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Ryuu96 said:

81% of Nintendo's software revenue came from first-party in the last fiscal year

Crazy stat and also Nintendo has the best profit margin of the 3 but rely 81% on their own 1st party (and a profitable hardware Tbf)

Meanwhile Sony's profit margins are razor thin and Xbox's ain't much better and that do they decide? DOUBLE DOWN ON $100m+ BLOCKBUSTERS!

Exactly, it's flawed thinking. If you look at the movie industry it's the same. A risk adverse culture where IP, sequels and franchises are considered the safe bet. Have a look at the movies that lost the most money last year. Most of them are sequels and franchises! 

https://screenrant.com/biggest-box-office-bombs-movies-2023/