Ka-pi96 said:
bowserthedog said:
True that Xbox owners buy the most of the game sales are 3rd party games which I believe Microsoft only receives 30% of the revenue from. The vast majority of game sales on the wiiu are first party games where Nintendo doesn't have to share the revenue. Nintendo is also set to benefit from amiibo sales which I expect to become a larger business than skylanders. We know that in the past when unit share has been similar like the original xbox versus the gamecube Nintendo made money and microsoft lost big. In this generation Microsoft will sell many more units than Nintendo which will make their losses less severe but but even if Microsoft outsells Nintendo hardware 3 to 1 I wouldn't be surprised if Microsoft makes less money than Nintendo. All reggie is suggesting is that he feels more comfortable with a differeniated product. Sony and Microsoft have the spend alot more in advertising and take many financial risks which Nintendo doesn't have to take as a result. Nintendo doesn't need to spend billions on advertising and doesn't need to do knee jerk price cuts because on a micro level they don't have a direct competitor. They don't have some other company out there which has 90% of the same games as they do to compete against. On a Macro level Nintendo has many competitors spanning from Apple and Amazon to Microsoft and Sony. I think you'd be very hard pressed to make a case that Nintendo would be better off competing directly against Sony and Microsoft. Nintendo is clearly better off with a differentiated product right now since they can't fall back on office and windows sales to weather a storm. Ask sega how competing directly worked out for them.
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Yeah, but with the Xbox 3rd party games Microsoft don't have to pay for any of the expenses yet still get a cut of the revenue. Nintendo has to pay all the expenses for their 1st party games. If a 3rd party game flops on Xbox, Microsoft still make money from it. If a 1st party game flops on Nintendo, then Nintendo has lost money.
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That is valid in theory. But the development cost of a 1st party Nintendo game is relatively low. I'd be surprised if Nintendo lost money on any first party wiiu games. Some of Nintendo's games have a large budget but these are rare. I could see Zelda U needing a couple million in sales to be profitable which it will easily acheive. I'm really surprised to see that people are trying to argue a case for xbox being more profitable. I thought it was a known fact to be a loss leader for microsoft which is way so many investers are calling for microsoft to sell off thier xbox division.
