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Forums - Gaming Discussion - Forbes: Microsoft Should Give XBox One To Nintendo

RolStoppable said:
Okay, I'll entertain the idea that Xbox should become part of Nintendo. First question, how would that benefit Nintendo? Why would they want to add another failure to their line of products? It makes absolutely no sense.


It doesn't make any sense.  Which is why it fits in perfectly with Nintendo's current strategy.



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kowenicki said:
Fusioncode said:
Arius Dion said:
Fusioncode said:
Arius Dion said:
Gaming is a very hostile business. The console graveyard is full of carcasses. Gaming is not in a healthy place right now. The object of business is to make money. If you aren't why stay? The landscape is changing and shrinking beneath their feet. The gaming industry will meet massive decline and corporate conglomerates will want to trim the fat.

Gaming is a small part of what they M$ & -$ony do. Sony especially doesn't have the ability to keep dumping cash into a black hole. And M$ hates not making money period. Xbox offers Nintendo nothing. They won't buy the brand at all.

Playstation is one of Sony's most profitable ventures, the division just posted a profit during a console launch, where they typically lose money. 


Since when? Measly if any profits from gaming didn't stop Sony from being given junk status credit rating. 

Did you read what I wrote? Playstation division posted a profit this quarter, you said it was a black hole that Sony keeps dumping cash into. Which is completely incorrect. I wasn't talking about Sony as a whole. 


The profits form playstation arent significant and in 5 out of the last 8 years its been a major cash hole. 

I think the argument would be, particulaly in the context of this thread, that the sony capital could be better spent elsewhere. 

Perhaps something else could give a better return on capital than gaming does.... I'm pretty sure it could.


Source?

Edit: Playstation appears to have been profitable in 2010, 2011, and 2012 despite R&D costs for the PS4. As someone else mentioned they are also posted a profit last quarter despite launching a new console. Financially Playstation is fine.

http://www.joystiq.com/2011/05/26/sony-posts-fy-2010-earnings-singles-out-profits-in-playstation/

http://www.tssznews.com/2011/05/26/sony-playstation-division-posts-profit-for-fy2011/

http://www.gsmarena.com/sony_posts_2012_financial_results_records_profit_of_458_million-news-6008.php



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Soundwave said:

With MS' backing and a premiere "dudebros" killer app in Halo, Nintendo would get the support of all third parties too. 


Don't forget Microsoft's key differentiator: Gaming services.

Soundwave said:

If the game business went back to just a 2 horse race between Nintendo and Sony, Nintendo wins huge in that. They'd be guaranteed a 50 million userbase at least IMO even if Sony "wins" ... and wouldn't have to rely on risky/fickle audiences like casuals that turn abandon them on a whim. 

The real problem here as I see it is how much control would Microsoft have? And what exactly would stop Microsoft from buying out Nintendo at a later date if Nintendo did a little too well?

That's what I think Nintendo would be afraid of. 

Also, publishers would be forced to provide at least nominal support to Nintendo as a hedge against Sony. It's easier to play favourites with three choices than with two.

You're right that a Nintendo/Xbox deal would come at a price (Xbox might be amoney loser, but it's not worthless), and that price would probably involve online services. Microsoft would try to use the deal to turn Nintendo into an OEM for Microsoft services, to steal the customer relationship from Nintendo.

I don't think Nintendo needs to worry about being re-acquired down the line, if an Xbox merger turns the company around, all that new market value will be on Nintendo's balance sheet, not Microsoft's.

 



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kowenicki said:
Fusioncode said:
Arius Dion said:
Fusioncode said:
Arius Dion said:
Gaming is a very hostile business. The console graveyard is full of carcasses. Gaming is not in a healthy place right now. The object of business is to make money. If you aren't why stay? The landscape is changing and shrinking beneath their feet. The gaming industry will meet massive decline and corporate conglomerates will want to trim the fat.

Gaming is a small part of what they M$ & -$ony do. Sony especially doesn't have the ability to keep dumping cash into a black hole. And M$ hates not making money period. Xbox offers Nintendo nothing. They won't buy the brand at all.

Playstation is one of Sony's most profitable ventures, the division just posted a profit during a console launch, where they typically lose money. 


Since when? Measly if any profits from gaming didn't stop Sony from being given junk status credit rating. 

Did you read what I wrote? Playstation division posted a profit this quarter, you said it was a black hole that Sony keeps dumping cash into. Which is completely incorrect. I wasn't talking about Sony as a whole. 


The profits form playstation arent significant and in 5 out of the last 8 years its been a major cash hole. 

I think the argument would be, particulaly in the context of this thread, that the sony capital could be better spent elsewhere. 

Perhaps something else could give a better return on capital than gaming does.... I'm pretty sure it could.

Sony made a lot of money off the PS1/PS2 era. Yes the PS3 was a disaster profit wise but Sony isn't making the same mistakes this time around, The Playstation division is profitable during a launch period with the PS4 which is rare news for the company. Even the PS2 posted a loss during launch. As long as the PS4 continues to do well then gaming will be a good moneymaker this gen for Sony. 



Sigs are dumb. And so are you!

Fusioncode said:
Arius Dion said:
Fusioncode said:
Arius Dion said:
Gaming is a very hostile business. The console graveyard is full of carcasses. Gaming is not in a healthy place right now. The object of business is to make money. If you aren't why stay? The landscape is changing and shrinking beneath their feet. The gaming industry will meet massive decline and corporate conglomerates will want to trim the fat.

Gaming is a small part of what they M$ & -$ony do. Sony especially doesn't have the ability to keep dumping cash into a black hole. And M$ hates not making money period. Xbox offers Nintendo nothing. They won't buy the brand at all.

Playstation is one of Sony's most profitable ventures, the division just posted a profit during a console launch, where they typically lose money. 


Since when? Measly if any profits from gaming didn't stop Sony from being given junk status credit rating. 

Did you read what I wrote? Playstation division posted a profit this quarter, you said it was a black hole that Sony keeps dumping cash into. Which is completely incorrect. I wasn't talking about Sony as a whole. 

I read it. But after how many years of losses? To finally post a little profit? They dumped Billions of dollars on the PS3 that doesn't go away through one quarter of meagre profit. 



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... Could you imagine the meltdown, if something like that were to actually come to pass...? The internet would crash. Dudebros worldwide would commit mass-suicide.



Nintendo Network ID: Cheebee   3DS Code: 2320 - 6113 - 9046

 

think-man said:

how has the xbox brand not made any money? thats the real question.

Its made money, just nowhere near what Microsoft considers substantial. The reason why MS is in the gaming industry is pretty self evident. Heh



Some of you people are not understanding the bigger picture here. Its not about a partnership or stamping "Nintendo" over the XB1 boxes, its about a mutual exchange. (hypothetically) MS wants Windows/live eco system to flourish, and this is where Nintendo is weak. On top of that, with M$'s vacancy, Nintendo inherits vast 3rd party support. 2 huge weaknesses now fixed for Ninty.

So M$ gets out of the way, basically in exchange for Nintendo Network *powered by Windows*.



kowenicki said:
kitler53 said:
...

well listen, i'm not business expert.  i'm an engineer by trade.  ..but as a boy scout i learn that some times you're better off amputating an injured limb rather than trying to save it.  ..or selling my car to the junk yard rather than pay to fix it.  ..or any number of other wild analogies.

MS is in a very differnt position than sony or nintendo.  for MS, video games are more of a side project than a core business.  ..a distraction as many articles are calling it.  there's not a lot of money for them here, not compared to their core ventures.    but by the same hat,.. it won't bankrupt them either so i guess things could go either way.

..i guess it all comes down to what the new CEO's vision is but xbox doesn't really have much of a synergy with windows or office.  it's not going to help them sell more of their core products.  i really don't know what xbox does for MS as a corporate entity.  what's in it for MS?  what's the payoff that makes it worth it to them? i just don't see it

eh.

I agree that its small fry for MS.  But that is both a positive and a negative.  No harm in hanging around and seeing if the other two financially implode is there.  

I'd say the chances of that are 50/50 at the moment, particularly if the gaming crash you predict happens.

 


i'd probably go lower than that,..  maybe 25/75 with odds being low that MS actually sells xbox.  ..maybe even less.   for all the analyst chatter MS doesn't have to listen to it any more than when sony didn't listen when analysts that wanted them to sell off their movie division.

for MS to sell xbox there needs to be someone willing to buy it at a price worthwhile to MS.   as it stands now, who other than amazon would buy it and would they really offer a worthwhile price? if/when the collapse in gaming happens xbox as a brand will lose a lot of it's value and the likelyhood of a selloff seems would increase, imo.  for the moment complacency (..complacency isn't really the word i want but i can't think of another..) will likely keep the status quo simply because there isn't a huge reason to change.



RolStoppable said:
Okay, I'll entertain the idea that Xbox should become part of Nintendo. First question, how would that benefit Nintendo? Why would they want to add another failure to their line of products? It makes absolutely no sense.

i would say that the author gave little to no thought to what happens to nintendo.  i think he was only really considering what he thinks is best for MS.

 

...but c'mon.  throwing MS's dudebros into bed with nintendo's kiddies.      hot.   soo sexy.