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potato_hamster on 25 October 2018
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DonFerrari said:
Miyamotoo said:

People, but no one from trusted sources said those things, espacily not people that I mentioned.

ZhugeX actualy said that you need less than 8GB card in order to have same profit margin like on BD for XB1/PS4. So with 8GB and espacily 16GB cart they have higher profit margin, not to mention 32GB carts cost that no one using because they are still too expensive. This post down sume up things more clearly

https://www.resetera.com/threads/are-carts-hindering-switch-reach-in-the-same-way-it-did-with-n64.36840/page-9#post-14045228

 

$5-10 more costs is definitely deal breaker because when we talk for instance only about 100k copies of sold game, we talking about $500k-$1m less of clear profit for 3rd party, for 500k sold games we talking about $2.5m-$5m of clear profit, for 1m sold copies $5-10m less of clear profit.. Nintendo would hardly take costs on itself or take smaller margin of profit, if they do that once than they would have same request from other 3rd party publishers.

That's also reason why some same games have higher price than on PS4/XB1, but problem is when we talking about $60 price point that game would have in any case, and you can't really gave price point of $70.

Sure 5 USD per cart when selling 1M copies is 5M less profit. Now how much profit you make selling 0? Because I'm pretty certain GTA V would make more profit by releasing it.

$5 x 10 million copies -=  $50 million dollars. Can't afford to lose that profit margin.

https://www.tweaktown.com/news/58516/gta-online-earned-1-09-billion-analyst-firm/index.html

What's that? GTA Online has made over $1.1 Billion as of 2017 on 80 million copies (at the time) of the game? That's nearly $14 per copy sold. I can't imagine how Rockstar could make up that $5 per copy in revenue. They'd definitely rather shelve a complete or near-complete copy of GTA V for Switch than eat a $5 hit on the profit margin on the front end. It'd be way more profitable to wait years for the cost to cartridge to decrease rather than try to make that up in GTA Online.

Makes sense.