By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sales Discussion - In the last full FY of 19/20 Nintendo generates more operating profit than Sony(G&NS), Capcom, Square Enix, Ubisoft, Konami, and Sega Sammy combined.

Bofferbrauer2 said:
kazuyamishima said:

Star Wars Jedi Fallen Order, Fifa 20 (Not Switch Version), Madden 20, Sea of solitude and COD MW 2019 are good games, have you played them??

Yeah, that may be... though you'd had to look long under all those microtransactions and monetisation schemes to find the damn game in the supposed game, and that's a no-go to me, no matter how good the game is. And these (plus Take Two, forgot to mention them) push those more and more and more.

Yep several games have put so much extra grind to force MTX that it becomes a bad product to anyone that values their money.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

Around the Network
PAOerfulone said:

Nintendo is doomed!

DOOOOOOOOOOOOOOOMED!

Sometimes I wish they were: I want their games on PC.



KLAMarine said:
PAOerfulone said:

Nintendo is doomed!

DOOOOOOOOOOOOOOOMED!

Sometimes I wish they were: I want their games on PC.

Nintendo would probably ask for bigger royalties on PC sales (if they release it on Steam or Epic Games Store for example) and to avoid dropping the prices of their games 2 days after launch. :P



Now maybe the investors can shut up for a while.



Farsala said:
The_Liquid_Laser said:

A console tends to be at its most profitable during its latter years when it has a large install base.  You can look at the chart below and see this with PS4.  (Most recent fiscal year is not listed, but it is about the same as 2019.)  Switch is younger than PS4 so it still has a couple of years until it reaches it's most profitable time.  So even though Nintendo > Sony in profits right now, that gap is going to keep widening.  Basically we ain't seen nothing yet when it comes to Nintendo's profit from the Switch.

The latter years are usually not that profitable. For the PS3 , you can see that from 2012 and 2013 the PS3 was hindered by PS4 R&D. Then in 2014 and on the PS3 wasn't all that profitable, to offset the PS4. Meanwhile the PS4 profits in 2019/ 2020 have been hindered by PS5 R&D and the latter years will look even worse.

The Wii U's latter years were straight losses to Nintendo due to them focusing on the Switch.

SIE's revenue is declining simply because hardware and software sales are falling.
Maybe the ps5 development cost is a small part of it.



My prediction in 2021.

SW: 30m

PS5 16m

XBS: 7.5m

Around the Network
Oneeee-Chan!!! said:
Farsala said:

The latter years are usually not that profitable. For the PS3 , you can see that from 2012 and 2013 the PS3 was hindered by PS4 R&D. Then in 2014 and on the PS3 wasn't all that profitable, to offset the PS4. Meanwhile the PS4 profits in 2019/ 2020 have been hindered by PS5 R&D and the latter years will look even worse.

The Wii U's latter years were straight losses to Nintendo due to them focusing on the Switch.

SIE's revenue is declining simply because hardware and software sales are falling.
Maybe the ps5 development cost is a small part of it.

Yep.

Less HW sold, more cuts on price on holiday, less first party sales not covered by the increased royalties in SW sold (possibly a lot more of indies than retail ones).



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

The_Liquid_Laser said:
Farsala said:

The latter years are usually not that profitable. For the PS3 , you can see that from 2012 and 2013 the PS3 was hindered by PS4 R&D. Then in 2014 and on the PS3 wasn't all that profitable, to offset the PS4. Meanwhile the PS4 profits in 2019/ 2020 have been hindered by PS5 R&D and the latter years will look even worse.

The Wii U's latter years were straight losses to Nintendo due to them focusing on the Switch.

Depends on if you are talking about a profitable console or an unprofitable one.  PS3 lost Sony a ton of money overall.  But even then the later years they lost less money compared to their early years.  Wii U is a similar story.  Nintendo lost a bit in the early years and made a bit after.

Now look at a highly successful console, like the PS4 or Switch, then the latter years are the most profitable.  A high install base translates into more software sold and more subscriptions.

By latter years, I took it to mean the final years. for example 2015,2016+ for PS3 and 2022,2023 + for PS4. While profitable, they don't make too much money. Console make a lot more money when they are at peak sales.



Farsala said:
The_Liquid_Laser said:

Depends on if you are talking about a profitable console or an unprofitable one.  PS3 lost Sony a ton of money overall.  But even then the later years they lost less money compared to their early years.  Wii U is a similar story.  Nintendo lost a bit in the early years and made a bit after.

Now look at a highly successful console, like the PS4 or Switch, then the latter years are the most profitable.  A high install base translates into more software sold and more subscriptions.

By latter years, I took it to mean the final years. for example 2015,2016+ for PS3 and 2022,2023 + for PS4. While profitable, they don't make too much money. Console make a lot more money when they are at peak sales.

By latter years, I mean the last couple of years before the next console launches.  FY2019 and FY2020 are PS4's most profitable years.  Switch's most profitable years will likely be somewhere in the FY2021-2023 range.  Nintendo's profits are going to grow even compared to the impressive number they just posted.

Last edited by The_Liquid_Laser - on 26 May 2020