routsounmanman said:
shoichi said:
Companies like Microsoft and Sony, work differently compared to Nintendo.
Nintendo has for the past couple of console generations decided they want to make revenue per each console sold at launch or with minimal "outside costs"(a single game, or accessory difference). Which is why they sell lesser specced consoles but usually cheaper than competitors because they still can because of the specs. Almost the same way as companies like Samsung and Apple work with their smartphones (they like revenue for each device sold) although they work towards the high spec-high price route. While companies like Microsoft and Sony don't mind taking a loss on the console at launch if it means more powerful specced systems and make revenue from the services (XBL and PS+), along with the licenses for each game sold on the system. Eventually making money on each console once the component prices go down.
Nintendo probably could have released the Switch with Nvidia's Tegra X2 chip (more powerful and efficient than the X1) but probably felt they wouldn't make enough per system without increasing the cost of the Switch by $50 or so, which could have been beyond the pricepoint they found reasonable.
Nintendo has $47 billion in marketcap, Sony has $48 billion in marketcap including their tv, electronics, and movie divisions apart from the gaming division. Both companies can handle a system or two of losses.
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So just because they have money in the bank, that means they should bleed left and right to go on an arms race? It's bad business and harms the industry in the long run (superficial consoles, demand for extravagant graphics, expensive games, studios closing).
PS: I agree on the X2 point; they should have definitely go the extra mile for that chip.
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Yet both PS4 and X1 destroyed the WiiU in sales and the Switch won't come close to either. Having good hardware is great business and these games wouldn't exist without it. Studio closures are apart of every industry and more studios closed during the 80s and 90s. Do your research. You don't need an arms race to make great hardware. PS4 was not very expensive to make and it's old hardware now. Yet Nintendo didn't match it though it would not have broke the bank. In the end you are just making excuses for weak hardware when it should have been stronger. As far as Nintendo being more financially stable than Sony. Um Sony makes more products than just games. As for their games division, PSN is making more money then the whole of Nintendo.
