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AnthonyW86 on 24 March 2013
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Mr Khan said:
AnthonyW86 said:
 

I don't like to say it but Pachter is so right on this one. The only reason Nintendo made a loss last year was because of Wii-U hardware costs. Also Pachter forgot one very important argument, it's not only about the very small profit they make on the Wii-U you also have to count for all the development costs that came before it's release.

Like he said going software only would be much more profitable for them, though i still think since Nintendo is doing pretty well in the handheld department they could try a Nintendo tablet.

I'm pretty sure they could make a nice deal with Sony or Microsoft where they would have to pay very limited royalty fees anyway.(they probably wouldn't have to pay them at all if they were to release exclusively for only one of them).

I would love a Nintendo/Sony collaberation and it would probably be better for everyone including Nintendo fans, since they would get great 3rd party support and very powerfull hardware.

They couldn't make such a deal (unless it was a matter of exclusivity) because they would be at Sony and Microsoft's mercy when it came to releasing console games. That's the reason why there's money in being a manufacturer; you control the gateways of distribution and make those royalty fees.

When Nintendo's hardware base is too insignificant to merit continuation, that also means that the strength of their software has declined to reflect that, which would mean they'd be in too weak of a position to do much as a third party in the first place. In the meantime, they'd have to trade off revenue from peripherals, the online shop, royalty-free first-party software, third party royalties, and actual hardware income, in exchange for *maybe* getting more software sales for Nintendo-published games only.

I think Sony or Microsoft would probably even want to pay Nintendo if they could get it's franchises on their system. Wichever system would get those games would become the dominant system for sure. That's why i think Nintendo working together with Sony in the future(it would probably take atleast 10 more years) could be interesting because it could make Japan dominant in the videogame industry again.

You have to remember that Nintendo is in a difficult situation right now with the Wii-U. They are not making any money and maybe losing slightly on every system sold, but the price point seems to high to get people interested. Besides on Wii something like 40% of all software sold was from their own studios, so the most money out of softawre came from themselvse. With Wii-U 70% of the total software sales so far are formed by NSMB U and Nintendo Land.

And back in the Gamecube day's Nintendo hade to severely cut the royalty fees to get other developers interested in their system, and this is something that i can see happening with the Wii-U aswell.