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Forums - Nintendo Discussion - Did the Nintendo Unified Strategy Work?

 

Who will win by 2030?

Rule of Two Era 0 0%
 
Unified Era 16 100.00%
 
Total:16
Dulfite said:
VAMatt said:
Nintendo is still doing two things - they're doing a hybrid, and they're making mobile games. I really don't think it has been a fundamental change on Nintendo's part. They're still hitting two relatively distinct segments of the gaming market, just as they have for the last 25 years.

Yeah but their aren't spending money on really making a bunch of mobile games like they used to with handhelds. They make like 1-2 mobile games a year on average, all of which cost a whole lot less than full fledged games on a handheld.

That is the point of this thread. Their expenses are down because of this consolidation.

Their expenses have never been higher...

Selling, general & administrative expenses (in Millions of Yen)

1999 - 105,582 MY
2000 - 95,709 MY
2001 - 99,342 MY
2002 - 101,114 MY
2003 - 95,488 MY
2004 - 99,888 MY
2005 - 105,653 MY
2006 - 124,766 MY
2007 - 171,787 MY
2008 - 212,840 MY
2009 - 238,378 MY
2010 - 218,666 MY
2011 - 216,889 MY
2012 - 190,975 MY
2013 - 176,764 MY
2014 - 209,645 MY
2015 - 189,814 MY
2016 - 188,083 MY
2017 - 169,535 MY
2018 - 225,983 MY
2019 - 251,488 MY



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Dulfite said:
VAMatt said:
Nintendo is still doing two things - they're doing a hybrid, and they're making mobile games. I really don't think it has been a fundamental change on Nintendo's part. They're still hitting two relatively distinct segments of the gaming market, just as they have for the last 25 years.

Yeah but their aren't spending money on really making a bunch of mobile games like they used to with handhelds. They make like 1-2 mobile games a year on average, all of which cost a whole lot less than full fledged games on a handheld.

That is the point of this thread. Their expenses are down because of this consolidation.

Their expenses are not down (as evidenced above).  But, I get your point.  Mobile games takes a much smaller portion of their resources than handheld games did.  So, they can (theoretically, at least) make more and better Switch games.  

I guess my counter would be that it's too early to judge how well this is working, or if it is really even happening.  They've really just started dipping their toe into mobile gaming in the last couple of years.  They've had success, so  I expect that they will do more in that space in the future. It may well end up being a big focus for them, much like handhelds were up until a couple years ago.  

It does seem like they've been able to keep the Switch lineup full.  But, they've had a lot of help from Wii U retreads.  Let's see what's going on in the next generation, after they've settled into mobile, and have used up the Wii U hits.  



Barkley said:
Dulfite said:

Yeah but their aren't spending money on really making a bunch of mobile games like they used to with handhelds. They make like 1-2 mobile games a year on average, all of which cost a whole lot less than full fledged games on a handheld.

That is the point of this thread. Their expenses are down because of this consolidation.

Their expenses have never been higher...

Selling, general & administrative expenses (in Millions of Yen)

1999 - 105,582 MY
2000 - 95,709 MY
2001 - 99,342 MY
2002 - 101,114 MY
2003 - 95,488 MY
2004 - 99,888 MY
2005 - 105,653 MY
2006 - 124,766 MY
2007 - 171,787 MY
2008 - 212,840 MY
2009 - 238,378 MY
2010 - 218,666 MY
2011 - 216,889 MY
2012 - 190,975 MY
2013 - 176,764 MY
2014 - 209,645 MY
2015 - 189,814 MY
2016 - 188,083 MY
2017 - 169,535 MY
2018 - 225,983 MY
2019 - 251,488 MY

These are relatively close to each other compared to the operating profit, which means if you adjust for inflation then the average expenses for 2017-2019 is considerably lower than the average for 2002-2016 expenses. Those would be numbers I'd like to see.



VAMatt said:
Dulfite said:

Yeah but their aren't spending money on really making a bunch of mobile games like they used to with handhelds. They make like 1-2 mobile games a year on average, all of which cost a whole lot less than full fledged games on a handheld.

That is the point of this thread. Their expenses are down because of this consolidation.

Their expenses are not down (as evidenced above).  But, I get your point.  Mobile games takes a much smaller portion of their resources than handheld games did.  So, they can (theoretically, at least) make more and better Switch games.  

I guess my counter would be that it's too early to judge how well this is working, or if it is really even happening.  They've really just started dipping their toe into mobile gaming in the last couple of years.  They've had success, so  I expect that they will do more in that space in the future. It may well end up being a big focus for them, much like handhelds were up until a couple years ago.  

It does seem like they've been able to keep the Switch lineup full.  But, they've had a lot of help from Wii U retreads.  Let's see what's going on in the next generation, after they've settled into mobile, and have used up the Wii U hits.  

If they know they can make games as simple and easy as Mario Run or Animal Crossing Pocket Camps, which don't have 150+ people working on each like a AAA game would, and make a butt load of cash why would they bother to ever make full fledged games that are expensive on phones?

I think they will continue making mobile games, maybe even more, but we won't ever get AAA or even AA games from Nintendo on mobile because they don't need to be to make crazy profits.

Console games on the other hand will always require higher production costs because that's what gamers expect, and they also sell for a lot more each.



VAMatt said:

Their expenses are not down (as evidenced above).  But, I get your point.  Mobile games takes a much smaller portion of their resources than handheld games did.  So, they can (theoretically, at least) make more and better Switch games.  

I guess my counter would be that it's too early to judge how well this is working, or if it is really even happening.  They've really just started dipping their toe into mobile gaming in the last couple of years.  They've had success, so  I expect that they will do more in that space in the future. It may well end up being a big focus for them, much like handhelds were up until a couple years ago.  

It does seem like they've been able to keep the Switch lineup full.  But, they've had a lot of help from Wii U retreads.  Let's see what's going on in the next generation, after they've settled into mobile, and have used up the Wii U hits.  

No, that won't happen. Nintendo's strategy for smart devices continues to be the same as it has been since the beginning, so game development for smart devices will not even remotely be similar to how it was for handheld consoles. Nintendo's activities on smart devices fall into the same category as the openings of Nintendo retail stores, the partnership with Universal Studios for an amusement park and the creation of movies based on Nintendo IPs. All those things are about Nintendo IPs having a presence outside of their core business and none of those things are set up to become replacements for their core business.

You can read up on Nintendo's fundamental corporate strategy here (pages 1-3):
https://www.nintendo.co.jp/ir/pdf/2020/200131_2e.pdf

Beyond that, you have to remember that it's completely unrealistic to develop games for smart devices like it would be done for handheld consoles. People aren't going to pay any noteworthy sums upfront for games on smart devices, so even if you doubt that Nintendo will continue to follow their basic outlined strategy, the realities of the market should make it clear that it's not feasible to develop substantial games for smart devices.



Legend11 correctly predicted that GTA IV (360+PS3) would outsell SSBB. I was wrong.

A Biased Review Reloaded / Open Your Eyes / Switch Shipments

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It's a fail. They shrunk their addressable market. They replaced a successful home and mobile business with a mobile only business, and are selling worse than the 3DS but have no home console sales at all. You can't spin Nintendo leaving the market as a success. If Microsoft stopped making an Xbox, that isn't a success.



Alistair said:
It's a fail. They shrunk their addressable market. They replaced a successful home and mobile business with a mobile only business, and are selling worse than the 3DS but have no home console sales at all. You can't spin Nintendo leaving the market as a success. If Microsoft stopped making an Xbox, that isn't a success.

You are on fire today. Keep striking the iron while it's hot.



Legend11 correctly predicted that GTA IV (360+PS3) would outsell SSBB. I was wrong.

A Biased Review Reloaded / Open Your Eyes / Switch Shipments

Alistair said:
It's a fail. They shrunk their addressable market. They replaced a successful home and mobile business with a mobile only business, and are selling worse than the 3DS but have no home console sales at all. You can't spin Nintendo leaving the market as a success. If Microsoft stopped making an Xbox, that isn't a success.

Hahahahaha. I change my opinion, you should win the Greatest User Tournament for being the funniest person on VGC. And you're really on fire now with the released quarterly data from Nintendo that proves how successful 2014 cell phone hardware can be.



3DS-FC: 4511-1768-7903 (Mii-Name: Mnementh), Nintendo-Network-ID: Mnementh, Switch: SW-7706-3819-9381 (Mnementh)

my greatest games: 2017, 2018, 2019, 2020

10 years greatest game event!

bets: [peak year] [+], [1], [2], [3], [4]

I am on fire today. Take a look at the front page of this website:

http://www.vgchartz.com/article/442227/switch-vs-3ds-in-japanvgchartz-gap-chartsdecember-2019/

Switch can't even match the 3DS never mind the DS in Japan, and Japan is Switch's top market. 3DS plus Wii U outsold the Switch. That is a fail. Leaving a market and conceding defeat is not a sign of strength. The Switch is universally hated by Nintendo home console lovers. It is selling to the old market, the same people who bought their mobile hardware (which I've never bought).

Also, if you want to know how much you should actually be paying for a Switch home console, look at the new version of the nVidia shield. It is selling for $130 at the store near my home. The new model. So considering nVidia's profit margins are much higher than Nintendo's, I'm sure Nintendo can sell a home console version of the Switch for $130 also. But they shouldn't. They should make it 3x faster first and make it $199 instead.

I don't feel happy paying $300 to buy a $130 home console, and having PS3 graphics in 2020. With no controller included (and let's not call the joycon grip a controller, that is marketing, not a controller).

❌ BANNED: Trolling (throughout the entire thread) ~ CGI

Last edited by CGI-Quality - on 31 January 2020

Alistair said:

I am on fire today. Take a look at the front page of this website:

http://www.vgchartz.com/article/442227/switch-vs-3ds-in-japanvgchartz-gap-chartsdecember-2019/

Switch can't even match the 3DS never mind the DS in Japan, and Japan is Switch's top market. 3DS plus Wii U outsold the Switch. That is a fail. Leaving a market and conceding defeat is not a sign of strength. The Switch is universally hated by Nintendo home console lovers. It is selling to the old market, the same people who bought their mobile hardware (which I've never bought).

Also, if you want to know how much you should actually be paying for a Switch home console, look at the new version of the nVidia shield. It is selling for $130 at the store near my home. The new model. So considering nVidia's profit margins are much higher than Nintendo's, I'm sure Nintendo can sell a home console version of the Switch for $130 also. But they shouldn't. They should make it 3x faster first and make it $199 instead.

You have my vote for Greatest User as well.



Legend11 correctly predicted that GTA IV (360+PS3) would outsell SSBB. I was wrong.

A Biased Review Reloaded / Open Your Eyes / Switch Shipments