Squilliam said:
Alby_da_Wolf said:
And nobody even considers a possible MS entry into the portable market.
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Microsoft is already entering the market. Windows mobile 7 games are about as close to an Xbox 360 Arcade title as you can get without actually making them 1:1. IIRC the code base of a typical game is 97% identical. So it goes without saying that Windows Mobile 7 will get a decent supply of downloadable games, enough to make it a gaming platform in its own right.
@Smashchu:
"According to an NPD data analysis, the iPhone is now responsible for 19% of all revenue generated by handheld games (as of 2009), compared to the PSP’s 11%. Obviously, the DS still reigns supreme with 70%."
http://socialmediaseo.net/2010/03/25/iphone-beats-psp/
Given the fact that the iPhone has a superior (read more profitable) distibution model the likely split between iPhone and DS is likely to be closer to >30% publisher revenue compared to <65% for the DS as the distribution fee is a flat 30% vs the obvious packaging, distrubution, retailer and license costs from Nintendo.
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That's not even 1/4th of the market. How can we say that Apple is a threat? They obviously do not have anywhere near the strength to effect Nintendo.
A few other misnomers. The distribution is not really "more profitable." What it really has is higher margins (Difference bewteen the slaes price and it's unit cost). Profitability is the end result. Let me take two products (and we'll say they are both softare titles on two diferent platforms) and show you how one is more profitable)
| |
Game A |
Game B |
Game C |
| Selling Price |
$5 |
$40 |
$40 |
| Variable Cost |
$2 |
$48 |
$30 |
| Unit Gross Margin |
$3 |
$2 |
$10 |
| Sales |
500 |
50,000 |
50,000 |
| Gross Margin |
$1,500 |
$100,000 |
$500,000 |
See how A, despiting having a weaker margin, would generate more revenue. This is because it has a higher potential to sell better. Game C was to show that higher price can mean better margin. The most the margin for A could be was $5 (this is with no cost). The most the Margin of product B and C could be is $40. There is a lot more wiggle room. Because the price is higher, it can meant the margin can be higher as well. Now, look at this.

Notice how iPhone has far more games. They have asmaller peice of the pie and it is spread across more games. This means they they are not a real gthreat to Nintendo as making a game on a Nintendo system has a higher chance of yeilding better profits. The 19% is more from shear bulk them from compeling software.
So I still say that Apple is no threat to Nintendo.