I hear a lot of people saying Nintendo can't afford to compete with a traditional console...

[Train wreck]

RolStoppable said:

Ultrashroomz said:
I'm pretty sure that they can afford it.

Problem is is that they don't really have the core audience of gamers, nor the good relations with third parties that would make a powerful platform worth it anymore.

The real problem is that having that core audience and good relations with third parties doesn't even make it worth it. People should really look at Sony's PS4 and how much profit they are making from gaming, but instead people get too distracted by sales numbers in comparison to the competition.

Nintendo profits are being bouyed by favorable currency, amiibos and not producing Wii U's (as they are still sold at a loss).  If you look at their sales, they have been declining... 5 years in a row if I recall.  Profits in a declining sales environment means your not makngn money on your bread and butter (which for Nintendo is software and hardware sales) but relying on outside forces or cost cutting.

Sony's video game sales are rising faster than their profitability as they are experiencing growth in their videogame division, they are selling the consoles they are making (very little margin), spending more on marketing (to remain #1).  Those cost are being offset by the influx of PSN money and game sales.  I'm sure any investor now would take Sony's situation to Nintendo's.