| Miguel_Zorro said: It appears to me that there are a few groups circling around this. Hard core Nintendo fans who don't want them to go third party because they see going third party as a failure for some reason, Nintendo haters who want Nintendo to go third party because they see it as a failure, and a small group of people who are willing to discuss the legimate pros and cons.
That almost sounds like an argument to go third party.
I was impressed with Nintendo's cash on hand when that article came out in February 2012, Nintendo had 818.8 Billion Yen in the bank. By March 31, 2012, they had 407 Billion Yen in the bank. By March 31, 2013, they were back up to 469 Billion Yen By March 31, 2014, down to 341 Billion Yen By March 31, 2015, down to 281 Billion Yen By March 31, 2016 down to 258 Billion Yen So 68% of that cash on hand that was supposed to last until 2052 is gone. Which is actually meaningless if you really understand cash flow. Ultimately, the decision should come down to this - will Nintendo be more profitable over the long term as a third party game publisher, or as a console manufacturer/1st party publisher. My math on that decision consists of estimating the incremental third party sales, subtracting out any console profit, and substracting out any royalties as a platform owner. Those estimates will vary wildly, but for most people in the case of the WiiU they should lean to the third party decision, but perhaps not in the case of the Wii, where they made a lot of money on the console itself. |
I don't see how it can be seen as an argument for them to go third party at all, it's the exact opposite. What I meant was, all the people saying "Nintendo should go third party becuse their hardware sales are doing bad right now" don't seem to realize that even with a console that is a failure saleswise for Nintendo, they make it back up and more with software sales. So it shows that they are still better on their own hardware, even that hardware itself is not selling tremendously the software makes up for it.
I don't understand the whole logic or question of "Will Nintendo be more profitable as if they went third party or sold their own hardware", because the same things can exactly be said more Microsoft, Sony, or any other company. If any company releases games on every single platform of course they will all make more sales. that's an obvious yes answer. Why do you think Minecraft is as big as it is today? I don't know why people seem to specifically call that question to Nintendo most of the time, when it's the same for all companies, people just really want to play Nintendo games without buying the hardware I guess.
As of right now it's too soon to jump to a conclusion anyway, you would have to wait a few years at the very least and see how this all works out.
