The financials behind Nintendo going 3rd party

[ihatefatkatz]

Teeqoz said:

ihatefatkatz said:

But wouldn't it be better to reallocate those resource into making more content for their handheld? 3DS isn't teeming with games at the moment and chugging out games in a frequent maner will be harder as the future handheld games will be demand more time with the stronger hardware.

Hypothetically speaking, if home console market isn't viable for them anymore, dedicating their development resources into the handheld what be a better move than developing content for Sony and Microsoft consoles.

Take Mario Kart. One of Nintendo's huge sellers. They already make one Mario Kart for their handhelds, if they then make one mulitplat Mario Kart they would get huge sales from both their HHs and the multiplat release. 

10 million HH Mario Kart + 10 million (at least) multiplat Mario Kart > 10 million HH Mario Kart + 2 million HH smaller game.

I understand your point, as you are looking at a profit  (money making) point of view, but you are missing mine as (perhaps I wasn't clear). I was highlighting how going thrid party can be detrimental to Nintendo handheld business.

At the moment Nintendo has difficulties supporting two consoles. The 3DS and Wii U have had numerous droughts and hardware sales have suffered from it. This is true and has been well documented.

If, for example, Nintendo does drop the home console hardware business for next gen and develops for Sony/microsoft hardware, there's a high possibility that there handheld could suffer similar drought's. Making games for another platform, while your very own system suffocates from a lack of content isn't exactly a good long term business strategy.

Furthermore, I think feeding one console with regularly games can rejuvenate hardware sales for Nintendo.