Begin to develop your budget, identifying the expenses that your proposed solution will have in the following categories. Start to research and explain the costs related to the expenses. Include research findings and facts and figures to support your statements.

1. Operational Expenses:
2. Sales, Marketing, and Distribution Expenses:
3. Legal Expenses:

Revenue Streams

The primary revenue stream will be all the Nintendo Switch games, this includes the physical copies and the downloadable versions as well.

 

The pricing for the game alone will be $80.00, This price was set due to the market research and considering the fact that the average price for a Nintendo Switch Game is $60.00. We also have to consider the fact that we have to cover the cost of production, marketing, and the deal The Eagles signed. By aligning ourselves with the average cost and industry practices, we will be able to stand firmly next to our competitors. The Eagles and their brand also offer a sense of exclusivity since they don't say yes to every branding opportunity that comes their way, so doing this collaboration holds a lot of weight and gives the sense of exclusivity and value which further justifies our price point.

 

Sales Projections

When determining how many units of the Nintendo Switch Game you believe will be sold, it's essential to consider various factors that can impact sales. Seasonal trends can significantly affect consumer behavior, for example, the holiday season often sees increased sales for gaming products as people buy gifts. On the other hand, summer months might experience a slight dip. Analyzing the current gaming market, especially for Nintendo Switch games is essential! Consider the popularity of existing titles, trends, and whether any blockbuster releases might compete with your game. Evaluating the competition landscape, of course, is something you have to analyze as well. Understanding the competitive environment is crucial for setting a reasonable price point and projecting sales. Another step is examining the market share. This can provide insights into the potential demand for your game, and consider how price-sensitive your target audience is. When it comes to collaborating with The Eagles, determine how much value and exclusivity this collaboration adds to your game, and if it justifies the higher price point. With that said, by thoroughly researching and considering these factors, you can develop a more informed estimate of how many units your Nintendo Switch game is likely to sell.

 

Nintendo recently disclosed its financial results for November 2023, encompassing the initial six months of the current fiscal year. The report (Nintendo CO.,2023) highlighted robust performance, with net sales reaching 796.2 billion yen, operating profit standing at 279.9 billion yen, and ordinary profit totaling 380.0 billion yen. Notably, Nintendo Switch hardware achieved a cumulative total of 132.46 million units, with the breakdown indicating 6.84 million units sold during the period, compromising 1.25 million Standard Switch units, 4.69 million Switch OLED units, and 0.90 million Switch Lite units. Key Software releases, such as The Legend of Zelda: Tears of the Kingdom, and Pikmin 4, contributed to the success, with hardware sales growing by 2.4% year-on-year to 6.84 million units and software unit sales increasing by 1.8% year-on-year to 97.08 million units. The digital business flourished, recording a 15.8% year-on-year increase in digital sales to 217.5 billion yen, aided by the popularity of downloadable versions and add-on content for Nintendo Switch. Overall, the international market contributed significantly, accounting for 78.3% of total sales. Nintendo remains focused on expanding Switch adoption and sustaining player engagement through continuous software releases, including recent titles like Super Mario Bros. Wonder and Detective Pikachu Returns, with upcoming releases like WarioWare: Move It! and Super Mario RPG expected in November (just released). Additionally, plans for add-on content, such as The Indigo Disk for Pokemon Scarlet and Pokemon Violet in December, aim to further invigorate the platform. By combining all of these insights and conducting a thorough analysis of the provided data by Nintendo, we can develop a comprehensive projection model. Of course, we would have to regularly update the model based on real-time market dynamics, such as sales over the upcoming holidays, consumer behavior shifts, and any additional information that becomes available through research.

 

Information that is not available to us is how many people have old Nintendo consoles, for example, The Nintendo Switch, that they just don't use anymore. These items could be thrown into a box and over time forgotten about. We will need to assume in order to complete the sales forecast that instead of digging out old games, people would rather go to the store and purchase a new and improved version of what they may have had. Andrew Beattie from Investopedia writes in reference to new video game technology, " There will also be further experimentation with controls, such as adding voice, touchscreens, and gestures to game mechanics"

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To develop a budget for the proposed solution lets break down the expenses into the following categories and discuss the associated costs Operational Expenses Operational expenses refer to the daytoda... View the full answer