Why Nintendo won't go 3rd Party

[vivster]

TheLastStarFighter said:

vivster said:
This calculation is very flawed and in no way comparable to the current situation.

Nintendo doesn't sell nearly as much WiiUs as it sold Wiis. The profit margin is currently smaller and will get worse if they are forced to cut the price even more. Building and shipping hardware has more costs attached to it than making software.
Nintendo would sell more software when it goes multiplat.

Suddenly hardware is not nearly as profitable. If other developers and publishers are able to make a decent living of producing software, the software giant Nintendo easily can as well.

Can - yes, should - no.  Yes, Nintendo could be a smaller company selling games on other platforms.  But it would be completely stupid to give up the massive, easy royalty revenue stream.  Saying they should is stupid.  It's not about making a "decent" living, but as much money as possible.  Hardware is Nintendo's main source of revenue, and that's before even looking at the handheld side.

Even if Wii U sells like Gamecube, Nintendo 1st party should sell OK and the 1st and 3rd party royalites will be worth more than extra software sold on other systems could ever be.  Even if Wii U does poorly, they need to stay in the hardware game so that they can produce another console which can adress failures and sell more units.

Saying Nintendo should go third party is completely ridiculous.

I'm not saying it should (well actually I am because I want to play Mario on my PS4) but I'm also not saying that it shouldn't. The software business can be very viable and if they (or their share holders) decide it's time then it won't be much of a hit to revenue.

Looking at their current situation it's more viable than ever.