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Nintendo doesn't plan on offering in-store bonus items for digital games, may change in the future
We are not currently planning to initiate the digital download sales with physical special features. This is because one of the advantages of this sales method is that retailers can sell products virtually without any inventory risk by making use of technology called POSA (Point Of Sales Activation). POSA is a computerized system where a product has no inventory value until it is processed by the POS register, and retailers have no trade payables accrued for a product until a consumer actually purchases it. More specifically, this is the system used for the Nintendo prepaid cards on the shelves at convenience stores (in Japan). We expect that digital download sales will make it easier for retailers to have a product available in their shops even when they are not certain about its sales potential.
In fact, one of the challenges in the video game distribution industry in Japan is the higher inventory risk; it is a bigger challenge than ever before. Since it is common practice in this industry that retailers take the inventory risk, their profits from good sales can be easily wiped out by surplus stock. Therefore, when the sales pace of a game with a short lifespan is slower than expected, it is reasonable for retailers to reduce their prices. Previously, a retailer’s price cut was rather independent from others, but nowadays the information on a price markdown at one store is likely to affect other retailers in no time through the Internet, which results in a collapse of the market price. Consumers tend to see such a product as one with a bad reputation. In this way, some games which might have had commercial value lose their sales potential just because the proportion of the number of sales in the first week to the number of shipments is relatively small. On the other hand, something quite opposite is also happening; in fear of this, more retailers are eager for the minimum inventory levels. When you visit a store for a game only to hear from the clerk that it is now out of stock and the next shipment will not be until three weeks later, you will be discouraged to buy it. The demand sometimes does not lead to actual sales, like in the case I just mentioned. The reason we will start the digital download sales is that decreasing the inventory risk will be of great benefit to the video game business. As some consumers are still keen on physical special features attached to only the first copies of games, both Nintendo and other publishers will try various measures to satisfy them. First of all, however, we would like to show the public the number of “New Super Mario Bros. 2” or “Onitore” (temp.) have been sold by download so that those in this industry can make the next move after finding out the consumer behavior toward download versions. When they know the size of the digital distribution market, they might be inclined to accept a certain inventory risk to try the download sales with special features. I am afraid we cannot say anything specific today and we need to carefully manage the download sales with special features because, as I mentioned, they are not a good combination in some aspects. In the distant future, furthermore, it might be a valid business model to deliver physical special features to consumers at home after they have bought something by download. We hope to continue to explore various possibilities. - Satoru Iwata
Link
In fact, one of the challenges in the video game distribution industry in Japan is the higher inventory risk; it is a bigger challenge than ever before. Since it is common practice in this industry that retailers take the inventory risk, their profits from good sales can be easily wiped out by surplus stock. Therefore, when the sales pace of a game with a short lifespan is slower than expected, it is reasonable for retailers to reduce their prices. Previously, a retailer’s price cut was rather independent from others, but nowadays the information on a price markdown at one store is likely to affect other retailers in no time through the Internet, which results in a collapse of the market price. Consumers tend to see such a product as one with a bad reputation. In this way, some games which might have had commercial value lose their sales potential just because the proportion of the number of sales in the first week to the number of shipments is relatively small. On the other hand, something quite opposite is also happening; in fear of this, more retailers are eager for the minimum inventory levels. When you visit a store for a game only to hear from the clerk that it is now out of stock and the next shipment will not be until three weeks later, you will be discouraged to buy it. The demand sometimes does not lead to actual sales, like in the case I just mentioned. The reason we will start the digital download sales is that decreasing the inventory risk will be of great benefit to the video game business. As some consumers are still keen on physical special features attached to only the first copies of games, both Nintendo and other publishers will try various measures to satisfy them. First of all, however, we would like to show the public the number of “New Super Mario Bros. 2” or “Onitore” (temp.) have been sold by download so that those in this industry can make the next move after finding out the consumer behavior toward download versions. When they know the size of the digital distribution market, they might be inclined to accept a certain inventory risk to try the download sales with special features. I am afraid we cannot say anything specific today and we need to carefully manage the download sales with special features because, as I mentioned, they are not a good combination in some aspects. In the distant future, furthermore, it might be a valid business model to deliver physical special features to consumers at home after they have bought something by download. We hope to continue to explore various possibilities. - Satoru Iwata
Link