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Forums - Nintendo Discussion - Nintendo's revenue will decrease if it goes third party.

Teeqoz said:

If we use your numbers, where nintendo makes 80-100% profit on their games now, whilw when third party they would only make ~60% the they would have to sell 1,6 times better to make profit there. which means they'll have to sell 60% more software to make up the lost profit. I'm confident that they could do that.

Then there is the fact that they wouldn't have any of the losses from their hardware segment, so that none of their software profit would be used to offset hardware losses.

Metroid Prime would do waaaay better on PS3/4 and Xbox 360/One. FPS wasn't as big during the 6th gen as it is now, so during the NGC era it didn't matter as much as it would now. And you just proved our point in your post, despite many being interested in Nintendo games, they're not interested enough to buy Nintendo hardware, but if it was third party then a lot more people would buy their games.

Does it matter if the Pro-controller has the same innards as the DS4? I mean, it still feels exactly the same right? And for the NFC thing, there is precedent, it's called Skylanders and Disney infinity, which both are accecories that come from third parties.

SEGAs downfall wasn't purely because of them going third party, but also because of their horrible financial situation. The Saturn wasn't as succesful as a lot of people seem to think, and besides the Saturn all their other systems were basically failures that cost them quite a bit of money. If Nintendo goes third-party BEFORE their broke, then they can still fund the development of great titles.

FYI SEGA had higher profits than Nintendo last year


They don't have hardware losses to offset anymore, and hadn't had hardware losses to offset ever before except for this one time where they screwed up with the expensive tech in the 3DS (the 3D) and the WiiU (the streamer). They have to offset hardware gains lost, not hardware losses. They have to sell more software part 1. They have lost all accessory revenue. That's sell more software part 2. You're building off a scenario that no longer exists. They don't have losses to lose, they now only have profits from more than software to lose. That means that their software now has to sell all that much more, and more. And you're incredibly over-estimating many of their IPs. Outside of all of three, they aren't going to sell all that much more than they already do because they are niche. Dark Souls I/II didn't magically explode in sales when it went multiplatform. It gained maybe a million more overall. Top of the line series but its niche like most of Nintendo's software offerings.

I didn't prove your point, I said that people are not that eager to jump on these franchise even with a next-to-nonexistant barrier to entry like the NGC at 99$ at a time when the economy was actually good. That doesn't prove your point, and all you've been doing, time and again, is saying "it will sell better!" without ever actually corroborating this with any measurable or scalable quantities to see if these "waaaayyyy!" better sales will actually offset the now completely gone other forms of income.

If the pro-controller is the exact same thing as the dual-shock, then why would it even be getting sold or bought? Do you seriously think Sony would even allow a competitor on their money stream? Or Microsoft? There is a reason why Sony has locked down their controller hardware options to only accepting the DS controller hardware, thats because they want every penny they can get from it. (Because it millions of dollars in next-to-pure profit and no hardware developer would give that up to a third party club.) The Skylanders is literally the only thing, I was referring to things Nintendo actually sells as peripherals: controllers, controller accesories, and handheld accessories. Those would all literally cease to exist, particularly the handheld ones as there'd be no handhelds.

I know SEGA's profits. You don't need to point them out to me.



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DerNebel said:
amak11 said:
Fusioncode said:

Yes you are. The topic is about Nintendo making more money as a 3rd party publisher than a console manufactorer. Sony isn't a 3rd party publisher as far as I'm aware. Whether you want to accept it or not, the fact is Nintendo has posted losses 2 years in a row. Considering they still posted a loss last quarter, they're likely going to post another loss for the year. Sony isn't doing well, nobody is disputing that, but it has nothing to do with Nintendo's current financial state.


Profit is not revenue, and we are talking about revenue in this thread. I injected it as a comparison, whether you are inclined to agree or disagree with my statement is entirely on you. Nintendo is not in the red. This is fact that you are not understanding. My prediction is they are not in the red and hopefulling making revenue. besides this thread is FOR FACT talking about whether Nintendo would make revenue (which is enough money to pay your expenses) if they are third party. They would not make any additional revenue meaning they would post considerably larger losses. The chances are at Nintendo's current employee number Nintendo would never  make profit on third party life. 

You should look up revenue, cause you don't seem to understand what it actually is.


i suggest you look at it. Revenue is money made to cover your expenses. Profit is revnue less expenses. This thread is about whether or not Nintendo can keep revenue if they went third party. I've done enough business courses and extracurricular business programs to know this. 

http://www.answers.com/Q/Difference_between_profit_and_revenue



amak11 said:
DerNebel said:
amak11 said:


Profit is not revenue, and we are talking about revenue in this thread. I injected it as a comparison, whether you are inclined to agree or disagree with my statement is entirely on you. Nintendo is not in the red. This is fact that you are not understanding. My prediction is they are not in the red and hopefulling making revenue. besides this thread is FOR FACT talking about whether Nintendo would make revenue (which is enough money to pay your expenses) if they are third party. They would not make any additional revenue meaning they would post considerably larger losses. The chances are at Nintendo's current employee number Nintendo would never  make profit on third party life. 

You should look up revenue, cause you don't seem to understand what it actually is.


i suggest you look at it. Revenue is money made to cover your expenses. Profit is revnue less expenses. This thread is about whether or not Nintendo can keep revenue if they went third party. I've done enough business courses and extracurricular business programs to know this. 

http://www.answers.com/Q/Difference_between_profit_and_revenue

Revenue is money made by business activities, simple as that, expenses have nothing to do with it.

So this expressions you used

"hopefully making revenue"

makes no sense. To not make revenue Nintendo would have to literally not sell anything.



Wii and DS are perfect examples why Nintendo shouldnt go third party. Both hugely successful, and the amount of revenue they generated from 1st party software was staggering. There is no reason why they cant replicate this kind of success from future hardware. Wii U is selling bad, doesnt mean its successor will.



I'm pretty sure Metroid Prime won't do good on the PS4 and X1. For 1 you play as a girl, which only some of the FPS crowrd will allow, and it still doesn't have the same amount of violence and swear words in the game that the FPS crowd want. After all, in most Metroid games, the first thing you shoot are bugs or space pirates. And that's boring, according to some of my FPS friends on both PlayStation Network and Xbox Live said.



Bet with Xander XT: 

I can beat more games on his 3DS than he can on my PSVita in a month. Loser has to buy the winner a game on his/her handheld Guess who won? http://gamrconnect.vgchartz.com/thread.php?id=193531

Me!

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DerNebel said:
amak11 said:
DerNebel said:
amak11 said:


Profit is not revenue, and we are talking about revenue in this thread. I injected it as a comparison, whether you are inclined to agree or disagree with my statement is entirely on you. Nintendo is not in the red. This is fact that you are not understanding. My prediction is they are not in the red and hopefulling making revenue. besides this thread is FOR FACT talking about whether Nintendo would make revenue (which is enough money to pay your expenses) if they are third party. They would not make any additional revenue meaning they would post considerably larger losses. The chances are at Nintendo's current employee number Nintendo would never  make profit on third party life. 

You should look up revenue, cause you don't seem to understand what it actually is.


i suggest you look at it. Revenue is money made to cover your expenses. Profit is revnue less expenses. This thread is about whether or not Nintendo can keep revenue if they went third party. I've done enough business courses and extracurricular business programs to know this. 

http://www.answers.com/Q/Difference_between_profit_and_revenue

Revenue is money made by business activities, simple as that, expenses have nothing to do with it.

So this expressions you used

"hopefully making revenue"

makes no sense. To not make revenue Nintendo would have to literally not sell anything.


Profit is revenue  minus expenses. Which is what a majority of people are here seem to be talking about. There is other ways to not make revenue as well, aka spending more than you make. Revenue is required to keep a business running. You can have revenue and not profit (it's pointless to even try if this the scenario), but you can't have profit without revenue. It's a mutually exclusive pairing. 

You're just heavily confused on the subject. 

http://www.steverrobbins.com/articles/profit-and-cash-flow-explained.htm

Considering Nintendo's current revenue and profit are based on sales of hardware and software, if they went straight software their revenue stream would be majorly cut off for a few years (you can't make that up on software quickly). Though with that there is now less expenses, but it still would eat at Nintendo for a few years. 



amak11 said:
DerNebel said:

Revenue is money made by business activities, simple as that, expenses have nothing to do with it.

So this expressions you used

"hopefully making revenue"

makes no sense. To not make revenue Nintendo would have to literally not sell anything.


Profit is revenue  minus expenses. Which is what a majority of people are here seem to be talking about. There is other ways to not make revenue as well, aka spending more than you make. Revenue is required to keep a business running. You can have revenue and not profit (it's pointless to even try if this the scenario), but you can't have profit without revenue. It's a mutually exclusive pairing. 

You're just heavily confused on the subject. 

http://www.steverrobbins.com/articles/profit-and-cash-flow-explained.htm

Considering Nintendo's current revenue and profit are based on sales of hardware and software, if they went straight software their revenue stream would be majorly cut off for a few years (you can't make that up on software quickly). Though with that there is now less expenses, but it still would eat at Nintendo for a few years. 

No, I'm not confused at all. And no the bolded is not possible. Read your own link, it explains it.

I understand and know all those things you've mentioned, for gods sake I study them.

My simple point is that you've, twice now, said something about revenue that makes no sense.

1. Nintendo doesn't need to hope that they make revenue, they'd literally have to stop selling anything for them to not make any revenue.

2. Spending more than you make does not mean you're not making revenue. It means you're making an Operating Loss. The revenue is still very much there.



I don't understand the Nintendo 3rd party thing. I mean, both Nintendo and Microsoft have already made games for PC. Why can't Sony?



XanderXT said:
I don't understand the Nintendo 3rd party thing. I mean, both Nintendo and Microsoft have already made games for PC. Why can't Sony?


Sony has aswell. Planetside 2 for example is developed by Sony, and is a pc game.



Teeqoz said:
XanderXT said:
I don't understand the Nintendo 3rd party thing. I mean, both Nintendo and Microsoft have already made games for PC. Why can't Sony?


Sony has aswell. Planetside 2 for example is developed by Sony, and is a pc game.


I meant a Sony Computer Entertaiment game, not Sony Online Entertainment game. I want inFamous or Jak and Daxter on my PC without emulators.