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chakkra said:

Ok, this is a question that has been bothering me for a while now. Just like the title says, why Nintendo doesn't care about installed base?

I often see MS and Sony willing to make sacrifices and to take losses as long as they put as many consoles as possible in consumers' houses. So maybe a better question would be why Sony and Microsoft care so much about it? Of course I am no expert, but I think the main reasons for them wanting a bigger installed base are: 1) Brand recognition and 2) The money coming from software.

Now, I can understand (to a certain extend) Nintendo not caring about the first one, since the Nintendo brand is historically a really powerful brand. But what I can´t understand is them not caring about the second one. I mean, out of the three companies, Nintendo is the one that makes more software, so if there is someone who would benefit from a bigger install base, that is Nintendo. I mean, do you think that Mario Kart Wii would have sold the same if the Wii had had an installed base of 40-50 millions? Or that SM3DW would have sold just 2.4 millions so far, if the Wii U had an installed base of 15 millions to date?

Where I want to get is, if there is one company that should be willing to take losses on hardware in order to have a bigger installed base, that is Nintendo. But they seem more focused in the short term profits, and IMO that is not a very smart move.

Is there something I am not seeing? maybe is MS and Sony the ones who are overestimating the value of installed base? Which approach do you think is gonna prevail in the long run?

PS: Please forgive my english (and any grammar correction will be welcomed)

Didn't the Wii U started being profitable like a couple of months ago? = Nintendo's problems come from some other place... we could discuss about it but that's not what this thread is about :)

Also what seniorfarts said