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Soundwave on 14 July 2016
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Miyamotoo said:
Soundwave said:

$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 The Wii was a massive outlier (outdated hardware that Nintendo could mark up massively thanks to a controller gimmick), Wii U is more of a standard take home.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). 

Nintendo always making profit on hardware (actually Wii U was first console with they had small loss at launch), IMO they always targeting about $50 clear profit per unit not $20-30. And you totally ignoring profit they making from addons for their hardware, that actually is huge.

Nintendo taking money whenever they can not only on software, especially this gen, hardware, software, Amiibos, toys, mobile games, themed parks, movies...so its very obvious they expanding their company and their business to different markets, they will definitely not abandon everything else and just be focused on software, that includes hardware market also.

Pokemon Go doesn't change anything for Nintendo really, because they already have plan entering mobile market, and plan is to release 5 internally developed games buy 31. March 2017, after that we will definitely see more Nintendo mobile games. Those games are specifically games designed for mobile platforms,that is one reason more why Nintendo will not not abonde they dedicated platforms, because are quite different.

Console market and espacily handheld market changed, but that doesnt mean Nintendo will abonde hardware market because those changes, they will change approach also, they saying NX is something totally new and different. Unified platform we talked about several times before easily could be success for Nintendo, in that way Nintendo could earn equal or more money like before but with less resources and investments for instance.

Point is that Nintendo can have they dedicated hardware platform and strong mobile presence in same time, with Amiibos, toys, themed parks, movies...and thats best way to go and that exatly Nintendo is doing.

I think Pokemon Go is a watershed/stunning moment for Nintendo.

Definitely now they have to look at seriously at whole host of possibilities that maybe they weren't thinking about before. 

Mario Kart iOS/Android? Do you leave $1 billion+ sitting on the table or is it time to start considering that? You have to start taking a lot of things more seriously.

Animal Crossing Mobile likely just became their most important game in development from a business POV too ... I'm guessing they are probably scrambling to make sure that is an app worthy of that brand because it could become a huge money maker for them. This idea that mobile would just be this little supplemental revenue stream for them has been completely flipped on its head (though I predicted this, I didn't forsee it happening so quickly). 

The success in mobile is most definitely a game changer, I think even Nintendo themselves is probably stunned at Pokemon Go. I think they were expecting something bigger than Miitomo, but the biggest mobile game since Candy Crush? A bigger than Minecraft sized potential megahit? The biggest gaming story of the year? That is shocking. 

It calls into question a whole bunch of things though, namely has Nintendo held back the potential of their IP by hiding them away on their propietary platforms? 

NX will proceed, but it probably now has a much shorter leash, if it isn't successful fairly quickly, Nintendo has this huge goldmine that they're sitting on that they will have no choice but to exploit moreso going forward. 

Pokemon Go is the biggest thing to happen to Nintendo in a decade. This is the mainstream breakout hit they've been dying for, the fact that it comes on a non-Nintendo hardware platform(s) has serious implications though.