Vena said:
huiii said:
Wow.... you're not serious are you?
Revenue =/= Profit
Profit = revenue - expenses
So if Ninty drop the console buissnes they make less revenue but also have less expenses (and considering the wiiu is or was sold at a loss the drop in expenses would be bigger than the revenue loss so profits would grow (or at least the retability would)).
i say this in every thread about finances and stuff but people need to get a clue about accounting before they go posting stupid stuff.
|
I am talking about profits, so don't make baseless assumptions. You should go look at their last 20-30 years of financials if you don't think that their hardware is a massive part of their profit margins as well as a synergistic machine for their software profits on which they earn 80% of the proceeds or, if digital, 100%. If they go third party all of that literally goes out the window.
Money lost on R&D is next to negligible over all. The rest of the money spent still has to be spent whether they are first or third party, and now they have even more expenses including having to pay licensing fees and tool kit fees which will eat up another 5-7$ a pop on each sale. Suddenly their profits per sale on software goes from 80-100% to 20-40%, if that.
|
You're totally exaggerating. $7 out of a $60 game is 12% so I don't know how you are going from 80% to 20%???
Also development kits are not that expensive, and they can be reused for a generation. It accounts for way less than 1%.
