| RolStoppable said:
This reminds me of a recent post of yours where you stated that the whole point of consoles is to collect royalty fees from third parties. You did some maths (something along the lines of 50 third party games selling an average of 700k units) and came up with the result of $280m per year. Do you know what else amounts to $280m? A Nintendo game that sells ~10m copies. Suddenly royalty fees don't look that awesome anymore, because Nintendo sells a lot more than 10m first party games per year. IIRC a NeoGAF thread had cumulated data for the percentage of Nintendo's revenue that comes from third party royalty fees. It has been quite consistently between 5-7% throughout the years. This means it's more of a bonus rather than the main reason to make a console. Your 10-15m consoles sold reasoning has no merit when Nintendo's future is going to be more like Super Smash Bros. 4, a game that is available on more than one system. |
Between 5-7% of their total revenue? That's pretty sweet, actually. Considering it's a stream with almost no overhead, that should translate to a much higher percentage of their total profit.
