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Forums - Gaming - From a Business Standpoint, How long should Nintendo and Sony continue on with their Struggling Systems if they continue to do the same?

From a business standpoint, if you're losing money on it a year after it comes out. As long as you're not losing money, no reason to stop.



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pokoko said:
The Vita isn't going anywhere. I don't know if it's making a straight profit off the hardware yet but given that digitally distributed titles are selling very well on the platform, memory card sales have to be somewhat robust. They're still working very hard trying to secure games for it and it's linked to PS4 functionality.

It's also definitely going to be back-loaded in terms of hardware sales, which I also think will be true for the PS4 (just as it was for the PSP and PS3). Right now, the PSP is the Vita's biggest enemy, as it still holds the niche it carved out previously. At some point the Vita will take over that niche. The fact that Vita gamers are buying software at a high rate is already pulling developers in that direction. It's an alternative market that is hungry for content and several publishers have already capitalized on that.

The Vita will be around for at least 4 more years, and probably more. The price will fall over time and it will take the PSP's position.

Couldn't agree more !

But the market structure is a lot different from the DS-PSP time. We have smartphones, tablets devour a big segment. If the 3DS is selling that much is because Nintendo plays differently, counting on the sales-power of its casual franchises and appealing 3rd party support. Unlike it, Sony played it the hard way, counting on power-wise which is specific to hardcore gamers, who are currently in pocession of a smartphone and a powerfull home console. So why bother?

Although the vita can be back at some time as the PSP did in Japan, it won't have enourmous sales. I think if it manged to do somewhere around 40m lifetime it would be a success.



Michael-5 said:

As long as the systems generate profit, there is no reason to pull the plug.

Sega got really hurt with the Saturn, it couldn't keep a profit for the entire generation, so Sega prematurely released the Dreamcast, and went on a downward spiral (They had limited options).

If Sony were to pull the plug on the Vita before the handheld generation ended, they would basically be saying "we're leaving the handheld market." As bad as Vita is selling, I think it could still sell over 30 million units lifetime, which isn't much but hey N64 sold about 30 million compared to PS1's 100 million, and 2 gens later, Nintendo recovered. Sony might never overtake Nintendo in handheld gaming, but if their portable division can add 30 million sales, and make a profit, why ever pull the plug?

Same with Wii U, as bad as it's selling, even Sony thinks Nintendo can sell 65 million units (was a slide in a Sony press conference this year). Even if Wii U only sells 30 million units, 30 million units is still a profit, a good one, and Nintendo only makes video games so they have no reason to ignore a profit.


never heard this, is this actually true? lol



Th3PANO said:
never heard this, is this actually true? lol

No... well I never saw that and I had look all the Sony presentation slides published in the Sony sites.



Like other people have said, there's no reason to pull the plug. Keep it profitable and try and get more games out for it, that's what I'd do.



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ethomaz said:
Th3PANO said:
never heard this, is this actually true? lol

No... well I never saw that and I had look all the Sony presentation slides published in the Sony sites.


yeah, what i thought, it would be really extremely dumb to promote the compesition lol



That's a difficult question to answer. It really depends if money's being made. With the Vita, software sales are pretty decent, I don't think I've heard a dev complain about sales for games (Ubisoft was happy with Assassin's Creed 3 Liberation sales for instance). Same with the Wii U, if Nintendo can get more software out and make money, why cut it?



I think Nintendo and Sony should just join forces



     
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I imagine they will both stick it out for the normal generation length, and both not bother with a traditional follow up. Nintendo have already merged handheld and home console departments, so they with probably go into the next generation with a hybrid console. Sony will use Gaikai to spread games to all of their products, while making a line of PS phones that are essentially the Vita successor.



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Th3PANO said:
Michael-5 said:

As long as the systems generate profit, there is no reason to pull the plug.

Sega got really hurt with the Saturn, it couldn't keep a profit for the entire generation, so Sega prematurely released the Dreamcast, and went on a downward spiral (They had limited options).

If Sony were to pull the plug on the Vita before the handheld generation ended, they would basically be saying "we're leaving the handheld market." As bad as Vita is selling, I think it could still sell over 30 million units lifetime, which isn't much but hey N64 sold about 30 million compared to PS1's 100 million, and 2 gens later, Nintendo recovered. Sony might never overtake Nintendo in handheld gaming, but if their portable division can add 30 million sales, and make a profit, why ever pull the plug?

Same with Wii U, as bad as it's selling, even Sony thinks Nintendo can sell 65 million units (was a slide in a Sony press conference this year). Even if Wii U only sells 30 million units, 30 million units is still a profit, a good one, and Nintendo only makes video games so they have no reason to ignore a profit.


never heard this, is this actually true? lol

Yea, I don't have a link, but around the time the PS4 was reveiled, there was a stockholders press conference, and I remember seeing Sony estimate PS4, "Durango" and Wii U sales. They predicted PS4 and "Durango" to sell 85-95 million units each, and the Wii U (at the current rate) to sell 65 million. However, Wii U's prediction was the only one which said *at the current rate. Meaning Sony realizes that they could be wrong, Wii U could explode for all we know.

Flanneryaug said:
From a business standpoint, if you're losing money on it a year after it comes out. As long as you're not losing money, no reason to stop.


Loosing money on what, just the console, or per average consumer?

Sony is planning to sell the Vita at a loss for another year and a half (I remember reading that they were expecting 3 years of loss with Vita), and Wii U is being sold at a loss too, but Nintendo says that 1 console + 1 game = small profit stilll. Plus how long was PS3 sold at a loss?

The way I see it, if the average tie ratio is about 7 games or so, then every Vita and Wii U now is sold at a profit, so it's definatly still worth selling.



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