| Dr.Henry_Killinger said:
That is an extremely naive way of understanding how any buisness operates. Every business in existence spends Money to make Money. Nintendo is no exception, paying for exclusive is no exception. To suggest that no money is made by spending money is extremely shortsighted. There is a reason there is a difference between gross profit and actual profit. Hell every console in existence was intially sold, manufactured, and distributed at a loss. Furthermore, it has inexplicitly been proven that Sony and Microsoft profit off a third party regardless of how much they've spent on it. If Sony spends 100$ to get 3rd parties and gets 1000$ in return, its better business than Nintendo who saved 100$ to loose 1000$. Do the math, thats +900 vs -900. Money not invested is Money wasted, that is bad for buisness. |
This is just your opinion. The facts state otherwise. Also, let me remind you that the original Wii sold at a profit on day one.
Paying for exclusivity only leads to a industry that expects manufacturers to pay in the future. It's not a very lucrative business model. When running a business, you want your investments to be a low as possible. Sony and Microsoft are struggling in that regard, despite what you say. You can sit here and say anything, but the facts will remain the same.
Also, Iwata once said himself, "Following and imitating others is the kind of reasoning that Nintendo tries to avoid the most, and while we certainly do not have a negative attitude toward strengthening our ties with third-party publishers, employing the same methodology as the other manufacturers would only lead to the most simplistic competitive approaches, such as price wars or money-giving that would never end. We would like to take a unique approach of our own and build sustainable relationships with our third-party publishers."
That's exactly what's happening now with the Xbone. Microsoft has been money-hatting 3rd party developers such as Crystal Dynamics while simultaneously dropping the price of the Xbone in the UK. As you can see, it's not helping it in the slightest. All-the-while, Microsoft is losing billions of dollars on their Xbox brand and are rumored to be considering the possibility of a spin-off.
