By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Nintendo Discussion - I hear a lot of people saying Nintendo can't afford to compete with a traditional console...

torok on 22 June 2015
RubberWhistleHistle said:


nintendo is actually a larger company than Sony, and both are insignificant specks compared to microsoft. i dont know why people have a hard time understanding this.

Nintendo is smaller than Sony. Talking about assets, Sony had 15 trillion yens, while Nintendo stands at less than 1.5 trillion. In market cap, Sony is worth US$ 35 billions, while Nintendo is worth 22 B. 

Sources:

http://finance.yahoo.com/q?s=SNE

http://www.marketwatch.com/investing/stock/ntdoy

https://en.wikipedia.org/wiki/Sony

https://en.wikipedia.org/wiki/Nintendo



Bet with jetforcejiminy: PS4 will pass the Wii lifetime numbers.

Around the Network
Train wreck on 22 June 2015
RolStoppable said:
Ultrashroomz said:
I'm pretty sure that they can afford it.

Problem is is that they don't really have the core audience of gamers, nor the good relations with third parties that would make a powerful platform worth it anymore.

The real problem is that having that core audience and good relations with third parties doesn't even make it worth it. People should really look at Sony's PS4 and how much profit they are making from gaming, but instead people get too distracted by sales numbers in comparison to the competition.

Nintendo profits are being bouyed by favorable currency, amiibos and not producing Wii U's (as they are still sold at a loss).  If you look at their sales, they have been declining... 5 years in a row if I recall.  Profits in a declining sales environment means your not makngn money on your bread and butter (which for Nintendo is software and hardware sales) but relying on outside forces or cost cutting.

Sony's video game sales are rising faster than their profitability as they are experiencing growth in their videogame division, they are selling the consoles they are making (very little margin), spending more on marketing (to remain #1).  Those cost are being offset by the influx of PSN money and game sales.  I'm sure any investor now would take Sony's situation to Nintendo's.  



Soundwave on 22 June 2015
RolStoppable said:
Train wreck said:

Nintendo profits are being bouyed by favorable currency, amiibos and not producing Wii U's (as they are still sold at a loss).  If you look at their sales, they have been declining... 5 years in a row if I recall.  Profits in a declining sales environment means your not makngn money on your bread and butter (which for Nintendo is software and hardware sales) but relying on outside forces or cost cutting.

Sony's video game sales are rising faster than their profitability as they are experiencing growth in their videogame division, they are selling the consoles they are making (very little margin), spending more on marketing (to remain #1).  Those cost are being offset by the influx of PSN money and game sales.  I'm sure any investor now would take Sony's situation to Nintendo's.  

If PSN money counts for Sony, then why shouldn't amiibos count for Nintendo?

But anyway, you only have a point if you focus on the present and ignore the future. In three years time we might see Nintendo handily eclipse Sony's profits again.

PS4 should be around 100 million in userbase in 3 years from now. They will be making a fortune just off third party royal fees at that time. 

That will be a tough task I think, unless Nintendo can double their handheld shipments from where they are right now back to where they were in at least the GBA years. GBA + GBC from 2000-2005 averaged a little over 18 million in yearly shipments, 3DS is hovering around 8-9 million now, if that's the "new normal" for Nintendo that's problematic. 

The GameCube was also likely far more profitable for Nintendo than the Wii U is, because there were hundreds of more third party titles, and remember it doesn't matter if the game sells or is some crap Barbie Horse Adventure game, Nintendo collects their $10 per copy licensing fee whether it sells or not. That's the whole point of being a platform provider. But the Wii U practically has no non-Nintendo retail releases aside from a handful of LEGO and Skylanders/Disney Infinity games. 

If Nintendo's smartphone games take off like wildfire though, who knows. That could be an avenue of huge profit for them. 



Train wreck on 22 June 2015
RolStoppable said:
Train wreck said:

Nintendo profits are being bouyed by favorable currency, amiibos and not producing Wii U's (as they are still sold at a loss).  If you look at their sales, they have been declining... 5 years in a row if I recall.  Profits in a declining sales environment means your not makngn money on your bread and butter (which for Nintendo is software and hardware sales) but relying on outside forces or cost cutting.

Sony's video game sales are rising faster than their profitability as they are experiencing growth in their videogame division, they are selling the consoles they are making (very little margin), spending more on marketing (to remain #1).  Those cost are being offset by the influx of PSN money and game sales.  I'm sure any investor now would take Sony's situation to Nintendo's.  

If PSN money counts for Sony, then why shouldn't amiibos count for Nintendo?

But anyway, you only have a point if you focus on the present and ignore the future. In three years time we might see Nintendo handily eclipse Sony's profits again.

Mostly because Nintendo is greatly diversifying themselves.  After the Wii/DS boom and subsequent collapse, I'm sure Nintendo doesn't want 99% of their sales and profits coming from gaming.  They already outlined Qol, possible tv tie up, toys and a theme park. 



Ruler on 22 June 2015
invetedlotus123 said:
Ruler said:


Difference is Apple is american and nokia is finish. Do you really think a finish or canadian (blackberry) company could dominate the smartphone market like android and apple are? Anything isnt possible. 

Apple was hyped up by US media and europeans followed that trend and other conspiricys happened at the time for sure, apple didnt innovate anything. Even in the console market the US cant except none americans rule thats why xbox exist in the first place.


Apple did revolutionize with the first iPhone, and than with the iPad, they`re products arent innovative anymore but they still at least great compared to other models. The iPod wasn`t the first mp3 player, but was the best of them at the time, and they made iTunes, wich was a revolution in how to buy music. The iPhone may have not been the first smartphone, but was the first good and accessible ( in a point of usability) for the great public. Look like how phone designs were 2 years before and 2 years after, and look at the post-pc revolution that followed.

Nokia mistake was, like every other phone maker at the time, to ignore the iPhone and not responding properly when there was still time.

For nintendo, they made a huge comeback with the Wii after two failures in home consoles, and made the DS, wich went to be the best selling handheld of all time. They still can get it right,  if they just stop trying to make a revolution and just a really good console with really good games from first-party and specs that making porting easier to get third-parties, it will do just great, may not dominante, but won`t bleed money.

 

For the comment that there needs to be US consoles and products for US publics, it just no the case. The best selling console of all time is ps2, and there were the xbox already at the time. They buy loads of cars made from eastern automakers, the second biggest phone seller is korean, the best selling console today is japanese, the best selling last gen was also japanese, best selling tv brands are eastern and go on...

And most used search engine is american and so are every OS and major website now, same with cpu and gpu powering these asian devices. 

- where was apple innovatve at the time? they forced you to use itunes to put music on their devices instead just copy and past them like every mp3 did. I think even today thats how itunes works. And that itunes is a recource hock.



Why i left PC gaming

 

(2015) Question for PS4 owners: if the situation would be reverse? would you still play on PS4?

(2015) The "I don't care PS4 is the most powerful console" thread

Around the Network
Ruler on 22 June 2015
RolStoppable said:
Soundwave said:

Pretty sure they stand to make a lot of money from the PS4 over the next 4-5 years. 

Sure, but it will be pitiful in comparison to what Nintendo made with the Wii. Investors also expect Nintendo to get to a level where they bring in $1 billion in profits every year and I don't think Sony is going to accomplish that with the PS4.

You do realize part of the reason why nintendo is so profitable and sony isnt is because nintendo isnt investing in many things like games, hardware and online infastructure for the future while sony is.



Why i left PC gaming

 

(2015) Question for PS4 owners: if the situation would be reverse? would you still play on PS4?

(2015) The "I don't care PS4 is the most powerful console" thread

invetedlotus123 on 22 June 2015
Ruler said:
invetedlotus123 said:


Apple did revolutionize with the first iPhone, and than with the iPad, they`re products arent innovative anymore but they still at least great compared to other models. The iPod wasn`t the first mp3 player, but was the best of them at the time, and they made iTunes, wich was a revolution in how to buy music. The iPhone may have not been the first smartphone, but was the first good and accessible ( in a point of usability) for the great public. Look like how phone designs were 2 years before and 2 years after, and look at the post-pc revolution that followed.

Nokia mistake was, like every other phone maker at the time, to ignore the iPhone and not responding properly when there was still time.

For nintendo, they made a huge comeback with the Wii after two failures in home consoles, and made the DS, wich went to be the best selling handheld of all time. They still can get it right,  if they just stop trying to make a revolution and just a really good console with really good games from first-party and specs that making porting easier to get third-parties, it will do just great, may not dominante, but won`t bleed money.

 

For the comment that there needs to be US consoles and products for US publics, it just no the case. The best selling console of all time is ps2, and there were the xbox already at the time. They buy loads of cars made from eastern automakers, the second biggest phone seller is korean, the best selling console today is japanese, the best selling last gen was also japanese, best selling tv brands are eastern and go on...

And most used search engine is american and so are every OS and major website now, same with cpu and gpu powering these asian devices. 

- where was apple innovatve at the time? they forced you to use itunes to put music on their devices instead just copy and past them like every mp3 did. I think even today thats how itunes works. And that itunes is a recource hock.

About iPod and iTunes, yes, it was a tie in software and hardware, but it also made the music library get really organizade whitout users having to make folders manually, and it was really nice at the time. The iPod compared to other mp3 players were intuitive, beatiful, easy to use, durable, and was backed by the iTunes store, that was a revolution on its own. Apple sense of usability is unparalled, and it took quite some time for Android catch-up ios ( even if today I stick with Android phones ). Also applies for macs and iPads, may not have been the first on their categories, but were the best and first to make it appealing to the average person that doesn't want to tinker on command lines, just to use the product as they want.

 

And for Nintendo, because this a Nintendo thread, not an apple thread and just used their example that is possible for a fallen company to comeback. They still can make it, they've found the point with Wii and ds. While they took the evolutionary route with 3ds and are doing just fine there and took the revolutionary route with the Wii u and flopped. 

 

And for major websites and all being western, well, this is somehow true looking for the WW picture, but there are chinese services that even so they are china only, they are so big there they bite a significant share of the global market.