thismeintiel said:
ICStats said:
superhippy420 said:
ICStats said:
Don't believe everything you read on the internet.
Sony has double the equity of Nintendo, and growing.
Nintendo's profits are actually hanging by a thread. 3DS has good revenues, but who knows how long it will maintain this level. Meanwhile Wii and DS are also still contributing a lot to their revenues. As the Wii and DS fade away if the Wii U can't fill the void they will start losing cash big time. Nothing will bankrupt Nintendo any time soon, but they could significantly scale back their position in game consoles.
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It's all about the 1st party software sales. Nintendo only sold 22 million Gamecubes but sold over 70 million is 1st party software. Sony sold 80 million PS4's but only sold 95 million in 1st party software, not to mention that they made more games. Sony makes nothing off of every PS4 sold, and Theif and Killzone combined have been outsold by SM3DW. Trust me Sony would much rather be in Nintendo's position right now. Playstation Now exists solely because Sony is desparate to make money off their software.
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You're completely wrong.
1st party games cost money to develop and market. When they sell they could make a loss, break even or make some profit depending on sales. Never 100% profit when you subtract the costs.
3rd party is almost pure profit, and they make up ~90% of Sony's sales.
You think Nintendo is happy that SM3DW outsold Killzone, but Wii U sales are still languishing? Woot, Nintendo made sales of $30~40 mil or something. That ought to keep a company that costs $1.6 billion to operate going. Not!
Getting the user base up to 10s of millions, and getting far more titles out than a few 1st party titles a year is needed.
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This. Plus, I think Sony is going to enjoy when the PS4 is actually being sold for decent profit and they are selling 10's of millions fo them. And like you said, they have all that profit rolling in from 3rd party games on their system, which for the most part are outselling their One counterparts due to higher install base and having the superior versions of those game. If things continue the way they are with sales, 3rd parties are also going to be more likely to develop exclusives for the PS4 (without incentives from Sony), as it will cut down on costs, allow them time to exploit the HW to its full potential, and get an extra hype push from being an exclusive.
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I hate being right all the time 
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Nintendo's revision of around a $200 million loss this FY is I think a sign of what I was saying. Even with the 3DS doing well, the Wii & DS revenues are dropping and Wii U is not able to fill that void. This will result in the need for Nintendo to scale back their console development, possibly retarget those teams to other platforms like smart phones. Although TBH they could probably port their in development Wii U titles to PS360 & PS4ONE and recoup their costs, as well as make a lot of fans happy who would otherwise not play their games.
Realistically, Sony and MS will also be going through some similar losses as the PS360 businesses shrink and PS4ONE take some time to ramp up, but at least they likely have a future to new revenues in the next few years.
