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Soundwave on 14 July 2016
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Miyamotoo said:
oniyide said:
people keep bringing up royalties. that only works if 3rd party games are actual on the system to collect royalties, somethign that isnt the case for Wii U. 3ds does better but its not like those 3rd party games are flying off the shelves

Wii U is failing in every way and basically without any 3rd party, NX will definitely have stronger 3rd party support.

Regardless 3DS 3rd party, Monster Hunter says hi. :)

 

Soundwave said:

People need to stop confusing revenue with profit. 

Nintendo makes $20-$30 profit for one $50-$60 game, that's probably more than a $300 console, the hardware will inflate the revenue numbers because it's so much more expensive (one system can be the cost of 3-4 games), but games make the majority of the profit. 

Iam pretty sure Nintendo making more than $20-30 of profit for every sold unit of hardware, also you realise that Nintendo selling tons for addons for their hardware and they have huge profit margin for them, for instance Nintendo sold minimum 100m Wii Remotes with price of $50, and cost price of Wii Remote was $10-15, do the math.

$20-$30 take home is pretty standard actually for the hardware itself probably a bit generous for consoles to be honest. The Wii was a massive outlier (outdated hardware that Nintendo could mark up massively thanks to a controller gimmick), Wii U is more of a standard take home. 

Yamauchi himself often used to famously say the hardware is just something that's basically in the way, they want to sell games because that's where they make money. 

The success of Pokemon Go is a game changer though, if the plan was to kinda just make a few Nintendo apps that are just kinda small time side-story type things, I think that's been blown out of the water. They now have to take mobile very seriously and it may well be their no.1 profit driver in the future. 

Dedicated handhelds are declining (because that audience has been eroded away by mobile) and the console market has changed so much that Nintendo's style of console doesn't really fit where that market is today (violent shooting games with realistic graphics and sports sims dominate the market).