Prediction: "Cartridges" will return for the Nintendo home console

[noname2200]

RolStoppable said:

noname2200 said:

RolStoppable said:

Nintendo's dilemma is that handhelds are more popular than home consoles in Japan while in the rest of the world it is the other way around.

I'm not convinced this is actually true, to be honest, at least not for Nintendo. I know the media coverage in the West focuses almost exclusively on home consoles, but generation by generation Nintendo's handhelds have sold more than their home consoles. This is true even in North America, where home consoles are the strongest. Admittedly I don't have the profit figures of handhelds vs. home consoles at hand, so it's certainly possible that they still make more money off home consoles than handhelds, but I'm skeptical of that. I'm reminded of the GBA and Gamecube era, where even the GBA's brief era was sufficiently profitable to overwrite the Gamecube's pathetic existence. 

Let me put it another way.

If Nintendo decided that they will only make a handheld from now on, then Japan would be fine with that, but the rest of the world would not.

Or yet another and probably better way: If you look at tie ratios of video game systems, then in Japan they are similar between home consoles and handhelds which means that handhelds sell more software due to the higher amount of hardware they sell. But outside of Japan, tie ratios for home consoles significantly outpace the tie ratios for handhelds. Based on these buying patterns, it would be a mistake to not make a home console because it poses the risk that there are lot of consumers who would outright refuse to play games on a handheld. And of the people who game on both kinds of devices, we can quite safely conclude that they would prefer to play on a home console if presented with the choice.

For your information, the total amount of software sold worldwide is similar between the Wii and the DS, despite the latter selling approximately 50% more hardware.

If Nintendo is serious about pleasing as many consumers as possible, then they have to continue to make handhelds and home consoles. That's what the Iwata quote regarding consumer preferences is about. A one-size-fits-all approach will not work.

But is the tie ratio discrepancy big enough to overcome the additional handheld units that are sold? Not to mention that handheld development is cheaper and faster, although admittedly the difference for Nintendo's purpose is probably not controlling. Essentially, I'm wondering whether the home console is actually more important to Nintendo than the handheld.

I think Nintendo's actions show the assumption here isn't as strong as it first looks. When the Gamecube was going through hell, Nintendo still took its time to create the Wii. When the handheld dominance was potentially challenged, Nintendo rushed the DS to market to meet the challenge, notwithstanding that the GBA was doing great and was barely at the traditional console peak. Doesn't this imply Nintendo itself values its handhelds more than its home consoles? I fully concede there are other factors involved in both areas, but I do have to question the assumption.

The part about the Wii-DS tie ratios admittedly does shed some helpful light on the subject. I wonder though if that's an aberration: so much (about both systems) was.

All that said, I do agree that they'll continue to cater to both markets for the foreseeable future.