Forums - Nintendo Discussion - Why Nintendo won't go 3rd Party

I think this ties in with this: http://gamrconnect.vgchartz.com/thread.php?id=176382&page=1



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Weil es eine Bereicherung ist eigene spiele auf einer eigenen Konsole von Nintendo zu spielen. Du bist ein ziemlicher Ignorant, und wahrscheinlich kleines Kind, weil du nicht die Anfänge von Nintendo kennst und Nintendo einer der Vorreiter waren, die für das Wachstum der Konsolen verantwortlich waren. Ignorant!!



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In all honesty, it is all up to the shareholders at this point.



>Release all old games on Android and iOS
>Easy as hell to pirate
>Nobody will pay the money Nintendo expects from VC sales

Seriously this would be a huge short coming... the level of piracy would soar, and Nintendo would no longer take a cut of the hardware necessary to run these VC games... right now if you want them, you have to own a WiiU first...

Also, by doing so, they would undoubtedly have to lower the price, which means lowering the value of their product, and less money per sale.



 

 

 

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This calculation is very flawed and in no way comparable to the current situation.

Nintendo doesn't sell nearly as much WiiUs as it sold Wiis. The profit margin is currently smaller and will get worse if they are forced to cut the price even more. Building and shipping hardware has more costs attached to it than making software.
Nintendo would sell more software when it goes multiplat.

Suddenly hardware is not nearly as profitable. If other developers and publishers are able to make a decent living of producing software, the software giant Nintendo easily can as well.



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Agreed.
There´s no point for Nintendo go 3rd party right NOW, that wouldn´t help them anyway - only increase their expenses - since PS4 and XboxOne players really don´t care about Nintendo. They have their own audiences, just as Nintendo. And we still don´t know what the future holds for the market now that the casuals flocked away from console gaming.

Maybe in the future, in 6 or 8 years or beyond, depending how the market will develop, Nintendo may eventually go third party..... for mobile and PC/tablet gaming.....



Arcturus said:
TheLastStarFighter said:

 

Hardware Total Profit per unit Total
100.95 $49 $4,946,550,000
Total Software Royalty per unit Total
913.5 $7 $6,394,500,000
Total income from hardware business: $11,341,050,000
Nintendo Software Publisher share Total
312.84 $27 $8,446,680,000

Note that their are a few assumptions made, first of all that the profit per Wii was/is $49.  It was reported that Nintendo was making $13 in Japan, $49 in the US and $79 in Europe per Wii soon after launch. That may not be totally accurate, but it's a good estimate.  Secondly, prices on both software and hardware get reduced over time... but the relative dollars should be at least somewhat consistant, and costs go down too.

Something to consider: How much of that profit per unit goes to the recovery of hardware R&D costs? How much does Nintendo spend on hardware R&D? That cost would be eliminated if they went third party.

It's not clear in your table, but does the figure for total software (913.5) include first & third party software? If the figure includes first party software, are you doubt counting profit from your line the shows just Nintendo software (312.84)?

Resumably R&D of harware costs money, but so does game developement.  We don't know numbers, but we do know they have much more staff in the game design area than the hardware area, so that factor would probably make the hardware side even more important...probably getting up to the 65% of their business that Nintendo says.

The total software includes the Nintendo software.  The line from the Nintendo software does NOT include the the royalty portion, only the "publisher" portion.  In other words, Nintendo makes extra money off of their 1st party software, but only because they are a hardware platform holder so that money is on the hardware side of revenues.



They're far too big of a company to go software only.

They're a $25+ billion company, to put that in perspective, Rockstar is like a $1.5 billion company even with the no.1 third party franchise.

They're also just spent a ton of money on a giant new development center in Japan (new office for Intelligent Systems too).

Nah, third party ain't happening, it would mean they probably would have to start laying off staff and downsizing the company considerably just for the sake of maybe selling 20-40% more Mario games (maybe).

I think it's more likely they would accept an alliance with a company like Apple or one of Sony or MS (exclusively) in which they would still perhaps make their own hardware in some ways. Simply going software only is a non starter.



vivster said:
This calculation is very flawed and in no way comparable to the current situation.

Nintendo doesn't sell nearly as much WiiUs as it sold Wiis. The profit margin is currently smaller and will get worse if they are forced to cut the price even more. Building and shipping hardware has more costs attached to it than making software.
Nintendo would sell more software when it goes multiplat.

Suddenly hardware is not nearly as profitable. If other developers and publishers are able to make a decent living of producing software, the software giant Nintendo easily can as well.

Can - yes, should - no.  Yes, Nintendo could be a smaller company selling games on other platforms.  But it would be completely stupid to give up the massive, easy royalty revenue stream.  Saying they should is stupid.  It's not about making a "decent" living, but as much money as possible.  Hardware is Nintendo's main source of revenue, and that's before even looking at the handheld side.

Even if Wii U sells like Gamecube, Nintendo 1st party should sell OK and the 1st and 3rd party royalites will be worth more than extra software sold on other systems could ever be.  Even if Wii U does poorly, they need to stay in the hardware game so that they can produce another console which can adress failures and sell more units.

Saying Nintendo should go third party is completely ridiculous.



Soundwave said:
They're far too big of a company to go software only.

They're a $25+ billion company, to put that in perspective, Rockstar is like a $1.5 billion company even with the no.1 third party franchise.

They're also just spent a ton of money on a giant new development center in Japan (new office for Intelligent Systems too).

Nah, third party ain't happening, it would mean they probably would have to start laying off staff and downsizing the company considerably just for the sake of maybe selling 20-40% more Mario games (maybe).

I think it's more likely they would accept an alliance with a company like Apple or one of Sony or MS (exclusively) in which they would still perhaps make their own hardware in some ways. Simply going software only is a non starter.

I think - as you have discussed - a multi-purpose android tablet type device from Nintendo is coming.  They want and need to keep exclusive control of their brands, and want to keep the royalty revenue from games on their devices.  But as Iwata recently said, exclusive game devices are falling out of favor so a tablet makes sense.