| OfficerRaichu15 said: ahh port begging you people realize that there profits could decrease dramatically right? |
The Wii U hardware does not turn a profit. Nintendo software, on the other hand, probably has the highest profit per title of any software in the entire industry. Sales versus production cost for many Nintendo games has to be insanely good. That's what analysts and investors are looking at. IF Nintendo went third-party and could sell the same volume, they would probably be the most profitable company in gaming not named Valve.
However, there is no lock that they would sell the same volume without owned platforms pushing their games and captive audiences. I think game sales and IP value would decline over time, though they should still continue to be quite profitable. Hardware brings the potential for crazy profit, as with the Wii, but it also brings the potential for losses despite strong software sales, as with the Wii U.
Pachter actually raises a good point here, though, with regards to Nintendo being behind the curve. He thinks, as do many others, that the dedicated gaming console industry is going to change dramatically and that Nintendo will be so behind that they will never see it coming or adapt in time. Given the state of the Wii U, there is some degree of validity to that concern.
