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BMaker11 on 31 March 2009
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Khuutra said:
BMaker11 said:
Khuutra said:

Now, now, don't skip ahead of me, that's not what I'm doing. Nintendo undoubtedly makes more than third parties. But let's take that $16 and do something interesting with it.

We can pretend that HD console third parties pay licensing fees low enough that they make the same amount per unit sold as Nintendo does - they don't, not even close, but we're going to pretend they do. Let's say, in this world where Nintendo gets $16 per copy of Super Mario Galaxy, that HD 3rd parties get the same amount.

Now, is this fair? Or, at least, if it's unfair, is it unfair in favor of the HD consoles?

It's unfair because your hypothetical is just fallicious. We know HD 3rd party games make less money per unit than an in-house Nintendo game. Hell, they make less per unit than a Sony/M$ game. It's apples and oranges. What you should be comparing is 3rd party Wii vs 3rd party HD

It's not apples and oranges. The only question is how much it takes to be profitable.

Can I say HD third parties make as much as Nintendo per unit sold? I know it's not true: I said it's not true. I'm trying to make a point that assumes HD console owners make more money than you think they do.

Can I assume this sixteen dollars, since it means fewer copies would need to be sold for HD third parties to turn a profit?

By HD console owners, I'm hoping you mean HD game developers because I mean, how can I (an owner of HD consoles) make more money than I think I do lol.

Anyway, I don't think you can "assume $16 per unit" because we know for a fact that for the most 3rd party games need to sell more than 1st party games in order to turn profit. We know for a fact that HD 3rd party games need to sell more than Wii 3rd party games in order to turn profit.

The main differences here are that 3rd party games have been generally successful on the HD consoles, and not so much on the Wii. So while the HD consoles do in fact need to sell more than the Wii, comparatively, they don't have a problem doing so. Wii 3rd party games I'm sure have some amount that needs to be met to make profit, but I'm sure 250-300k isn't it. Especially because the per unit revenue they make is much less than that of 1st party games