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Forums - Nintendo Discussion - In hindsight, was it always smart for Nintendo to never prioritize or pursue 3rd party support?

 

Was it always smart for Nintendo to never prioritize or pursue 3rd party support?

Yes, it was smart all along 34 72.34%
 
No, if Nintendo pursued 3... 13 27.66%
 
Total:47
Hardstuck-Platinum said:

Wow. The problem is that on this website almost everyone thinks Nintendo is the market leader, so they believe everything they've done has been the right move. In terms of revenue they're third and bottom, so no de-prioritising third party was not the right thing to do. Also, I know people are going to come and say "but the profit margins". Profit margins alone do not determine whether someone is market leader or not because, profit margins are affected by so many factors. 

The Switch has sold 146 and a fair bit million units. 

The PS4 sold just shy of 119 and the PS5 is at 65.5ish million. 

The Switch has sold more, so shouldn't that make it the market leader? Hell even in slower points its still doing far better than an eight year old system should be doing.



The Democratic Nintendo fan....is that a paradox? I'm fond of one of the more conservative companies in the industry, but I vote Liberally and view myself that way 90% of the time?

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No. Tho its definitely not something essential that they need to do, its still money they are leaving on the table.



KrspaceT said:
Hardstuck-Platinum said:

Wow. The problem is that on this website almost everyone thinks Nintendo is the market leader, so they believe everything they've done has been the right move. In terms of revenue they're third and bottom, so no de-prioritising third party was not the right thing to do. Also, I know people are going to come and say "but the profit margins". Profit margins alone do not determine whether someone is market leader or not because, profit margins are affected by so many factors. 

The Switch has sold 146 and a fair bit million units. 

The PS4 sold just shy of 119 and the PS5 is at 65.5ish million. 

The Switch has sold more, so shouldn't that make it the market leader? Hell even in slower points its still doing far better than an eight year old system should be doing.

I'm not trying to take away from it's success, but officially speaking in business market leader is determined by revenue. Playstation has 30B. Xbox about 25B and Nintendo about 15B revenue. In revenue Sony is market leader



I gotta disagree. The SNES was the last console that had parity in both specs and third party support... and most people consider it their best. Because who wouldn't want a new Nintendo console with Sony-level third party support AND PS5-level specs? It would literally be the console to end all consoles. It would be a dream machine; the realization of what the N64 was SUPPOSE to be, all those years ago.



Let's see how Switch 2 does. I say that because Nintendo handhelds have always been successful, compared to the rockier road of home consoles.
N64, GameCube, and Wii U were all hurt by the third-party approach each system had.
Switch is Nintendo's most successful platform to date and has gotten some third-party games we'd never expect while lacking others.



Lifetime Sales Predictions 

Switch: 161 million (was 73 million, then 96 million, then 113 million, then 125 million, then 144 million, then 151 million, then 156 million)

PS5: 115 million (was 105 million) Xbox Series S/X: 40 million (was 60 million, then 67 million, then 57 million. then 48 million)

PS4: 120 mil (was 100 then 130 million, then 122 million) Xbox One: 51 mil (was 50 then 55 mil)

3DS: 75.5 mil (was 73, then 77 million)

"Let go your earthly tether, enter the void, empty and become wind." - Guru Laghima

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Microsoft did everything they could to court major third party publishers and look how XBox turned out. 

The truth is that every successful Nintendo console has had lots of third party support.  Over 90% of Switch games are made by third party developers.  However, we also know that its the major Nintendo titles that are the biggest sellers.  A console needs both.  It needs major high quality games and it also needs a large quantity of games.  Nintendo produces the heavy hitters themselves, but if you take away all of the little games, then the console doesn't do too well.  The N64, Gamecube and Wii U didn't have a large library of games, and they didn't sell a lot of hardware.  Every other Nintendo system had lots of third party games, and they were successful.  

Those third party games matter, but it doesn't have to be from Take Two, EA, etc....  Small to medium budget third party games is all that a Nintendo system needs.  Nintendo makes the heavy hitting games on their system.



Hardstuck-Platinum said:
KrspaceT said:

The Switch has sold 146 and a fair bit million units. 

The PS4 sold just shy of 119 and the PS5 is at 65.5ish million. 

The Switch has sold more, so shouldn't that make it the market leader? Hell even in slower points its still doing far better than an eight year old system should be doing.

I'm not trying to take away from it's success, but officially speaking in business market leader is determined by revenue. Playstation has 30B. Xbox about 25B and Nintendo about 15B revenue. In revenue Sony is market leader

2nd Edit I missed your last sentence and it is correct.  It ignores that they are not the market leader in market share or profitability so I still call cherry picking since market leader is typically comprised of a number of criteria not just revenue.  At best your statement lies in a gray area.  Sony is more consistent than Nintendo but they play second fiddle being an innovator in the industry. The Big three all have brand strength.

You are looking at the wrong metric.  Profit is king not revenue.  In an established business you could generate 100 times the revenue of a competitor that is turning a profit, but if you are taking a consistent loss the shareholders will not be pleased and your business will fold while your competitors stock outperforms yours.

Edited to add this:

Profit is often considered more important than revenue when assessing a company's financial health and overall success, but both are important:

Revenue
Shows how well a company's products or services are performing in the market, and indicates demand. Revenue can help gauge a business's growth.
Profit
Reflects how well a company manages resources. Profit is often considered a more important metric than revenue because it shows how well a business manages its expenses.

I cannot swear as to the validity of this data so take it with a grain of salt (it is also out of date). That said, if flawed, it still does not invalidate that you are cherry picking the wrong metric.

according to the poster this accounts for: Hardware + Software + Online/MTX/DLC

 

Last edited by The_Yoda - on 09 January 2025

The_Yoda said:
Hardstuck-Platinum said:

I'm not trying to take away from it's success, but officially speaking in business market leader is determined by revenue. Playstation has 30B. Xbox about 25B and Nintendo about 15B revenue. In revenue Sony is market leader

You are looking at the wrong metric.  Profit is king not revenue.  In an established business you could generate 100 times the revenue of a competitor that is turning a profit, but if you are taking a consistent loss the shareholders will not be pleased and your business will fold while your competitors stock outperforms yours.

Edited to add this:

Profit is often considered more important than revenue when assessing a company's financial health and overall success, but both are important:

Revenue
Shows how well a company's products or services are performing in the market, and indicates demand. Revenue can help gauge a business's growth.
Profit
Reflects how well a company manages resources. Profit is often considered a more important metric than revenue because it shows how well a business manages its expenses.

I cannot swear as to the validity of this data so take it with a grain of salt (it is also out of date). That said, if flawed, it still does not invalidate that you are cherry picking the wrong metric.

according to the poster this accounts for: Hardware + Software + Online/MTX/DLC

 

As I said in my first post here, profit margins can be affected by many things. Research and development costs for example. I'm not saying that profits aren't important, but revenue is what makes profit possible in the first place. You have to remember that the PS4 is still generating a lot of revenue/profit for Sony in conjunction with the PS5. You can't look at it solely as a console vs console basis 



If it is about profit than Steam(deck,console) is the highest one:

Valve’s revenue per employee is estimated to be around $19 million, potentially making it one of the highest revenue per employee companies globally. And they have less than 400 employees...






Pemalite said:
OdinHades said:

I would, because I don't care one bit about grfxx and prefer portability.

Buy a Steamdeck or an Ally ROG or a Legion Go if you want GTA6 portable.

Rockstar has never been a big supporter of Nintendo.

I already have a Legion Go and a Steam Deck. But I very much doubt GTA 6 will come to PC any time soon. Which is why I also have a PS5 standing here and collecting dust. I keep it just to play GTA 6. =D

Anyway, I was just talking about GTA 6 coming to Switch 2 hypothetically. If that was the case, it would be the version I preferred. But I also very much doubt it will happen.



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