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Forums - Gaming - What burns more money? A bad selling handheld or home console?

Conina said:

So both the PSVita and the WiiU sold around 3 million units last year... both way under the expectations/hopes of Sony and Nintendo... but which one burns the money faster, if it doesn't sell well?

To begin with, the production costs of 1 handheld is much lower than the production costs of 1 home console.

Additionally, the Vita has many components, which are also mass produced for smartphones and tablets... and these costs are falling rapidly. Look what you had to pay for an unsubsidized smartphone with a 200-250 ppi-display & touchscreen and a QuadCore-ARM-SoC two years ago and now.

The production costs of the WiiU will fall, too... but not so fast.

Then there are transportation costs. The dimensions and the weight of a packaged handheld box are much lower than the dimensions / weight of a home console box. The difference for the components (they also have to be transported to the manufacturer) is even higher.

Finally we have the precious storage space of Amazon and many other retailers. Due to the much smaller box, an unsold Vita uses way less storage space than an unsold WiiU and produces less storage costs.

 

What? u make no sense at all. 

 

u dont make the money with consoles/handhelds, u make the money with software. 

nintendo is doing well with software if u look at the little installbase. NSMBU has a realy, realy attachmentrate.  and it was a realy cheap game. sames goes for other nintendo games.

sony doesnt look so great. they dont sell much software, they have sold 2m more vitas than wiius and just 50k more games(well till this weeks numbers, then wii u will have outsold vita in software).

and sony isnt sellling so much firstpartysoftware. and nintendos firstpersonsoftware is cheaper to make i bet. the big sellers arnt games that look like 50m $ games. so nintendo should have a bigger profit on software sells.

 

i think sony is losing more on vita.



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Barozi said:
I think you just answered your own question.

This.



Wii U



generic-user-1 said:

u dont make the money with consoles/handhelds, u make the money with software. 

nintendo is doing well with software if u look at the little installbase. NSMBU has a realy, realy attachmentrate.  and it was a realy cheap game. sames goes for other nintendo games.

What is the Wii U attach rate and what is the Vita attach rate?

We don't know, and tbh it's unlikely we'll ever know due to just how much Vita software is digital only.



RIP Dad 25/11/51 - 13/12/13. You will be missed but never forgotten.

I'm sure Sony is making a little bit of money off every Vita sold, it's not doing well but it should make them a small profit. The WiiU is in a worse position because Nintendo is probably losing money off every console sold. Sony doesn't even seem to be trying to improve the Vita's sales, they're content with it right now. I can't say the same with Nintendo.



Sigs are dumb. And so are you!

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I also believe sony is making little money on Vita, that's why there are not worried about that much lately and focusing on PS4. Once the PS4 is set this year then sony will put more resources on Vita revitalize and make it cheap with good cross titles, indies etc.,



GAMING is not about spending hours to pass/waste our time just for fun,

its a Feeling/Experience about a VIRTUAL WORLD we can never be in real, and realizing some of our dreams (also creating new ones).

So, Feel Emotions, Experience Adventure/Action, Challenge Game, Solve puzzles and Have fun.

PlayStation is about all-round "New experiences" using new IP's to provide great diversity for everyone.

Xbox is always about Online and Shooting.

Nintendo is always about Fun games and milking IP's.

biglittlesps said:
I also believe sony is making little money on Vita, that's why there are not worried about that much lately and focusing on PS4. Once the PS4 is set this year then sony will put more resources on Vita revitalize and make it cheap with good cross titles, indies etc.,

So Sony is going to focus on the Vita finally in 2015?  Seems a little late.



Obviously a console.



    

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It depends. If it's something like PS3 that's selling at a huge loss it's going to lose a lot more than a handheld that may sell less even. How much of a loss and how low of software sales it has determines this and of course how big R&D is.




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