View Post
DonFerrari said:
Pyro as Bill said:

Does the Switch dock cost Nintendo less than the $60 Sony and MS charge to allow online multiplayer?

(I thought PS4 and XB1 both sold at a profit this gen https://www.techinsights.com/blog/playstation-4-vs-xbox-one-teardown-comparison)

Yes it does, and yes both Sony and MS are greedy on their charging of multiplayer (but not sure why you are asking since Nintendo isn't doing much better on charging for online are they?)

PS4 and X1 sold for a loss at the start of the gen. Sony said they broke even with one game and PS+ sold with a console. That is were the 50 loss per HW assumption comes from (there is no precise and official loss per HW).

Selling HW at a loss at the start of the generation is a strategy used for over 20 years on console world and have nothing to do with not being able to manage own finances or HW being undesireable.

One thing to keep in mind is that Nintendo has rarely sold at a loss with the 3DS and Wii U being exceptions. Nintendo, unlike Sony and Microsoft, relies heavily on its video game business because it IS their main business. Sure, they have theme parks, movies, mobile games on their plate, but they all revolve around the success of their IPs, which rely on the sales of hardware and software.

So Nintendo has little room to bleed money compared to the other two. Not to mention that they have more revenue to utilize, not just from their home console brands.