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Soundwave on 22 June 2015
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RolStoppable said:
Train wreck said:

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.  

If PSN money counts for Sony, then why shouldn't amiibos count for Nintendo?

But anyway, you only have a point if you focus on the present and ignore the future. In three years time we might see Nintendo handily eclipse Sony's profits again.

PS4 should be around 100 million in userbase in 3 years from now. They will be making a fortune just off third party royal fees at that time. 

That will be a tough task I think, unless Nintendo can double their handheld shipments from where they are right now back to where they were in at least the GBA years. GBA + GBC from 2000-2005 averaged a little over 18 million in yearly shipments, 3DS is hovering around 8-9 million now, if that's the "new normal" for Nintendo that's problematic. 

The GameCube was also likely far more profitable for Nintendo than the Wii U is, because there were hundreds of more third party titles, and remember it doesn't matter if the game sells or is some crap Barbie Horse Adventure game, Nintendo collects their $10 per copy licensing fee whether it sells or not. That's the whole point of being a platform provider. But the Wii U practically has no non-Nintendo retail releases aside from a handful of LEGO and Skylanders/Disney Infinity games. 

If Nintendo's smartphone games take off like wildfire though, who knows. That could be an avenue of huge profit for them.