Ka-pi96 said:
Dulfite said:
In my opinion the only reason Nintendo hasn't left the console business altogether is because their handheld business model is so freaking successful that they have enough money to try and score things like the Wii. The 3ds costs way less than the wii u to make (the new 3ds probably doesn't cost THAT much more to develop than the originals, yet it is more expensive by a good amount) and they are selling it for more of a profit than the wii u is currently. The 3ds games probably cost 1/4-1/2 (at most) the cost to develop compared to the HD wii U games, yet they are typically sold for $40 (which is roughly 2/3 - 4/5 of what Wii U games are sold for when brand new). Nintendo makes an INSANE amount of profit off their 3ds business and Microsoft could produce/develop cheap games that sell JUSt as well and profit an INSANE amount more than their HD games.
Look at the modern pokemon, youk watch, puzzles and dragon type games on the 3ds. They are a JOKE in terms of difficult to make and resources required compared to games like HD Halo, FF, or Zelda, yet they sell MILLIONS more than any of those games most of the time. Handhelds are the way to go for profit, because consumers (including myself) are just too dumb to realize we are buying games that are considerably less visually impressive than the HD ones at a price point that is laughable, yet we do it anyway lol.
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That's fine for Nintendo, but I still don't see any appeal for Microsoft. If they wanted to make games on a smaller budget they could easily do so on Windows or for Mobiles, both of which are markets they are in themselves (so no platform royalties) and both of which have much larger install bases than any handheld.
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Games on 3ds sell for (typically) $40. App games typically are free, but most probably cost $1 and MOSt people don't spend money on microtransactions but let's just say that people spend enough on microtransactions to bump up the average money made from each game $5 per person (I think that's fair), that would mean that Microsoft's app game would have to sell 800,000 units in order to make the same profit that a $40 game could make with only 100,000 units sold on the 3ds. Now, which one of those sounds more logical? You could argue the cost of development for app games isn't nearly as much but that is simply wrong. Look at pokemon on the 3ds and tell me that game cost more to develop than temple runner lol.
