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Zekkyou on 17 April 2014
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Jay70sgamer said:
Zekkyou said:

Wii vs WiiU:

I'm sure that's all i really need to post to explain what i mean by "re-establish" :P

I'm not saying Nintendo are doing badly, just that they are currently on a downward spiral that they need to fix. Their presence in the home console market has pretty much collapsed, and their current handheld is lagging behind the DS both in hardware and software despite having no strong direct competition (which should be giving it higher sales, no lower). They even had to take a several hundred million loss to get the 3DS to where it is now :/

He made a stupid comment, so i replied with one in the same theme :P Neither Sony or Nintendo are really doomed at all, i meant purely that if this spiral continues Nintendo will be finding themselves in a bit of a pickle.

Just as you made that graph I can make a graph of the ps vita needing to "re-establish itself in the handheld market and yes nintendo did lose millions with the 3ds in the beginning but  they made that up also ,3ds doesn't have to sell as much as ds to make a profit because 3ds is sold at a higher price than the ds ....3ds is a beast number 1 in hardware and software in 2013 so that money they lost in the beginning is definitely a profit now because the price to manufacture the 3ds cost is down..so every 3ds sold is a profit ....my point both companies have a product that is doing well and one that is not doing as well.....for every playstation 4 profit you have the vita losing millions and for every 3ds you have wii u losing millions ....so both have to work on their products ..lets not make it a one sided affair ....and at the end of the day hardware sales doesn't matter as much because the most money is made in software ......

I didn't make that graph, it's from VGC ^^ But you're completely missing the point. Nintendo have always used their handheld division to sustain them when their home consoles are doing poorly. With the handheld market rapidly shrinking, by this time next gen it won't be able to sustain them at a level comparable to where they are now. Hence they need to re-establish themselves in the home console market, which is where things have thus far remains stable.

As i said, neither are doomed. Both are in-fact currently doing fine. I'm merely pointing out that Nintendo's reliance on the handheld market isn't healthy in the long run. The handheld market is the one shrinking, not the home console one. Being dominant in the sustainable market is considerably more favorable than the shrinking one :P

Nintendo need to either re-establish themselves in the home console market by next gen, or watch as their profits dwindle further from a failing handheld market. Even with the PSP Sony have never been big players in that market (the PSP sold a lot of hardware, but not much software). It's of little concern to them what happens to that market. Their cards are sitting with home consoles, and in that respect things are going perfectly.