Nintendo Is More Brilliant Then I Thought

[menx64]

RolStoppable said:

Nintendo is brilliant, but in a very different way. They are taking revenge on third parties.

During the seventh generation Nintendo decided to go against cutting edge graphics in order to keep development costs of games down, both in home consoles and handhelds. This was done to benefit the entire gaming industry (minus Sony and Microsoft, of course) and in return Nintendo themselves by getting more and better third party support than in the past. What actually happened is that third parties for the most part used the DS and Wii to cash in and then funneled those profits into projects for the HD consoles, because those expensive games couldn't sustain themselves. Sure, there have been numerous hit games on the 360 and PS3, but for the longest time they couldn't cover the losses of all the failures (and there were plenty on the HD consoles).

So what is Nintendo's reaction? They put out eighth generation systems that don't sell to the mainstream and up the development costs. Now when the next round of gaming machines is available third parties won't have a safety net. Nintendo has proven in the past that they can operate a profitable business even if their hardware sales are less than good. Third parties haven't, so most likely one after another of them will go down in flames, unless they find a way to nickel and dime the "hardcore" enough to make up for all their expenses.

  Those are very very wise words, I agree 100%