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Forums - Gaming - Where Does Nintendo Go If Wii U Never Takes Off?

Turkish on 22 January 2013

It'll be 4 years on the market, then a new console will come out mid gen to compete with the PS4 and 720. Prediction based on the possibility if sales still won't pick up next year.



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KHlover on 22 January 2013
Jay520 said:
KHlover said:
Jay520 said:
KHlover said:
torok said:
Claymore said:

Little hint Sony due to business model didn't make anywhere near the amount of money with the playstation brand as many seem to think.


The GBA profits are embedded in this data, so it doesn't say a lot about GC. But it's impossible for GC to give more money than PS2, it didn't sell less, it sold abysmally less than PS2. And almost 50 million PS2 units were sold after the start of this gen, all sold at a profit. GC stopped selling quick, so it didn't had teh advantage of selling when it was cheaper to manufacture. Besides that, the software sales are completely different. PS2 was a monster in that regard. The top selling PS2 game almost outsells the GC lifetime hardware sales. It's not even a fair comparison in this case. Even with the model of selling it above cost price, PS2 simply sold too much to not being profitable. It's a difference of more than 6 times the installed base.

And yet Sony didn't profit from it. They made a loss each fiscal year after the PS3 launch, the PS2 could have sold 200Mil and they would not have seen a single cent of profits.


Umm yeah those sales did produce profit. Just because PS3 caused more losses doesn't mean the PS2 didn't make profit. Sure Sony as whole didn't profit, but that's not what they're discussing. They're discussing the PS2's profit versus the Gamecube's profit.

Technically you're right, but don't you think Nintendo profited more from the GCN's profit as they were actually able to use it instead of having to use it to cover up losses?


I don't see how you can profit more from less profit. The discussion is about which console produced the most profit, not which company was better equipped to use that profit.

By the way, I'm not even sure what you mean by "use" profits anyway.

By not having other divisions at loss eating the profit of your gaming division away.



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Jay520 on 22 January 2013
KHlover said:
Jay520 said:
KHlover said:
Jay520 said:
KHlover said:
torok said:
Claymore said:

Little hint Sony due to business model didn't make anywhere near the amount of money with the playstation brand as many seem to think.


The GBA profits are embedded in this data, so it doesn't say a lot about GC. But it's impossible for GC to give more money than PS2, it didn't sell less, it sold abysmally less than PS2. And almost 50 million PS2 units were sold after the start of this gen, all sold at a profit. GC stopped selling quick, so it didn't had teh advantage of selling when it was cheaper to manufacture. Besides that, the software sales are completely different. PS2 was a monster in that regard. The top selling PS2 game almost outsells the GC lifetime hardware sales. It's not even a fair comparison in this case. Even with the model of selling it above cost price, PS2 simply sold too much to not being profitable. It's a difference of more than 6 times the installed base.

And yet Sony didn't profit from it. They made a loss each fiscal year after the PS3 launch, the PS2 could have sold 200Mil and they would not have seen a single cent of profits.


Umm yeah those sales did produce profit. Just because PS3 caused more losses doesn't mean the PS2 didn't make profit. Sure Sony as whole didn't profit, but that's not what they're discussing. They're discussing the PS2's profit versus the Gamecube's profit.

Technically you're right, but don't you think Nintendo profited more from the GCN's profit as they were actually able to use it instead of having to use it to cover up losses?


I don't see how you can profit more from less profit. The discussion is about which console produced the most profit, not which company was better equipped to use that profit.

By the way, I'm not even sure what you mean by "use" profits anyway.

By not having other divisions at loss eating the profit of your gaming division away.



Fair enough. Nevertheless, The discussion is about which console produced the most profit, not which company was better equipped to use that profit.

KHlover on 22 January 2013
Jay520 said:
KHlover said:
Jay520 said:
KHlover said:
Jay520 said:
KHlover said:
torok said:
Claymore said:

Little hint Sony due to business model didn't make anywhere near the amount of money with the playstation brand as many seem to think.


The GBA profits are embedded in this data, so it doesn't say a lot about GC. But it's impossible for GC to give more money than PS2, it didn't sell less, it sold abysmally less than PS2. And almost 50 million PS2 units were sold after the start of this gen, all sold at a profit. GC stopped selling quick, so it didn't had teh advantage of selling when it was cheaper to manufacture. Besides that, the software sales are completely different. PS2 was a monster in that regard. The top selling PS2 game almost outsells the GC lifetime hardware sales. It's not even a fair comparison in this case. Even with the model of selling it above cost price, PS2 simply sold too much to not being profitable. It's a difference of more than 6 times the installed base.

And yet Sony didn't profit from it. They made a loss each fiscal year after the PS3 launch, the PS2 could have sold 200Mil and they would not have seen a single cent of profits.


Umm yeah those sales did produce profit. Just because PS3 caused more losses doesn't mean the PS2 didn't make profit. Sure Sony as whole didn't profit, but that's not what they're discussing. They're discussing the PS2's profit versus the Gamecube's profit.

Technically you're right, but don't you think Nintendo profited more from the GCN's profit as they were actually able to use it instead of having to use it to cover up losses?


I don't see how you can profit more from less profit. The discussion is about which console produced the most profit, not which company was better equipped to use that profit.

By the way, I'm not even sure what you mean by "use" profits anyway.

By not having other divisions at loss eating the profit of your gaming division away.


Fair enough. Nevertheless, The discussion is about which console produced the most profit, not which company was better equipped to use that profit.

Yeah, I'm aware of that and hope the bolded part stressed this enough. I just answered your question with my last post^^

EDIT: Yay, post no. 1000 :D



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Member of the "An Unbiased Review" Database team

NintendoPie on 22 January 2013
Claymore said:


 

If anybodies at risk of going third party taking all things into account is Sony they're not in a situation where they can ride out another 6-7 years of losses the company simply not in the postion to screw up again.

It would be interesting to see the 2012 numbers. I wonder where the poster go this from...



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OceanJ on 22 January 2013
Claymore said:

Nintendo as a company hasn't posted a loss in there yearly financial statement in the last 30 years and made massive profits in the last 4-5 years due to the DS and WII, they're a company that runs on selling hardware at a profit while sony sells hardware at a loss and hopes to make the there money back on the software.

Old picture from a old thread.

 

If anybodies at risk of going third party taking all things into account is Sony they're not in a situation where they can ride out another 6-7 years of losses the company simply not in the postion to screw up again.

This is incorrect.  Nintendo posted their first annual loss, last year, in 2011.  It made fairly big headlines...common knowledge, but go ahead and look it up.  And the last 2-3 years, Nintendo's profits have dwindled as the Wii's popularity has waned, and the 3DS got off to a rocky start, and was sold at a loss up until September 2012.  

Nintendo's history of profits is no protection from the present.  They are still in a very strong position though in two major regards. 1) They're cash-rich.  They have zero debt and enough cash in the bank to go whatever direction they want.  2) They absolutely own the dedicated handheld market.  Though, it appears the 3DS's popularity world-wide is waning.  If you look at the average weekly sales figures for 2012 vs 2011...you'll find the 3DS sold approx 36,000 fewer units per week than it did in 2011.  It only had a YoY combined sales increase in 2012 b/c it was on sale the full year, whereas it only had 10 months in 2011.

Nintendo is strategically still in a good place.  They have many options and avenues available to them, that would allow them to recover financially and still remain a hardware company for the long-term.  It's just a question of...will they make the right decisions.  As of late, Nintendo leadership has made poor decisions overall.



archbrix on 22 January 2013

"Where does Nintendo go if Wii U never takes off?"

To the bank... to deposit all the money they're going to make with the 3DS.



VGKing on 22 January 2013

They'll fully focus on 3DS and maybe even enter the tablet market.



WagnerPaiva on 23 January 2013
VGKing said:
They'll fully focus on 3DS and maybe even enter the tablet market.


Not really, they are going to make a profit on the WiiU anyways, even if they don´t outsell any of the other companies. Sony should learn a lesson with Nintendo: NEVER SELL ANYTHING AT LOSS, NEVER!



My grammar errors are justified by the fact that I am a brazilian living in Brazil. I am also very stupid.

VGKing on 23 January 2013
WagnerPaiva said:
VGKing said:
They'll fully focus on 3DS and maybe even enter the tablet market.


Not really, they are going to make a profit on the WiiU anyways, even if they don´t outsell any of the other companies. Sony should learn a lesson with Nintendo: NEVER SELL ANYTHING AT LOSS, NEVER!

3DS was sold at a loss after that huge price cut.

Wii U is currently sold at a loss.