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Forums - Nintendo - Pokemon Go Success Shows That Nintendo Should Go Full Mobile and call Quits on Consoles/Handhelds!

Mr.GameCrazy on 12 July 2016
Gamemaster87 said:
agreed. NX will be doa. Nintendo's future is mobile.

You didn't read the OP, did you?



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potato_hamster on 12 July 2016
Kai_Mao said:
potato_hamster said:

And here you arre acting like Nintendo is making their own platform out of the goodness of their hearts. If they continue to have large success on mobile platforms, Nintendo might be better off spreading their IPs to other platforms rather than make their own because of profit. They're a publicly traded company. They have shareholders they are beholden to.  Period.

If it makes more financial sense (especially long term) to make PS5, XB2, and mobile games than to make their own hardware, that is likely the direction they will take. If it makes more financail sense to keep making their own hardware they will. It all comes down to dollars and sense. Nothing more, nothing less.

But right now, it's not like they're losing money in their handheld/console business, just not profiting enough to be satisfied. At this point, they can't do much with the Wii U and the 3DS is doing all it can to maintain some sort of consistency. This, they're moving towards the NX. What's wrong with having multiple divisions within their business surrounding their core business? Mobile, theme parks, movies, merchandise, amiibo, etc. have a job in exposing the brand while Nintendo continued their console business. Allowing Nintendo to be a multi-media business could serve them well in the long run. I mean, we've seen concerts feat. the Squid Sisters (which did show in Europe just recently) and a Kirby restaurant just recently along with Pokemon Go and Miitomo. Again, we'll see, but Nintendo is also about pride and wanting to integrate hardware with software. That's why they're trying to be aware of how mobile works and how the apps can help others invest in their own hardware. If Sony and Microsoft are multi-media businesses with dedicated hardware, why can't Nintendo be as well (not to their extent but enough to expand their IPs to broader horizons)?


Here's what people continue to fail to understand - it's not about not losing money at all. It's about maximizing profit. If it is more profitable to pour all of its resources into mobile games and making their games on other platforms, Nintendo will do that. If its more profitable to pour 50% of its resources into mobile games and 50% into classic Nintendo hardware and games, then Nintendo will do just that.

Nintendo will literally do whatever they think will generate the most profit for the company long term. They are beholden to shareholders to do that. Nintendo isn't about pride. It isn't about integrity, or making fun games for good prices that its fan will love., its about making as much money as possible for the company, and that is it.

If someone turns around tomorrow and offers Nintendo $100 Billion for all the Super Mario IP, Nintendo will sell it in a heartbeat.

It's the same reason why Crash Bandicoot is no longer a Sony IP. Sony felt when they sold the IP that it would be more profitable long term to sell the IP than to keep him in their stable. Because money. Nothing more. Nothing less.



Acevil on 12 July 2016
Mr.GameCrazy said:
Gamemaster87 said:
agreed. NX will be doa. Nintendo's future is mobile.

You didn't read the OP, did you?

He is running and gunning, it is fun to watch. 



 

Mr.GameCrazy on 12 July 2016
Acevil said:
Mr.GameCrazy said:

You didn't read the OP, did you?

He is running and gunning, it is fun to watch. 

At least we don't have to worry about him anymore since he's been permabanned (unless he makes another account to ban dodge).



naruball on 12 July 2016
SpokenTruth said:
Guess I'll keep posting it until everybody understands.


Nintendo revenue last fiscal year (ended March 31st, 216) = ~$4.9 billion USD.

Pokemon Go daily revenue estimate = $1.6 million.

x 365 days = $584 million (if usage never drops). Nintendo will get ~10% (directly) + ~9% (Pokemon Company) = 19% of $584 million = ~$111 million.

~$4.9 billion > ~$111 million.


In other words, it would take 44 mobile hits equivalent to Pokemon Go every single year to replace their current business model.

Keep posting it all you want. Your math is wrong. Simple as that.



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Kai_Mao on 12 July 2016
potato_hamster said:
Kai_Mao said:

But right now, it's not like they're losing money in their handheld/console business, just not profiting enough to be satisfied. At this point, they can't do much with the Wii U and the 3DS is doing all it can to maintain some sort of consistency. This, they're moving towards the NX. What's wrong with having multiple divisions within their business surrounding their core business? Mobile, theme parks, movies, merchandise, amiibo, etc. have a job in exposing the brand while Nintendo continued their console business. Allowing Nintendo to be a multi-media business could serve them well in the long run. I mean, we've seen concerts feat. the Squid Sisters (which did show in Europe just recently) and a Kirby restaurant just recently along with Pokemon Go and Miitomo. Again, we'll see, but Nintendo is also about pride and wanting to integrate hardware with software. That's why they're trying to be aware of how mobile works and how the apps can help others invest in their own hardware. If Sony and Microsoft are multi-media businesses with dedicated hardware, why can't Nintendo be as well (not to their extent but enough to expand their IPs to broader horizons)?


Here's what people continue to fail to understand - it's not about not losing money at all. It's about maximizing profit. If it is more profitable to pour all of its resources into mobile games and making their games on other platforms, Nintendo will do that. If its more profitable to pour 50% of its resources into mobile games and 50% into classic Nintendo hardware and games, then Nintendo will do just that.

Nintendo will literally do whatever they think will generate the most profit for the company long term. They are beholden to shareholders to do that. Nintendo isn't about pride. It isn't about integrity, or making fun games for good prices that its fan will love., its about making as much money as possible for the company, and that is it.

If someone turns around tomorrow and offers Nintendo $100 Billion for all the Super Mario IP, Nintendo will sell it in a heartbeat.

It's the same reason why Crash Bandicoot is no longer a Sony IP. Sony felt when they sold the IP that it would be more profitable long term to sell the IP than to keep him in their stable. Because money. Nothing more. Nothing less.

If that was the case, should have they jumped ship when the GameCube was not selling well? Yes, the times were different, but the PS2 sold really, really well and people thought Nintendo should've gone third party then.

And haven't anyone tried to offer billions for the Mario IP? Wonder how that went..



Soundwave on 12 July 2016
SpokenTruth said:
Soundwave said:

Pokemon Go is just at the beginning of its tail cycle though, it's not even released in many major markets worldwide, also the take home revenue on mobile once the game is developed is almost pure profit whereas physical goods like game hardware have a much, much lower profit margin while they have high revenue. 

Pokemon Go I think the potential to get to Candy Crush sized numbers of 500 million (half a billion!) installs. Maybe even less at 350-400 million would still be enormous. 

Also Nintendo will get a bigger cut of future titles as for sure now they know to self-publish all their mobile games (they don't need Niantic to do that) and their own IP like Animal Crossing and Fire Emblem and (gulp) perhaps Mario Kart ... they fully own all those IP. 

Revenue is not what drives business models anyway .... profit does. 5 million Wii Us sold at $300 a pop is over $150 billion in revenue, but only likely $50-$100 million in profit.

This volume is not sustainable.   And installs is irrelevant if you're not getting IAPs.  Candy Crush did great but net profit across all 10 of their major games at their peak was only $575 million (back in 2014).   Nintendo did nearly that net income in 2015 despite the Wii U.

And while profit is obviously a good thing, revenue is just as important for a publicly traded company. For instance, Amazon rakes in huge revenue and damn no profit at all (losses for nearly 2 decades). 

 

That said, it's absolutely asinine to chase one profit model at the exclusion of another.  Like the Internet meme says, "Why not both?"  Especially when they can work as marketing and advertising components for each other.

 

Finally, your 5 million Wii U figure ignores software and portable games.

The issue is though games like Pokemon GO show there is a monstrous audience for Nintendo games ... they just don't choose to buy Nintendo hardware. 

So the "why not both?" strategy is problematic, because well then does that mean mobile gets Mario Kart too? Or are you keeping that away from mobile to keep it exclusive to a portable (or worse, a Nintendo home console) and thus limiting its sales potential.

And if you put say Mario Kart or the main Pokemon/Animal Crossing/Fire Emblem games on mobile (even perhaps releasing an official Nintendo controller) ... then what does that do to dedicated Nintendo portables? That's kinda the problem, something has to give in that equation. 

My suspicion is Nintendo's investors are going to start to hound them to be more aggressive with their IP usage. Clearly Nintendo are sitting on a gold mine, but these IP are locked into declining hardware formats which have limited Nintendo's profit potential big time. 

This is going to be a dilemma I suspect is happening in Nintendo's board rooms this week too ... I mean what about a Mario Kart iOS/Android? Do you say no and leave probably $1 billion+ dollars on the table? I don't think they expected mobile to blow up so quickly for them. 



man-bear-pig on 12 July 2016

Indubitably



My prediction threads:

Wii U will sell under 40m units (made on 14th September 2012)

PS Vita will sell under 20m units (made on 30th September 2012)

Wii U will sell under 7m in 2013 - I was right

Halo 4 first 9 weeks sales prediction

PS4 to be down YOY in 2015

Platina on 12 July 2016

I agree completely

with the title :p



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PAOerfulone on 13 July 2016

OR
What if instead of taking one over the other, why don't they use the momentum they gained off of one to help them capitalize on the other? They make so much money off of mobile, that they'll feel free and loose enough to to really spend some of those chunks of gold they found in the new mine to really beef up and (dare I say at the risk of pissing off my fellow Nintendo breathren), modernize their consoles (Which would be just one system instead of 2 or 3 per generation) and in turn, bring back some of the core/dedicated gaming audience that they lost a lot of to Sony (and Microsoft) since the PS1-N64 days? They might take a loss per console sold, as would be expected, but between mobile, amiibos, their software sales, and then eventually movies and the amusement park, they'd make that lost money back 5-10 times over. And because they'd have powerful hardware that's on par with Sony and Microsoft, as well as online servers/features, an eShop, achievement system, etc. that's on par with Sony and Microsoft, they'd get the same level of 3rd party support to go along with their 1st party games. Thus, the droughts that plague the Wii U (and to lesser degree the 3DS) would cease to exist.
I don't know about you guys, but I would damn sure love to be able to play on a Nintendo system that has:
Mario
Zelda
Pokemon
Fire Emblem
Splatoon
Smash Bros. and all their other IPs to go along with a consistent stream of 3rd party games which include:
Call of Duty
Madden/FIFA/NBA 2K
Grand Theft Auto
Final Fantasy
Kingdom Hearts
Assassin's Creed
Elder Scrolls
and every other multiplatform 3rd party game!
And maybe, with a system that's on par with Sony and Microsoft, along with the huge success that they'd have with mobile gaming, it'd be possible that Nintendo would be the number 1 choice for a console, rather than a backup to Sony or Microsoft's at best, or completely nonexistent at worse.



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