Whats Next For Nintendo?

[Darc Requiem]

Angel_DwK said:

I know it may seem far out but Nintendo doesn't have to make a console and sell it at a loss to get into a dangerous situation..

For instance.. if Nintendo goes in with high expectations and sells horrible in both markets it would still be a bad situation..


regardless of their console being profitable.. lower revenue means lower profits.. I don't know how much they would have to pull in to stay afloat so I won't go much further into that but im sure they have expenses and if they fail to meet them they won't wait until they lose billions of dollars to start considering a third party transition..

I don't follow your logic. Nintendo's marketshare shrank for three straight generations and they continually posted a profit. The whole point of Nintendo's business model is the prevent a situation like Sony is in with the PS3. The Gamecube only sold just about 40% of Nintendo's projections and it was still profitable because every system they sold netted a profit. Nintendo's business plan doesn't require market dominance for success. The loss leader philosphy of Sony and MS do however. Ever piece of hardware Nintendo sells improves their bottom line, MS and Sony lose money on their consoles for the most part. The original X-box lost MS money on every sale. Sony didn't profit off of the PS2's hardware until year three. That is why even with the Gamecube finishing third, Nintendo was able to increase its cash reserves.