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Forums - Nintendo Discussion - Nintendo spend $527M in R&D in the FY'15 according to Technavio

elektranine said:
jason1637 said:

How much a company spends on a console doesnt really determine how successful it will be.

Look at the wii.

Also we don't know how much the spent on the NX. We only know that 627m was spent on r&d in 2015.

Yes let's look at the Wii, let's look at the Wii:

The was released and sold well for a period of time and then didn't sell nearly as well. There was a mass hysteria surrounding the Wii propelled by the media, such as CNN, Fox, ABC, NBC, etc, promoting it as a "must have" device. Basically it was cool to own one. Many non-gamers bought this device just because their friends had ones. Nintendo reported alarming statistics such as less than 40% of Wiis were ever connected to the internet and very low software attach rates.

This obviously didn't happen with the Wii U and almost certainly won't happen with the NX either. Besides I don't think anybody wants another Wii with its low attach rates it failed to attract much hardcore games from developers and what was on there were poorly designed motion controls ala 3rd party shovelware.

 

Besides the main premise of this thread is to discuss the R&D costs of the NX. Many say the NX is supposed to be more powerful than the PS4 but with such low R&D Costa it likely will not. See my above post on how people are overstating Nintendo's true console R&D costs.

this is probably the worst post i've seen in a long time.  Yeah, i'm sure Nintendo wouldn't want to make 10 billion + dollars again, that kinda sucked didn't it.  Most successful Nintendo console ever and most profitable console of all time.  It's cool though, lets just make up attach rates that are false and call it a day.



currently playing: Skyward Sword, Mario Sunshine, Xenoblade Chronicles X

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Official R&D numbers are garbage and completely worthless to look at. All companies pump as much into this category as they can as various governments give all sorts of tax benefits/credits when something is listed as R&D. So you will see anything from regularly maintenance to game development to new console research in this category and regardless of whether it is a huge or quiet year for the company it will always be a huge category.



JWeinCom said:
elektranine said:

Ah yes the oft repeated yet incorrect theory that Nintendo can just stick off the shelf parts in the NX and be more powerful.

Ask yourself this, why 29 months later can you still not buy an APU more powerful than the PS4's APU?

The PS4's APU is a fully custom chip the result of years of R&D by SCE's engineers and AMD's engineers with billions in R&D costs all fronted by SCE. The PS4 APU cost less than $50 at launch to manufacture yet AMD still has not released a APU coming even remotely close to that APU in terms of power.

Surely AMD would have released that chip on PC had they been legally able to do so. It would had a pretty capable chip to go after PC gamers with and since its cheap to make they could have priced it at $100-$150 and still made a killing. However that never happened and never will happen.

The custom chip that SCE and AMD co-developed is the property of SCE and they have the exclusive rights over it. AMD can't use any knowledge from the development of the PS4 APU in any other projects. They are legally bound by contract and NDA. That's why we still do not know the PS4's CPU clock speed and there are still key technologies implemented in the PS4 APU that are missing from AMD's retail APUs and GPUs. SCE went to AMD and contracted them to provide a reference design and to work with them to heavily customize that tech. 

This is why Nintendo has to pay big bucks to beat the PS4. They have to go to AMD and pay the R&D costs to develop a new better APU, as AMD legally cannot use any knowledge they learned from SCE. Or they have to go with a discreete CPU/GPU combo but that would still be constly and drastically increase the cost of the NX console. The thrid option would be to pick an existing retail APU and customize it to their liking but that would still be less powerful the the PS4 but maybe more than the xbone.

It's a semi custon APU and it's based mainly on existing AMD technology

In the case of the PS4, we leveraged the building blocks of our 2013 product roadmap – the same technologies you find in the latest AMD APUs powering PCs, ultrathin notebooks and tablets – to create a solution that incorporates our upcoming, low-power AMD "Jaguar" CPU cores with next-generation AMD Radeon™ graphics delivering nearly 2 TFLOPS of compute performance!"

It's just not some magical proprietary hardware. It's a modified AMD APU.  Since it is, according to AMD, based on their existing technology, there doesn't seem to be a reason they couldn't make something similar for Nintendo.

They cannot sell that exact chip, but there are similar ones.  It's based on a mobile chipset, so it would be limited to gaming laptops really.  Even if they could sell the exact same APU, they likely wouldn't.  It was made specifically for consoles.  It is very heavy on the GPU part which becomes a bottleneck when you're running a bunch of different things as you often would on a PC.  It also includes a lot of elements that PC gamers would normally keep seperate.  The advantage of having a merged APU and CPU wouldn't appeal to desktop gamers who could buy more powerful CPU and GPUs seperately.

http://www.pcworld.idg.com.au/article/454508/amd_opens_up_about_playstation_4_custom_processor/

That is just an arcticle based on a routine email for those on AMD's mailing list. I've already said that SCE went to AMD for a reference design but they took that reference design and used that to create a new custom APU chip orders of magnitude more powerful and supporting new technologies not found even in AMD's current APU chips.

How does the PS4 APU become 1200% (12x) more powerful than even most high end APUs released in 2013?

How is it that even AMD's newest announced APUs (not even released yet) are still outclassed by the PS4 by over 2x?

All this extra power & technologies (such as HSA, hUMA) are not found in AMD's retail lineup because AMD does not own the rights to manufacture them. SCE paid alot of money to license the reference design & then customize it. Nintendo would have to do the same. But they lack SCE's engineering background. SCE created a whole new architecture, the cell. Nintendo has never done anything quite to that magnitude so they would have to rely on AMD which would largely increase the R&D costs. So spending a few hundred million $ in a single year doesn't really support this happening. More likely Nintendo is taking an AMD retail APU increasing things like clock speed, memory, etc and ending up with something about as powerful as the xbone.



elektranine said:
JWeinCom said:

It's a semi custon APU and it's based mainly on existing AMD technology

In the case of the PS4, we leveraged the building blocks of our 2013 product roadmap – the same technologies you find in the latest AMD APUs powering PCs, ultrathin notebooks and tablets – to create a solution that incorporates our upcoming, low-power AMD "Jaguar" CPU cores with next-generation AMD Radeon™ graphics delivering nearly 2 TFLOPS of compute performance!"

It's just not some magical proprietary hardware. It's a modified AMD APU.  Since it is, according to AMD, based on their existing technology, there doesn't seem to be a reason they couldn't make something similar for Nintendo.

They cannot sell that exact chip, but there are similar ones.  It's based on a mobile chipset, so it would be limited to gaming laptops really.  Even if they could sell the exact same APU, they likely wouldn't.  It was made specifically for consoles.  It is very heavy on the GPU part which becomes a bottleneck when you're running a bunch of different things as you often would on a PC.  It also includes a lot of elements that PC gamers would normally keep seperate.  The advantage of having a merged APU and CPU wouldn't appeal to desktop gamers who could buy more powerful CPU and GPUs seperately.

http://www.pcworld.idg.com.au/article/454508/amd_opens_up_about_playstation_4_custom_processor/

That is just an arcticle based on a routine email for those on AMD's mailing list. I've already said that SCE went to AMD for a reference design but they took that reference design and used that to create a new custom APU chip orders of magnitude more powerful and supporting new technologies not found even in AMD's current APU chips.

How does the PS4 APU become 1200% (12x) more powerful than even most high end APUs released in 2013?

How is it that even AMD's newest announced APUs (not even released yet) are still outclassed by the PS4 by over 2x?

All this extra power & technologies (such as HSA, hUMA) are not found in AMD's retail lineup because AMD does not own the rights to manufacture them. SCE paid alot of money to license the reference design & then customize it. Nintendo would have to do the same. But they lack SCE's engineering background. SCE created a whole new architecture, the cell. Nintendo has never done anything quite to that magnitude so they would have to rely on AMD which would largely increase the R&D costs. So spending a few hundred million $ in a single year doesn't really support this happening. More likely Nintendo is taking an AMD retail APU increasing things like clock speed, memory, etc and ending up with something about as powerful as the xbone.

The GameCube was an amazing chip that outperformed Ken Kutaragi's ballyhooed PS2 for $100 less. The CELL was a design disaster which got Ken Kutaragi fired.

AMD does most of the work here really, they make GPUs, if Sony/Nintendo were so good at it they would make their own, but they don't and are well advised to not. 

The R&D cost of the chip is not really so much the issue. The R&D cost of SOFTWARE development is more the issue nowadays, sure you can have a 3 TFLOP machine. 4 TFLOP. Fuck. Make it 5 TFLOP. 

The real question is who the hell is going to develop for that and at point does pushing such a chip to its limits basically mean that a developer has to gamble with its future existence? 

The PS4 and XB1 GPUs from my understanding aren't even that different, MS was so butthurt from the RROD on the 360 that they played it probably too safe. It's not like Sony had some magic powder in their chip that only they could create. 



zorg1000 said:
ZhugeEX said:

It's all in Nintendo annual report. 

https://www.nintendo.co.jp/ir/en/library/annual/

 

Here is a break down for you guys if you're interested-

 

This is how much Nintendo have spent on Research & Development:
FY2015: $527m
FY2014: $696m
FY2013: $567m
FY2012: $642m
FY2011: $363m


This is how much Nintendo have spent on Advertising:

FY2015: $456m

FY2014: $682m

FY2013: $650m

FY2012: $909m

FY2011: $1,160m

idk why this is interesting news then, its less than the last 3 years.

consoles take many years of development, the bulk of the effort and research involved in designing the NX would have happened in the last few years. it makes perfect since.

the MARKETING budget should go up for this year compared with the last few, not the R&D



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That list above with profit/loss for MS/Sony & nintendo is very inaccurate as it compares different things for all 3 companies.



JWeinCom said:
Dunban67 said:

What is the source fothis graph?   I don t think it is acurate as the profit loss for Sony and MSFT gaming divsions were not "broken out" during these years-  This graph has ben around a while and seems to be taken as fact but there is no way it could be and i doubt the Sony or MSFT part of it is remotley acurate

I do believe that I've seen this one backed up by financial figures... but you can ignore the chart if you want.  Instead, we can use recent numbers.

In 2014 Sony lost 78 million http://www.gamesindustry.biz/articles/2014-05-14-sonys-game-division-reports-full-year-loss

In 2015 they made 400 million  http://www.digitaltrends.com/gaming/sony-posts-record-5-74-bil-annual-loss-playstation-division-reports-2-8-bil-loss/

This is accounting for the profits made from PS3 and Vita as well.  Going by the 6 billion figure, they'd have about 5.6 billion dollars until the break even point, and more to account for marketing.  It's kind of unlikely that will happen.

I m not disagreeing w you re sony s R & D   and as you have noted they have started to "break out" their gaming divison # s in recent years after one of their recent restructurings -   I just question that profit and loss chart (re MSFT and Sony at least)  as they did not break out thier video game numbers then and MSFT still does not-   IMO it is one of those internet things that gets used over and over and many assume it is correct becase they have seen it several times



mountaindewslave said:
zorg1000 said:

idk why this is interesting news then, its less than the last 3 years.

consoles take many years of development, the bulk of the effort and research involved in designing the NX would have happened in the last few years. it makes perfect since.

the MARKETING budget should go up for this year compared with the last few, not the R&D

yes i understand that, but the last 4 years are relatively similar for R&D ($500-700m). I dont understand why its a noteworthy topic since it seems pretty standard.



When the herd loses its way, the shepard must kill the bull that leads them astray.

elektranine said:
JWeinCom said:

It's a semi custon APU and it's based mainly on existing AMD technology

In the case of the PS4, we leveraged the building blocks of our 2013 product roadmap – the same technologies you find in the latest AMD APUs powering PCs, ultrathin notebooks and tablets – to create a solution that incorporates our upcoming, low-power AMD "Jaguar" CPU cores with next-generation AMD Radeon™ graphics delivering nearly 2 TFLOPS of compute performance!"

It's just not some magical proprietary hardware. It's a modified AMD APU.  Since it is, according to AMD, based on their existing technology, there doesn't seem to be a reason they couldn't make something similar for Nintendo.

They cannot sell that exact chip, but there are similar ones.  It's based on a mobile chipset, so it would be limited to gaming laptops really.  Even if they could sell the exact same APU, they likely wouldn't.  It was made specifically for consoles.  It is very heavy on the GPU part which becomes a bottleneck when you're running a bunch of different things as you often would on a PC.  It also includes a lot of elements that PC gamers would normally keep seperate.  The advantage of having a merged APU and CPU wouldn't appeal to desktop gamers who could buy more powerful CPU and GPUs seperately.

http://www.pcworld.idg.com.au/article/454508/amd_opens_up_about_playstation_4_custom_processor/

That is just an arcticle based on a routine email for those on AMD's mailing list. I've already said that SCE went to AMD for a reference design but they took that reference design and used that to create a new custom APU chip orders of magnitude more powerful and supporting new technologies not found even in AMD's current APU chips.

How does the PS4 APU become 1200% (12x) more powerful than even most high end APUs released in 2013?

How is it that even AMD's newest announced APUs (not even released yet) are still outclassed by the PS4 by over 2x?

All this extra power & technologies (such as HSA, hUMA) are not found in AMD's retail lineup because AMD does not own the rights to manufacture them. SCE paid alot of money to license the reference design & then customize it. Nintendo would have to do the same. But they lack SCE's engineering background. SCE created a whole new architecture, the cell. Nintendo has never done anything quite to that magnitude so they would have to rely on AMD which would largely increase the R&D costs. So spending a few hundred million $ in a single year doesn't really support this happening. More likely Nintendo is taking an AMD retail APU increasing things like clock speed, memory, etc and ending up with something about as powerful as the xbone.

"That is just an arcticle based on a routine email for those on AMD's mailing list. I've already said that SCE went to AMD for a reference design but they took that reference design and used that to create a new custom APU chip orders of magnitude more powerful and supporting new technologies not found even in AMD's current APU chips."

I really don't give a shit what you said, because you seem to be pulling everything directly from your ass.  I have a statement directly from AMD.  Do you have something more reliable to counter that?

The PS4 APU uses fairly standard Jaguar cores for the CPU, and the GPU is based on the Raedon series.  

"IHow does the PS4 APU become 1200% (12x) more powerful than even most high end APUs released in 2013?"

It doesn't.  AMD's figures for the PS4 (which Sony has used) puts the chip at 1.84 tflops.  The richland series, what was available at the time, is put at 744 gflops.  The difference is a little more than 2x not near 12x.  And that's just comparing the GPUs straight up and not accounting for the fact that the CPUs for richland are far more powerful.   

And of course, tflops is a, at best, poor stat for comparison as the architecture makes a huge difference.  The jaguar cores were not the best that AMD has, then or now.  They are one of the most energy efficient, which is why they were used.

"How is it that even AMD's newest announced APUs (not even released yet) are still outclassed by the PS4 by over 2x?"

I doubt they are because it was barely 2x more powerful than the richland series in in 2013.  But, APUs are generally designed to not be particularly strong. The APU is based on the Jaguar architecture which was not their best architecture at the time and now even less so.

Sony's APU is more powerful (debatably), because they're the only ones who have use for a powerful APU.  APUs are designed for ultra books, lightweight laptops, and for budget gamers. They are not made for high quality gaming. Those who are looking to really build a PC rig would opt for two discrete chips.  And even if they were opting for an APU, they probably wouldn't want such a GPU heavy design.  That makes sense for a dedicated gaming device, but it doesn't make sense for a PC that will likely be used for many other things as well.  And of course AMD makes discrete GPUs that trounce the PS4.

 AMD doesn't make more powerful APUs for the mass market because the mass market doesn't really need them... 

"All this extra power & technologies (such as HSA, hUMA) are not found in AMD's retail lineup because AMD does not own the rights to manufacture them. SCE paid alot of money to license the reference design & then customize it. Nintendo would have to do the same. But they lack SCE's engineering background. SCE created a whole new architecture, the cell. Nintendo has never done anything quite to that magnitude so they would have to rely on AMD which would largely increase the R&D costs. So spending a few hundred million $ in a single year doesn't really support this happening. More likely Nintendo is taking an AMD retail APU increasing things like clock speed, memory, etc and ending up with something about as powerful as the xbone."

Yeah, you just have no clue what you're talking about.  HSA is a technology that was developed jointly with many companies such as ARM, AMD, Samsung, Media Tech and qualcom.  There is actually an organization called the HSA foundation.  They list their key founders.  Sony is not on that list.  AMD's kaveri line off processors use HSA, as do many other products.  It's not a Sony thing.

http://www.hsafoundation.com/

As for hUMA that's another architecture the Kaveri line supports.  It's also something that has not been confirmed for PS4.   It was originally stated that the PS4 would use it, but AMD later said that was inaccurate.  The kabini line, which is the foundation for the PS4 and XBone processors, does not support Huma.  It is possible that the custom versions do somehow support it, but that has not been confirmed.

As for the cell, ye they created the cell.  It cost them 400 million.  About 1/7 of what you are claiming they spent to modify an existing AMD chip.  And... you just said that AMD can't use any of the special knowledge they gained from the development of the PS4 chip, and now you're saying it was Sony simply building on AMD's work... 

And Nintendo is very unliely to do anything like increase clockspeed.  The PS4 GPU clock speed is slightly lower than the XBox GPU, and is about standard for AMD APUs.  Its CPU on the other hand is clocked at a very low speed, about 1/3 of what is available on modern apus.  

Do you have anything to back up anything you're saying?  Do you have something show how much sony's gaming division spent on R&D?  Anything to show that PS4's APU is 12x more powerful than the APUs of the time?  Anything to show how much it would cost to develop a chip like the PS4's?  Anything to show the details of Sony and AMD's deal?  Because it seems like everything you've said is coming directly from your ass.  And while I don't mean to offend your ass, it doesn't seem like a very reliable source.

 

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mountaindewslave said:
zorg1000 said:

idk why this is interesting news then, its less than the last 3 years.

consoles take many years of development, the bulk of the effort and research involved in designing the NX would have happened in the last few years. it makes perfect since.

the MARKETING budget should go up for this year compared with the last few, not the R&D

Well to be fair it just shows that in 2015 the marketing had fallen by quite a bit, and i suspect that it will grow this year.

If you look at those numbers you can see that the time-line also included Wii U release and lifetime (rip) so that would explain why marketing has decreased so much and RnD is lowering towards announcement of the NX.