The success of the 3DS has vindicated Gunpei Yokoi and the Virtual Boy

[VideoGameAccountant]

PortisheadBiscuit said:

VideoGameAccountant said:

Nintendo didn't return to profitability until the Nintendo Switch. With the exception of FY 2014, Nintendo lost money from 2011 to 2016. This is probabloy the longest the company had gone with consecutive net losses. The 3DS was an adjunct failure and was the cause of Nintendo's financial difficulty. It's also Nintendo's worst selling handheld. So Nintendo focusing on 3D lead to Nintendo becoming unprofitable and trashing the company's handheld line. 

I think the 3DS in its own right was profitable for Nintendo after the first few years, otherwise it wouldn't still be on the market 6-7 years later. Other things IMO were contributing to Nintendo's losses after fy 2014. Having to develop a brand new system so quickly after a failing one (Wii U), Nintendo has never had to do that before. I'd imagine development costs for Switch's 4 juggernaut launch year titles would've drained them as well. 

Though I do think 3DS somehow contributed to Wii U's eventual failure. Nintendo pumped so much money into saving 3DS that they probably weren't willing to do the same all over again for Wii U. They kinda just hung it out to dry it seems. 

First, I did make a mistake in my first post. Nintendo saw losses in 2011 and 2013, and they only profited in 2012 due to exchange rates. That said, the other three years were very meager. Even compared to the Gamecube days, Nintendo was making less money. For comparison, Nintendo's Operating profit ratio (operating profit to sales) was around 20% in the Gamecube days. In the last three years of the 3DS/Wii U, it was around 4-6%.

The reason Nintendo wouldn't stop the 3DS is because the hardware industry is one where you have to make your bed and lie in it. Consoles take years to design and then promote and manufacture. Nintendo could not just flip a light switch and have the system ready. Switch took a minimum of two years (as Iwata told us it existed as late as Early 2015). If you want a good example of what Nintendo thinks of the 3DS's legacy, notice how none of the features of the Wii U or 3DS carried over to the Switch. Even think like the Virtual Console, a Wii era idea, are dead. Nintendo is destroying their legacy and only keeps the system around to prevent a sales crash. 

The reason Nintendo was gung ho about saving the 3DS but not the Wii U is because the handheld market is more important to them. They can afford to lose the home console race by comparison. The Wii U's life was so short because Nintendo is replacing home consoles with handhelds. The Switch released in the 3DS's 6th year.