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Nintendo's problem is every other console after N64 is a dud.

Agreed, but that also reflects this industry broadly. Microsoft Xbox - loss, Xbox 360 - win, Xbox One - loss. Sony PlayStation - Win, PS2 - Win, PS3 - Loss, PS4 - Win.
 
Nintendo instead has to pay itself in order to subsidize the hardware they're selling at a loss. 30% is what all of the console makers charge. No free lunch.
Nintendo Switch does not sell at a loss.

 
Agreed, but that also reflects this industry broadly. Microsoft Xbox - loss, Xbox 360 - win, Xbox One - loss. Sony PlayStation - Win, PS2 - Win, PS3 - Loss, PS4 - Win.

You have a point, but the PS3 ended up catching the 360 in terms of sales so I'm not sure you can call it a loss. Definitely a slow start with that high price point though. Every PlayStation console is in the top 5 sales of all time. The Wii is the only other.
 
You have a point, but the PS3 ended up catching the 360 in terms of sales so I'm not sure you can call it a loss. Definitely a slow start with that high price point though. Every PlayStation console is in the top 5 sales of all time.
PS3 was definitely a loss. It was not even close to being as profitable as the PS2 due to high R&D costs, high console price, and the unit still sold at a significant loss.

PS2 was supposed to give the PS3 a huge audience boost but it barely beat out the 360.
 
Nintendo Switch does not sell at a loss.


They are selling at a loss. At an estimated $257 in parts each at $300 MSRP, that leaves nothing for retailer markup, non-recurring software and hardware engineering, overhead and profit.

The CEO is probably twisting words by saying there's no cash loss for each unit, which is probably true, but the engineering costs in tech products are huge.

 
Nintendo's problem is every other console after N64 is a dud.

N64 - Win
Gamecube - Loss
Wii - Win
Wii U - Loss
Switch - Win

We'll see what happens next. Logic would indicate that you just beef up the Switch for next-gen, but Nintendo always seems to try something new and waste a generation when it flops.

Nintendo is one of my all time favorite companies, but they have an incredibly stubborn and insular culture. In the current moment, they are riding high on Switch's runaway success, so I'm happy for that. Hopefully they have an eye to the future so we can can all avoid another WiiU type of situation...
 
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PS3 was definitely a loss. It was not even close to being as profitable as the PS2 due to high R&D costs, high console price, and the unit still sold at a significant loss.

PS2 was supposed to give the PS3 a huge audience boost but it barely beat out the 360.

The PS4 wasn't as profitable as the PS2. The PS2 will likely never be dethroned.

Whether you sell 3 million more consoles, or 100 million more, you still won.
 
I love Dr. Mario World but it's always been slow - connection wise, especially in Versus mode. Hopefully Nintendo can now focus on these connection issues with this particular game.
 
They are selling at a loss. At an estimated $257 in parts each at $300 MSRP, that leaves nothing for retailer markup, non-recurring software and hardware engineering, overhead and profit.

The CEO is probably twisting words by saying there's no cash loss for each unit, which is probably true, but the engineering costs in tech products are huge.


I think what you wrote was likely true when the system first debuted more than 3 years ago, but of course they have dramatically scaled production since then.
 
They are selling at a loss. At an estimated $257 in parts each at $300 MSRP, that leaves nothing for retailer markup, non-recurring software and hardware engineering, overhead and profit.

The CEO is probably twisting words by saying there's no cash loss for each unit, which is probably true, but the engineering costs in tech products are huge.


Sold at a profit. Straight from Nintendo's mouth. They can't lie because they're a public company. They'd get sued by shareholders if they lied about it.

 
We have some smart cookies here as to why Nintendo is folding tent and going home on mobile.

I could not believe Mario Kart’s business model when Apple Arcade was right there at the same price point.
 
They released "lite" versions of games that people wanted as full fledge.

For example, Super Mario Run when people wanted a full Super Mario. Pokemon Go (in collab with Niantic) when people wanted a full Pokemon (Red/Blue/Yellow) game. Too much focus on microtransactions, but that's just how the world works these days.
 
Sold at a profit. Straight from Nintendo's mouth.

Scroll up. We went over this.

They can't lie because they're a public company. They'd get sued by shareholders if they lied about it.

Nobody discloses the margins, or lack thereof, on hardware, though Nintendo says they are vastly different from software. This is a case of tricky accounting at work.

Also Nintendo is a Japanese company and Japanese public disclosure rules are different from American regulations. Japan does not have class-action lawsuits, like you are thinking, so you can't get sued by a bunch of shareholders.
 
Nintendo's problem is every other console after N64 is a dud.

N64 - Win
Gamecube - Loss
Wii - Win
Wii U - Loss
Switch - Win

We'll see what happens next. Logic would indicate that you just beef up the Switch for next-gen, but Nintendo always seems to try something new and waste a generation when it flops.

the wii U was financially a loss mostly because the messed-up advertising (and ofcourse the bad CPU) However, it's much better than many think. For example, it runs Zelda: BotW just fine. Now, show me an iOS game as extensive as that title...
 
Scroll up. We went over this.



Nobody discloses the margins, or lack thereof, on hardware, though Nintendo says they are vastly different from software. This is a case of tricky accounting at work.

Also Nintendo is a Japanese company and Japanese public disclosure rules are different from American regulations. Japan does not have class-action lawsuits, like you are thinking, so you can't get sued by a bunch of shareholders.
So you choose to believe a speculative article over source from Nintendo?

And we know Nintendo never or almost never sells hardware at a loss?

Ok. Just keep trying to prove something that you're trying to convince yourself.
 
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So you choose to believe a speculative article over source from Nintendo?

And we know Nintendo never or almost never sells hardware at a loss?

Ok. Just keep trying to prove something that you're trying to convince yourself.

This is how the industry works. Nintendo would be bankrupt if they didn't collect licensing fees. Period.

Sorry you didn't know how the console industry works, since the days of Atari.
 
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massive money grabs all mobile apps, and Mario requires an internet connection so could not play via flying = deleted with 5 minutes.
 
i like mario run and mario kart. It feels like they gave up on run. They haven’t added any actual content in years. Mario kart feels like they care about it with constant updates. I really appreciate the transparency they have with their “regarding known issues” section.
 
You have a point, but the PS3 ended up catching the 360 in terms of sales so I'm not sure you can call it a loss. Definitely a slow start with that high price point though. Every PlayStation console is in the top 5 sales of all time. The Wii is the only other.
True, but part of the reason many of those PS consoles are in the top five sales of all time is because they were multimedia machines with a CD/DVD or Blu-ray drive. Many PS2 consoles were just given away with Sony TV's for this purpose, and many were also bought for these reasons. Nintendo's consoles have always focused on gaming, and so all their sales count for that.

Also, if you count Nintendo's handheld systems then they actually have half of the top six selling consoles of all time (Nintendo DS and Game Boy included). Only PS2 beats Nintendo DS and I think many more PS2's were bought or obtained as DVD players than DS consoles were used as e-readers or museum guides.
 
I don't think they realize how much money they're leaving on the table by not releasing an updated Switch with higher resolution OLED display, faster GPU, and more compact form factor. I'd pay a lot for that. None of that plastic crap either. Make the body metal and the display glass. They can keep the joy cons attached also like the Switch Lite to help it keep a more compact size. There is definitely room to shrink it up some around the display and decrease the depth. Mobile chips can run for hours with better graphics at half the overall device size. Unlike the Switch Lite, allow it to be docked. I already own the Pro Controller. Honestly they could also release a more expensive controller similar to the one on Xbox because I would buy that too. With nothing else going on right now, a lot of my budget is going towards improving my home and gaming.
 
It's been a mixed bag for them, and I'm not really surprised.

Miitomo was good, but they deleted it. :(

Super Mario Run was good but ended up repetitive.

Animal Crossing was a winner for me, and got me into that series, but again Pocket Camp is repetitive.

Haven't tried the others.
 
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