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Teeqoz on 30 July 2015
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fatslob-:O said:
Teeqoz said:

But amiibo are also tied to how much hardware you sell.... And this isn't last gen we're talking about, this is current gen.

Anyway, Nintendo made almost as much revenue from their own software compared to their own hardware, and the margin is deffinitely higher for 1st party software than hardware, so a pricecut would make especially much sense for a company like Nintendo.

Amiibo's are also implicitly tied to brand strength too so there's a possible limit to how much you may maximize profit from them and my mentioning of last gen is just reference ...

How do you know if Nintendo can significantly further their software revenues by just sacrificing profit on the hardware side when their left with 2 blockbusters left for the rest of it's life ? If the consumers didn't bite the WII U last year with it's biggest titles what makes you think a price cut is long overdue ? 

It would've made more sense last year to do the the price cut then rather than now since it would've been riding on the momentum of MK8 to maximize hardware and software shipment volume ...


Because Nintendo titles have insane legs.

Mario Kart 8 shipped 320k this quarter, Splatoon shipped 1.62 million this quarter, and will undoubtedly ship a lot in the next quarters, Super Mario 3D World shipped 200k this quarter, Nintendoland shipped 200k this quarter etc. and these are games that released quite a while ago (with the exception of Splatoon). I think there is reason to believe that these titles will continue to ship substantial numbers, and given that MK8, SM3DW, Splatoon and Smash are the titles "every" new Wii U buyer will want, or every parent will buy for their kids, it can pay off for them to cut the price, depending on what their current margins are.