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Forums - Sales Discussion - Nintendo made $1.2 billion profit in 3 months

Buying third party publishers is always a bad idea unless it's to prevent MS & Sony from aquiring them. Whatever gains from the company purchased would be offset by alienating all the others further.

Profits should go to increased internal development & paying dividends to stockholders.



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I believe Nintendo has a very effective strategy at play now, and it would be  counterproductive for them to stray from their core business into media/mp3-player market, even moreso as that market is so single-handedly dominated by Apple. Same as it would be foolish for Apple to try to enter the handheld gaming console market, I think.

We have to also remember that there already is a handheld mediaplayer/console, made by an extremely well known brand in both media and gaming markets, and though it has sold respectable numbers, it's nowhere close to either iPods or the DS. So, I believe it would not be a good idea to make another do-it-all-product, and it could serve to dilute the brand instead of strengthening it.



They should invest it in building more DS/Wii factories. I need to buy another ds, but they're friggin' out of stock EVERYWHERE!



darconi said:
starcraft said:
 

Funny, but I could have sworn that Mario was Nintendo's flagship character and that this game's profits were meant to be split down the middle with Nintendo. I also could have sworn that Capcom's mega-profits were coming from Dead Rising, DMC 4 and Lost Planet, rather than the commercial flop that was Zack and Wiki. Furthermore, I could have sworn that Ubisoft's massive profits were coming from the success of Naruto and above all Assassin's Creed.

You did not say anything to refute the fact that Sony and MS are turning a profit. I sincerely hope you don't try too, as all i need to do to comprehensively refute you is post their quarterly reports. Nowhere do I say that developers "aren't" making money of the 360, you said that and offered nothing to back it up. I argue quite the contrary, and the sales figures support me.

I've never really had much to do with you on these boards, but a quick glance made me wonder why everyone accuses you of being a rabid fangirl devoid of any logic or realism. I wonder no more, as your solution to any argument your losing is to dance around with word games and simply state that you have "put arguments in their place" after really doing nothing of the sort.


Wow, I never realized how badly of a fanboy and fact cherry picker you are. That paragraph was just so blindly ignorant. You focused on Z&W, the one wii game capcom has not done outstanding with and even that is on pace to be very successful with European results (low budget game=low sales to break even). You completely ignore RE4 and RE:UC with both have wildly broken past Capcom's expectations of 420k and 600k sales and are going on strong. They will make more money off of those than the other games you have mentioned. Profit does not depend completely on total final sale numbers.

And you also ignore Ubisoft crediting the wii with their profit during the launch year when they made million sellers of RRR and Red Steel. The fact that they didn't release any significant games so far this year on the wii is the reason they haven't made money on it.

And comparing NHM to Crackdown? How stupid can you be? Killer7, the precedessor to NHM sold less than 40k on the PS2! Does that really inspire you to say it should be a million seller?


Actually if you read the post before this one I mentioned million sellers including RE, but stated that it is already on other platforms, where it is highly profitable.  I also as part of my million sellers comment address RRR AND Red Steel, when I claimed that two of the Wii's third-party million sellers were shooters, and discussed the sequel to RRR.  Speaking of cherry-picking, its funny you should mention RRR and in the same breath claim Ubisoft didn't release any significant games since then, ignoring the shocker that was RRR2!

As for NMH and crackdown?  It takes only lowball intelligence to realise that I was talking about the content and style of the games, and THEN making a sales comparision.  Even if I haden't been, are you saying that Killer 7 bombing on the PS2 justifies NMH bombing on the Wii. 

Perhaps next time you will read and think before you give an extremely trollish and one-sided comment that accuses someone of being both stupid and a fanboy. 



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

ItsaMii said:
starcraft said:
@ GGE

So what you are saying is that developers should be resigned to the fact that they cannot make a profit, but be content to barely stay afloat by existing only on the Wii? No More Heroes, a VERY high quality game just debuted with 40,000 on the Wii. It will not turn a profit. The most comparable game on the 360, Crackdown, is a million seller.

How many developer's have to complain that they cannot profit off the Wii before people like you take notice? I purchased a Wii for ONE reason. Nintendo's first-party franchises.

You can keep accusing everyone of having no logic, you can keep accusing everyone of dodging facts, but at the end of the day you do not have a coherent argument based in anything remotely resembling reality. Businesses do not exist to survive (in any case many could not if their development was confined to the Wii), they exist to make money.

What a dishonest argument. You know that Ubisoft under shipped NMH copies at launch? Have you played the damn game at least? It is not that high quality as you say (technical standpoint). I love the game and would love to see more games like that, but the graphics are not anything to be proud about. The game is niche and low budget. Another issue is that Crackdown comparison. What if NMH came with a SSBB demo, would it sell a million like crackdown?

I would bet that it will make a big profit and will be Suda 51 best selling game ever (untill now).

I do not want to start a "which console is better" discussion, but you are making some lame comparisons. Would Zack and Wiki or NMH sold better on the 360? I do not see its userbase buying high budget high quality games like Blue Dragon, Eternal Sonata, Lost Odissey (it is Japan only, so you can ignore this one). Even Orange Box sales are a little dissapointing. I think you should not just make some clueless claims that 3rd parties do not sell well on the Wii based on 2 niche low budget titles.


The game is not currently available where I live, and yet every review I read claims that it has reasonably high production values.  Also, I distinctly remember Crackdown ranking high on the Xbox Live lists well BEFORE the Halo 3 Beta, so that debunks that argument.  As for Blue Dragon, ES and Lost Odyssey, have you seen their Japanese attach rates?  Want to compare it to NMH's Japanese attach rate? Hell, even comparing raw sales they beat it.  The Xbox 360 is regularly called the shooter console, and yet Blue Dragon can sell over 200,000 copies in the West.  In any case, BD and LO are both first party titles and ES's development was funded by MS.  My argument is that THIRD PARTIES can make a better profit on the 360.

The Xbox 360 is not a shooter console anymore, but third party RPG's and shooters can make massive profit (and they are).  But the "casual" Wii console, only makes money for first-party casual games, with the exception of guitar hero which is available with better graphics and online support on both other consoles.  

How about instead of simply criticising me, you point to the third parties that are making MORE profit off the Wii than the 360 (and to a lesser extent the PS3 I guess), rather than just toeing GGE's line? 



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

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starcraft said,

My argument is that THIRD PARTIES can make a better profit on the 360.

That's not true. The Xbox 360 is not selling well in Europe and Japan. And this trend is going to continue in Europe, if Micrsoft does not do something, and Japan, where the Xbox 360 is dead. This will lead to 3rd parties being able to reach a wider audience on the PS3 and the Wii and make more profit than they would by only producing games for the Xbox 360.

Furthermore, more Japanese developers will be more than likely to develop more games for the PS3 and the Wii due to their larger fanbase. This means more 3rd party profit for the PS3 and the Wii. This will be a problem for the Xbox 360 for a long time during this generation.



If Nintendo is successful at the moment, it’s because they are good, and I cannot blame them for that. What we should do is try to be just as good.----Laurent Benadiba

 

@ patjuan32

Read the thread, I'm not arguing for a moment that the PS3 cannot sell third-party games. What I'm saying is that the Wii struggles to turn meaningful profit for these developers. Right now the Wii ALREADY has a MUCH larger userbase than the Xbox 360, but the 360 is making MUCH more money for third parties. Arguably so is the PS3.



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

shams said:
The one thing I would like to see Ninty do, is move into a completely different market - even to say, compete directly with Apple over iPod / music player sales.

The key for them is manufacturing - whatever they do, it can't compete/disturb their current manufacturing chains/products - that would be counter productive.

A simple iPos style (no screen? or iPod touch style?) device - purely as a media player. Something small, cheap, easy to make.

Make money off the 'Nintendo' name itself.

The other option is to release something like this as a "premium DS II" (or just a premium DS).

If they released a new, limited edition version of the DS - that was say, double the price - and had a heap of extra features (with double the margin) - it would be a huge seller.

...

But I guess their strength *is* software, and its more profitable really. If they can sell 10m units of Brawl this year, and say it cost 10m US to produce - Ninty would be making $25US / unit. Thats a juicy 230m profit - from one title.

If they can sell 200m units of software in a year (possible when there are 100m DS units + 40m Wii units in the market) - at a $20 margin each - thats a solid 4bn US.

The problem is, I don't think the mp3 player market needs any additional competition, and Nintendo would not want to dilute their brand by expanding into new markets that would be difficult to compete in.  If they do expand their product line, it will be either an entirely new product directly related to gaming, or some other form of interactive entertainment.



Zucas said:
Unless Nintendo starts to expand their horizons though, these profits they are making are probably their peaks. As there isn't really much higher they can get in their current situation. They need to start expanding their game development by buying more developers. Which means we could get more first party games haha.

Wouldn't it be amazing if Nintendo bought a small but still sizeable Japanese developer. Such as maybe Tecmo, seeing as their close relationship lately. This is what NIntendo needs to do if they want to continue to expand their profits.

I think that Nintendo is investing their money beck into game development, as we can see with the Fatal Frame IV deal and the mysterious Factor 5 deal. It just seems that rather than simply gobbling up studios and setting them to work on Nintendo games, they're making partnerships with studios as a financer and publisher of projects on Nintendo platforms.

It seems that Nintendo is wary of going down the road of neverending acquisitions and consolidations. They've seen this strategy flounder for companies like EA and Take 2, so they're choosing to be cautious (as always) and retain their small company size and the flexibility that affords them.

So they lend support to third parties to ameliorate some of their risks and give them some access to Nintendo's top-rate development resources. In return, Nintendo will reap more than just licensing fees when these games hit the market.



"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event."  — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.

I think going into cell phones is their best opportunity. They already have a massive library of GBA games that could be easily ported. In addition, Nintendo has the best small memory, small screen programmers in the world.