aTokenYeti said:
Microsoft gaming makes more money year over year than the entire Nintendo corporation combined, and that’s before the ABK merger.
I don’t think Phil Spencer is taking crazy pills suggesting Nintendo is leaving money on the table. Basically every Nintendo first party can run on mobile phones, and the addressable market for iOS and android is billions of people. |
Generating revenue and making money are two very different things. Regarding Nintendo leaving money on the table, continue reading below.
chakkra said:
Okay, 1st) I agree that Microsoft buying Nintendo would be bad for the industry over all (we need more competition, not less) and I 100% DO NOT want that to happen. 2nd) Looking at the phrase "Nintendo future exists off their own hardware" on a vacuum, one has to wonder: How much would Zelda, Mario Kart 8 and Pókemon sell if they released on all of the other platforms? I mean, I think Pókemon alone might be able to rival GTA. Then again, I guess someone could argue that the tribalism that makes some fans rally around the brand might disappear and they would no longer have the same level of interest for those games, but still. |
Software sales would most likely not increase to an appreciable degree, unless one believes that tens of millions of gamers refuse to buy Nintendo hardware to play Nintendo games. In order to believe that, one has to give a lot of weight to the obnoxious voices on the internet who are all for Nintendo going third party. But here's a hint: Even among those who complain the most, most of them did buy Nintendo hardware already.
Phil Spencer's suggestion that Nintendo's future exists off their own hardware is so fundamentally wrong that it's not surprising that the Xbox business is in such a bad state. The guy doesn't understand how the different aspects of the console business are interlinked, so here comes the portion of my post that should be most interesting to aTokenYeti.
Nintendo makes money not only off their software, but also their hardware, their controllers, their own subscription service and by collecting royalty fees from third party games. Exclusive first party games unsurprisingly bolster this whole setup that generates high profit margins in all areas, hence why Nintendo is so profitable despite having significantly lower revenues than their competitors.
The statement that mobile gaming is an addressable market of billions of people is outright delusional. The mobile gaming market has proven time and time again that the vast majority of people is not willing to pay money for games, so the actual addressable market ranges merely in the millions and is therefore much smaller than the console market.
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Papa Phil has had enough time to fix Xbox after Mattrick was shown the door. His business moves haven't resulted in an appreciable improvement and that's horrible when you consider how low the bar had been set by the previous leadership. Also, his PR work is commonly embarrassing; I am talking about multiple examples of him gratulating Sony for successful launches. That's the kind of thing you would only say if Xbox's future existed off their own hardware.