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'Super Mario Run' iOS News: Should Nintendo Switch To Microtransactions To Succeed?

'Super Mario Run' iOS News: Should Nintendo Switch To Microtransactions To Succeed?

J Rose

Nintendo's latest addition to the long running "Super Mario" franchise, mobile game "Super Mario Run," is coming up in a few days. In a surprising move, the game company giant is offering its newest title for a flat rate, instead of the usual microtransaction popular amongst most mobile apps. But is it a good move for them?

How Much Will It Cost, And Will There Be Any Additional Charges?

The app will be available on the App Store for free, and those who want to unlock more stages would need to pay a one time amount of $9.99.

Nintendo president Tatsumi Kimishima said that the game only needs a one off fee to be able to play it as much as they want.

Taking about the upcoming game during a financial presentation in October, Kimishima said, "Downloading Super Mario Run will be free, as will some of the play elements. All of the game content will be enjoyable after paying a set purchase price."

"With our current plan, once a set purchase price is paid, consumers can repeatedly play the game without worrying about additional fees required," the Nintendo president confirmed. "So, children can also play it with peace of mind."

This comes as a huge relief for parents who are afraid that their children may abuse in-app purchases without their knowledge, a common issue with app providers for the longest time.

Nintendo's Strategy Can Be A Game Changer

Choosing to offer a one-off fee for "Super Mario Run" may look like a bold move from Nintendo, as most mobile apps rely on microtransactions to stay afloat financially. The company may have done the right thing, however, according to market analysts.

"Offering a free game with an option to unlock all the available content for just $9.99 will appeal as a pricing point to many," Neil Campling, head of global technology, media and telecoms research at Northern Trust Capital Markets, told CNBC. "Many successful mobile games, such as 'Clash of Clans' by way of example, have seen an annual spend of over $100/year/gamer."

"So to set a low incentive (zero to try) and then a low total cost when engaged could set Nintendo on a differentiated path which, ultimately, could be a game changer to address a wider audience," he concluded.

Super Mario Run" will be released on iPhone and iPad devices in 151 countries and regions on Dec. 15. The app will also be released on Android devices, although there is still no set date for it yet.

There are also rumors that "Super Mario Run" will possibly come to the new Nintendo Switch, although this information is yet to be confirmed by the company.

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