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Azzanation on 28 September 2016
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Slimebeast said:
Azzanation said:

Money can come from all sorts of avenues. Online fees, software sales, accessories etc. Hardware doesn't necessarily lead to profits. Hardware sales can mean little if it cannot sell its products/fees.

Console future depends on more than just hardware sales. Nintendo Gamecube, WiiU and Orginial Xbox are proof of that.

But all of those revenue sources are proportional to the amount of consoles you sell.

With 40 million consoles sold you will sell roughly rufly double the online fees, softwares and accessories than the guy who only sold 20 million consoles.

I agree to a point. Hardware CAN lead to more sales in other avenues, however that doesnt always mean double the hardware = double the games sales or profits. MK8 on WiiU for example has sold 6.94m copies on a console with 11m sold compared to DriveClub selling 2m on PS4 with over 40m consoles sold or Forza 5 at 2.18m on a console with 20m sold. (All VG Numbers)

Now consider that PS4 and XB1 sell at a loss of $1 per every console sold compared to the WiiU which profits $1 for every console sold. Who is making more money? (Just to let you know that those numbers are just made up examples, i dont know the exact numbers per console sold/profit) Its safe to say Nintendo sell hardware at a more comfortible level compared to the XBox and PS brands.

MK8 ($60) x 7m = 420,000,000 WiiU - 11m = profits $1 per-console = 11milion profit = Total 431,000,000

DC ($60) x 2m = 120,000,000 / PS4 - 40m - lose $1 per console = 40million loss (Excluding Online Fees) = Total 80,000,000

FM5 ($60) x 2m = 120,000,000 / XB1 - 20m - lose $1 per-console = 20million loss (Excludiong Online Fees) = 100,000,000

I didnt include online fees for a good example on how hardware sales dont mean better profits. This is only a rough example and many gamers dont see past the sales numbers. We all know PS4 and XB1 have online Fees which greatly increases there profits per year but for a Hardware and Software profit comparison, in this case Hardware doesnt mean much if you have sold the most consoles.

Selling the games has always been the most important, and this is why Nintendo will stay alive for a very long time. Selling hardware has a chance to increase software sales but that remains as always a chance. The games have to do the talking not the consoles. You dont need to crack the 50m+ console sales to make it in this industry. Aslong as you have the ammo to stay alive.