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Forums - Nintendo Discussion - Lets count $$$ Nintendo makes per person for its paid online?

dx11332sega said:

So theres 20 million Switch owners I'll guess like 10 million are gonna pay online per person . If I multiply 10 million to 20 dollars then Nintendo makes 200 million easy money for Nintendo right ? What are they gonna use that money for? I'm guessing for Nintendo vacations instead of better online though I could be wrong ?

 

Edit:Is my math right guys ?

I doubt the number of Switch owners opting for the online is that high. I expect 30% not 50%.



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Lots of talk about family accounts... any confirmation those accounts dont have to be tied to the same system?



Well lets break it down - a good 30% chunk will have to be dedicated to server maintenance. Probably around 15% for security. 10% for employee salaries. Another 15% for replacements and backups. And that leaves the last 30% for company profit. I also just made all of this up on the spot so dont quote me on this or expect any sources, for all I know this is entirely wrong.



CaptainExplosion said:
Yerm said:
Well lets break it down - a good 30% chunk will have to be dedicated to server maintenance. Probably around 15% for security. 10% for employee salaries. Another 15% for replacements and backups. And that leaves the last 30% for company profit. I also just made all of this up on the spot so dont quote me on this or expect any sources, for all I know this is entirely wrong.

But what if that turns out to be really accurate?

i doubt we will ever find out the actual distribution percentages, but if we do and i was right, i will shit myself



CaptainExplosion said:
CarcharodonKraz said:
Lots of talk about family accounts... any confirmation those accounts dont have to be tied to the same system?

Don't know, but it's cheaper to buy a 12 month subscription for you and several other people than just for yourself.

Maybe I can get my parents and brother on board.

Yeah. Then thatd be good for u. Seems like some people are expecting to have multiple consoles on 1 family plan. Im just suggesting to those ppl not to make that presumption before u have that info confirmed.



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Well at end of gen if they keep price they may make over half billion a year with it.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

mZuzek said:
CaptainExplosion said:

So they can be accounts accessible on multiple systems?

*sigh* from the UK Online Service FAQ:

My family members use their own Nintendo Switch consoles.If we purchase a Family Membership, can we useth the Nintendo Switch Online services from any of the Nintendo Accounts on any of the Nintendo Switch consoles?

Yes, you can. Even if your family members are using their accounts on different Nintendo Switch consoles, if you have a Family Membership and create a Family Group, then each account can use the Nintendo Swich Online services. You don't need to use the same Nintendo Switch as the person who purchased the membership.

LOL! That was entertaining seeing ur patience tested XD Seriously tho, thanks for including a source. I hadnt caught that info and ive watched all the directs since the system launched. Thought the explanation was vague. I must of missed something.



My assumption is that most folks will actually do the family plan for $35 and share it with actual family and friends. I know I'm going to do it that way and no I won't with any of you. :P

Though in the end, I'm betting they'll pull in well over $200MM in revenue less the costs for the infrastructure they need for the app, networking, cloud saves, etc. They have to be building up better networking infrastructure for online gaming otherwise this entire path is stupid. I'd expect to see it making a difference over the next couple years.



Yeah, (from previous last comments)... I'm really excited Nintendo is finally showing that they are tying everything to an NNID vs the hardware. I figured that was what all the eShop changes were for over the last several years but surprised it wasn't as such on the WiiU. Now they need to just let the visible friend code ish die off. NNID is all that is needed and the FC can just be an back-end ID behind the scenes.



VAMatt said:
Also, I doubt that half of switch owners will pay for the online service. I certainly won't. Nintendo just doesn't have as many of the traditionally online games. They have Mario Kart, Splatoon, and smash. I don't know about smash so much, but Splatoon and Mario Kart can be enjoyed quite a bit without online play. I played the hell out of Mario Kart 8 on Wii U, and almost never played online. I'm certainly not the only person.

Umm I'd say like 95% of Splatoon's worth is in online play. Mario Kart and Smash have much more utility offline. So Splatoon is very dependent on online (smart by nintendo), Smash is HUGE online since its an esports type of game, and Mario Kart I'm sure gets a good amount of online usage though probably a lot less than the other two. And obviously there's a bunch more online games. By end of the year there will be like 7.5 million Splatoon owners, for those 7.5 million people there will be basically no reason to own Splatoon if they don't have Switch Online. Sure some of them don't play anymore but still I'd say by end of year Splatoon alone will mean like 5 million people get the online service. Smash by itself will probably convince at least a couple more million to get online in December/January who otherwise wouldn't get it yet.

A couple things to remember:

It's only $20 a year! That is nothing. I'm sure a lot of people who say now they aren't gonna get it are at some point gonna want to play Splatoon in the future, or are gonna want to play some Mario Kart or Smash or check out the NES games with online functionality or play sports games online or a ton of other games online in the future and they'll be like well for $20 sure what the hell. If it was like $60 it'd be different, as you could buy a full priced game for that, but $20 is easily an impulse buy cuz you feel like playing online some night so ya figure ya why not.

Yeah there are 20 million owners now, and I doubt half of Switch owners will buy the online service, at least not at any given time, but in 6 months there will be about 30 million Switch owners, in 16 months there will likely be just under 50 million Switch owners. So there aren't gonna be 10 million Online subscribers this month, but in 6 months there might be that many or more and end of next year there will wayyyy more than that.

 

Eventually this will probably bring Nintendo mid-hundreds of millions of dollars revenue per year, and low-hundreds of millions of dollars profit yearly, since they'll have extra costs of running the service like more servers and people working on bringing more NES and other older games to the service with online functionality.