adjustment would not only
facilitate easier exploration for users but also decreases the potential
discount-loss . Additionally, it’ll be easier for Nintendo to select the demographics and control
the discount games.
Nintendo’s approach to discount game sales
lacks clarity, leaving users uncertain about when to expect discounts.
Personally, whenever I visit the eShop, I often encounter a
frustrating situation: either finding many games still on discount from
previous visits or hearing from friends that I’ve missed out on game
sales I was interested in. Sometimes, it’s both scenarios
simultaneously, compounding the frustration.
To enhance this experience, Nintendo
could refresh the entire selection on a monthly basis.
Additionally, implementing proactive communication, such as sending out email notifications about the updated
discount catalogue on a regular basis, would greatly benefit
users like me, ensuring we stay informed and engaged with their
offerings.
Steam’s strategy of offering free games is a good marketing move that
keeps users engaged and coming back regularly to check out their
discounted offerings. Inspired by this approach, I would suggest that
Nintendo consider incorporating a similar tactic by irregularly placing one free game within the
top 10 pages of their website. This not only incentivises users to frequent their catalog but also
encourages them to explore the discounted titles available. By
enticing users with complimentary content, Nintendo can enhance user
engagement and drive traffic to their platform while also promoting
their discounted games effectively.
Steam’s marketing strategy, featuring seasonal special game deals
during events like Winter and Summer sales has proven to be remarkably
effective in drawing new users, particularly students, to their
platform.
The increase in interest during seasonal sales is substantial
compared to regular seasons (source).
To leverage this success, I suggest Nintendo
reintroduce discounted pricing for a broader range of titles,
encompassing at least 1,000 games, while also elevating the overall
discount percentage. This strategic move not only
attracts fresh users but also deepens engagement and cultivates loyalty
among current patrons, likely propelling the platform towards even
greater success.
Steam’s season sales includes:
Regular season sales often feature discounts ranging from 30% to 40%,
with fewer games offered at the highest discount tiers. However, Winter
and Summer Sales boast discounts frequently exceeding 50%, with many
popular titles available at 75-90% off.
The timing of these sales aligns with student holiday periods (summer
break and winter holidays), when they have more free time and are more
likely to indulge in gaming.
Regular sales receive moderate promotion through Steam’s homepage and
email notifications. Whereas seasonal sales are heavily marketed through
multiple channels, including social media, gaming websites, and
influencers. The hype surrounding these sales generates significant buzz
and anticipation among the gaming community.
Steam often incorporates community-driven events, mini-games, and
achievements that encourage user participation. For example, past sales
have included scavenger hunts or collaborative community goals,
enhancing user interaction and engagement.
Exclusive bundles and special deals are often available only during
these sales, providing additional value and incentivising users to
explore new games or genres they might not have considered
otherwise.
The time-limited nature of these sales creates a sense of urgency,
encouraging users to make purchases they might otherwise delay. This
strategy is particularly effective in converting hesitant browsers into
buyers.
In conclusion, Steam’s seasonal sales not only
offer substantial discounts but also leverage strategic timing,
community engagement, and exclusive offers to create an exciting and
immersive shopping experience for gamers worldwide.
Nintendo rarely offers discounts on their own
games, adhering to a pricing strategy which I respect. In
contrast, Steam, following the release of their handheld console “Steam
Deck,” offers significant discounts even on their acclaimed
self-developed game “Half-Life: Alyx (2020),” with reductions of up to
66% source.
With Steam entering the handheld gaming console market, Nintendo might need to reconsider their
strategy and start discounting their popular self-developed games to
regain market share in the near future.
In conclusion, the analysis of the Nintendo eShop discount catalogue
has yielded valuable insights and actionable recommendations aimed at
enhancing user engagement and overall efficacy.
Through strategic implementation of these suggestions, Nintendo could
effectively attract and retain customers while optimising their sales
performance.
Firstly, distinguishing between regular sales and seasonal promotions
enables better organisation and anticipation among users, while also
providing Nintendo with the flexibility to adjust discount strategies as
needed.
The proposed discount percentages for both regular and seasonal
sales, coupled with ordering the catalogue by popularity and introducing
a game rating system, promise to enrich user experience and streamline
navigation through the catalogue.
Furthermore, periodically refreshing the entire discount catalogue
and occasionally offering free games can inject novelty and excitement,
incentivising users to revisit the platform regularly.
Additionally, featuring a game with a significantly discounted price
on the front page of the discount catalogue can serve as a powerful
enticement for users, capturing immediate attention and stimulating
further exploration of available discounts.
Crucially, the insight into the importance of strategically selecting
games for discounts underscores the significance of thoughtful curation
in maximising the impact of discount campaigns.
Lastly, recognising potential competition from platforms like Steam,
especially with the emergence of the Steam Deck, emphasises the
importance for Nintendo to remain vigilant and adaptable in a rapidly
evolving market landscape.
In summary, by prudently implementing these recommendations and
remaining attuned to market dynamics, Nintendo can position itself for
sustained success in the digital gaming marketplace.