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Forums - Nintendo Discussion - If the NX doesn't come out in 2016, where will the "Nintendo-like" profits come from?

Nintendo's money is in the software, not hardware.



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I'm pretty sure the NX coming out next year is guaranteed at this point, with Zelda U being a cross gen game.



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Nintendo isn't like Apple releasing hardware the day it's announced, so I expect an E3 reveal and then they will launch the console in late 2017. Many people will feel betrayed if NX releases in 2016 and will hurt Nintendo's brand even more.



fatslob-:O said:
I don't think pushing mobile will reap "Nintendo-like" profits since that sector is known for being low margin ...

It's either release a new platform or go bust ...

Not every developer has low profit margins on mobile... Square Enix offers most of their game apps for $5 to $20 and many people accept these prices, even if they are much higher than the mobile average: http://www.pocketgamer.co.uk/r/iPad/Square+Enix+financial+news/news.asp?c=65323

Telltale Games' prices for episodes and season passes are the same on mobile as on PC and consoles. Many people accept these prices, even if they are much higher than the mobile average.

Nintendo as renowned developer will probably also use the premium pricing model for their apps and many people will accept that because they trust in the Nintendo software quality.



ARamdomGamer said:
They said they will give the NX a Nintendo like solution, but I don't remember them saying anything about 2016.


Question: In your presentation, you made it clear that in this fiscal year Nintendo would prioritize restoration of the balance of revenue and expenses. My question deals with the company’s mid-term prospects. I would like Mr. Iwata to tell us his current thoughts on what he would like the following two terms (the fiscal year ending March 2016 and the fiscal year ending March 2017) to mean for the company. Given that Nintendo already made a significant devaluation of inventory in the previous fiscal year, I suppose you are envisioning that the financial performance of the company is set to recover by some extent this fiscal year, but what are the key factors that will drive the business from the next fiscal year? Or, do you think that investment will expand yet again from the new businesses in and after the next fiscal year? Please tell us how you would expect the company’s financial performance to change from the next fiscal year.

Iwata: With regard to this fiscal year, I feel that it is essential for us to restore the balance of revenue and expenses that has been lost temporarily in order to gain trust in the financial markets. On the other hand, while it is difficult to talk about the next two fiscal years using concrete figures, I feel that in the next fiscal year
[read as 2015] we will be able to be more specific about the kinds of mid-term projects that we discussed at the Corporate Management Policy Briefing in January, and in fact, we will even start to offer some of them to the public. In the following fiscal year [read as 2016], I expect some of these measures to start serving as a source of profits for the company. In this sense, instead of seeing a great and sudden recovery in our profitability in the next fiscal year [read as 2015], I am rather expecting to be able to report Nintendo-like profits from around the following fiscal year [read as 2016].

http://www.gamnesia.com/news/iwata-doesnt-expect-nintendo-like-profits-until-2016#.ValoSvmz2Y8

 

it's vauge.  nintendo could have other things like the nintendo online service they seem to be preping for at the end of this year might have a subscription.  mobile.  amiibo.  QoL.  a combination of all such things.   ..but given what we know NX seems as likely a canidate as anything.



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GTstation said:
From games. By a major corporate shake up that achieves an entirely new company direction.

NX can coexist with Nintendo releasing on PC/PS4/Xbox. Mario Kart9 on those 3 and nx is a +30m seller.

They don't need to go multi-plat to sell 30 million+ copies of a game. Just ask Mario Kart Wii.



The answer to that is simple:

- Software sales, including the legs of the already existing sales
- QoL
- Mobile app games
- amiibo figures (including whatever retailers pay to get a figure as a exclusive)
- amiibo cards
- The amiibo NFC adapter for 3DS
- Faceplates
- Hardware sales
- DLC*
- Eshop sales
- Platform Royalties

All of that could lead to the "Nintendo-like" profits that Iwata-sama spoke about without the need of a new console launch. So no, the "Nintendo-like" profit forecars for the next FY doesn't mean anything about the state of the NX.

* Iwata-sama suggested that there was more MK8 DLC in the way, and we already know there are more SSB4 in the way that is going to be fan service by Sakurai's words.



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-1 = Negabeasting. -5= NegaRampage. -10 = NegaBurst

Conina said:

Not every developer has low profit margins on mobile... Square Enix offers most of their game apps for $5 to $20 and many people accept these prices, even if they are much higher than the mobile average: http://www.pocketgamer.co.uk/r/iPad/Square+Enix+financial+news/news.asp?c=65323

Telltale Games' prices for episodes and season passes are the same on mobile as on PC and consoles. Many people accept these prices, even if they are much higher than the mobile average.

Nintendo as renowned developer will probably also use the premium pricing model for their apps and many people will accept that because they trust in the Nintendo software quality.

I still wonder how many digital copies they'll sell at those prices on mobile platforms ... 

Nintendo will most probably use a somewhat premium pricing model for their games on mobile platforms and like you said, quite a few trust Nintendo when it comes to software quality but I'm still skeptical whether or not this will give them "Nintendo-like" profits ...



gatito said:
Nintendo isn't like Apple releasing hardware the day it's announced, so I expect an E3 reveal and then they will launch the console in late 2017. Many people will feel betrayed if NX releases in 2016 and will hurt Nintendo's brand even more.


The "lets show a system and make people wait 18 months for it" is a buzzkill that's totally going out of style. 

3DS, Vita, PS4, and XBox One were all unveiled/announced and released within a year. For the PS4/XB1 it was actually like 7 months from unveil to launch. No one wants to sit around for almost two years imagining a product that they can't use yet. 

Apple has it right actually. 

NX will have its first teaser in March 2016, formal unveil with playable games at E3 2016, and launch in fall 2016 IMO. Which is par for the course for modern game hardware. The "I'm not buying one" will change their tune once they see Mario Galaxy 3, Splatoon 2, Mario Kart 9, Animal Crossing Next, etc. etc. running on the new system, that's just a small group of people on the internet that more talk than action. 

If they're not launching until fall 2017, why even bother showing in 2016? Who's going to buy a Wii U in 2016 anyway when Nintendo's already shown their new system? If they're showing it in 2016, then they're launching it in 2016 IMO. Wii U sales are already awful, they would go down the toilet if Nintendo shows NX in 2016. 

So the whole "well they can show NX in 2016, they just better not release it in 2016 because Wii U" line of logic is stupid when you actually think about it. Once NX is formally unveiled, that's pretty much curtains for the Wii U, it's already weak sales will slow to a snail's crawl. 



Why would launching NX bring in Nintendo-like profits? Launching often does the opposite at first.

Oh snap, NX in 2015 confirmed.