Teeqoz said:
Miyamotoo said:
You probably dont know, but half of profit Nintendo is making from hardware and addons for that hardware. Do you know how money Nintendo made just from selling Wii Remotes, Motion Plus, Nunchuck, Wheels...whitout profit from hardware!? For instance build price for Wii Remote was around $10-15 and Nintendo were selling then at $60, and they sold tens of milions (probably more than 100m) of Wii Remotes.
Second is when you have your own platform you don't pay royalties to anyone, you have whole profit just for itself.
Not to mention that when you have your own platform and software you have completely freedom and control of your whole business.
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http://kotaku.com/5672972/its-official-nintendo-has-sold-a-ridiculous-amount-of-wii-remotes
20 million Wii remotes were sold standalone in the US. While that is just US, and as of 2010(30th september to be precise.), it proves that in all likelihood, the number is no where near the over 100 million you're claiming. If, for simplicity's sake, we assume that on average, the amoun of standalone controllers = 70% of how many consoles are sold, then yes, with a platform like the Wii, that would be a lot. However with numbers like the Wii U is pulling now, that would equal a bit more than 7 million controllers. It's a question of wether extra sales cover what they lose by not having their own hardware like I said. There are of course more factors than just what I said, I only mentioned a few. However can you provide a source that hardware and accessories make up 50% of their profit? Cause profit margins are much higher for software than hardware normally.
I am aware of what you are saying here, but my post was a simplification. I didn't attemp to go too indepth, because the post would be ridiculously long.
You have complete control of your own business as a publisher as well. Their business would be making and publishing games, and they would have full control of that.
If Nintendo's home consoles keep on selling Wii U like numbers, then I honestly think they'd be better off going 3rd party whwn it comes to home consoles (Not handhelds). If they can manage to get a userbase of 30-40 million, then that's probably sufficient for it to be better for them to keep on making hardware.
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That article is saying that Nintendo sold 22m separate Wii Remotes and another 13m with Wii Play (game that is basically very cheap and probably would cost around $20 without Wii Remote) in US alone by 2010. So totally sold WW separates Wii Remotes till now are probably around 70-80m with Wii Play bundle definitely around 100m (thats around 100m without console bundle). Do you realize what profit just Wii Remote bring to Nintendo!? We are talking about billions just from Wii Remote.
Wii U is fail and will be worst Nintendo selling console, but that definatly doesnt means they need to abondend hardware and go third party only beacuse of Wii U.
I confused profit with and revenue. Nintendo always mad profit from launch of new hardware, only exceptions were Wii U and 3DS when they made lose at launch. And biggest profit (if we look build and sale price) is definitely from console accessories.
"One of Nintendos secrets of their success (over 36 years in the gaming market and only one year with net loss) is the well known fact that
they sell their hardware for more than the production price. (3DS & Wii U being the exception).
Furthermore, their software margins are extremely high because they don't have to pay royalties and don't have to share the price between developer & publisher.
The graph shows us that Nintendo always worked around a gross profit ratio of 40%. One of the reasons why Nintendo
earned money during the GCN-days, while Sony made loss, despite PS2 being the best selling home system to date.
Now, if you look at this, gross profit ratio always declined a bit with the release of new hardware, which is logical, because they're selling it
at a price near to the production price, higher sales give them lower production costs and better margins, so they increase again until the next hardware release.#
http://www.neogaf.com/forum/showthread.php?t=740455
You definitely not have same rights, control and freedom when you releasing game on other platform and when you releasing game on yours own platform.
Well I really can't see next Nintendo home console that will sell so poor like Wii U, we already know that NX will probably be unified platform, so that's entirely new level of console and software development for Nintendo, they already integrate their handhelds and home consoles divisions, that means they will be able to make more game than this gen and probably sell same game to NX home console and to NX handheld owners.
