If its profitable,nothing(Buisness wise,profits matter more than sales,guys,realise it finally,the high sales are more important for the brand value/prestige,it's more possible to exit the market if you sold 80m and lost 3b$-4b$ -especially when you don't recoup it either from other business of yours or other ways and it damages you-...Than have a 15m seller which made only profit for you...)Gamecube with just 21.74m was a very profitable console,for some people a commercial flop,but financially it was undisputedly a success,which is impressive given its two massive price drops in 2002 and 2003 respectively,Nintendo controlled the extra-costs exceptionally then!
Nintendo has the financial strength to stand many commercial flops yet and if they aren't financial flops too,forever,also they're stubborn,it won't be very easy to go third party,it's extremely beneficial selling your own software,on your own platforms(5.11m Mario kart 8 on a 9.5m installbase,WOW),sega went third party,it was their only resort,it was running out of money and did they profit from that?Now they focus on mobile gaming..
Nintendo is in the right direction,theme parks,mobile games featuring their popular/iconic characters,amiibos e.t.c i.e surplus money,they are expanding fortunately!So they can support their home console business no matter the sales size,its handhelds console are still strong taking into account the intense indirect competition from smartphones!
The main problem of wii u,was the losses it made in 2012 and 2013 not the low sales,it was the first ever Nintendo home console to make a loss,and the second ever Nintendo hardware,the first was 3DS and its big price cut back in 2011 to skyrocket the sales that weren't meeting the expectations and they achieved it,which alone wasn't pernicious since the 3DS was still by 70$ above its manufacturing cost(Guess what was the mistake of Nintendo,way high marketing,labour packaging,disturbution costs),Nintendo reversed the negative situation of 3DS in 2012,later,wii u came and sadly put them again in trouble for two years consecutively,Nintendo repeated the same mistakes with 3DS but that was worse because it was combined with
low sales!
However thanks god in 2014 Nintendo returned to full year profit,not that the problem was severe,providing that Nintendo has much cash in the bank,great properties(Amiibos is a proof,they exploited their barnstormer characters and look now,they are selling like hot cakes,it hasn't caught the younger audience,it is selling in the overwhelming majority to grown-ups but anywise Nintendo gets rich,Nintendo has shown that everytime has an ace up their sleeve),immense tangible assets,but losses are better to be avoided,inverstors usually aren't very lenient with them!
How Nintendo managed to screw up such a lot and in their long history they had their first losses in 2011-2012-2013...All that needs,is to ensure that NX will be sufficiently profitable/not making a loss ever!Let's say that it only sells 10m,if it makes enough money though,no harm,no foul!







