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Seece said:
Purple said:
Seece said:
Purple said:
Seece said:
Nah, they would need to sell twice the amount of software, on platforms that have 3 fold the competition.


Ahh this old myth. Care to explain why you think this would be the case?

Which part?

Why they'd need to increase their software sales.

Because they would need to give a portion of their profits to Microsoft and Sony?

From my understanding, First party games net you 60% total sale, third party net 30%.

For starters there are plenty of other alternatives to releasing titles on Microsoft and Sony platforms. But if they do go that way the platform royalty payments are nowhere near 30%. The highest estimate I've seen is ~11%, and that figure is lower for full price titles from large publishers. Nintendo could avoid royalty payments entirely by selling their titles exclusively on one console provider.

They'd lose the royalty payments they receive of course but that would be offset by the massive savings by cutting R&D and losses made on selling the console.