Soldato
It would also be interesting to know what's more of a success a console where they sell more and make a profit or a console where they only break even on costs half way through it's life but make loads on royaltys.
Didn't Nintendo lose billions last financial quarter?
Say a year after the ps4, 720 is out can you see many of that demographic using that console as their primary?
I don't believe they lost money, they still made a profit, it's just a case they didn't do as well with the 3DS as they'd expected and they profit predictions were lowered.
By your logic the 3DS would have been a run away success as well based on the sales on the DS.
How many family's do you know where the wii is just gathering dust?
The WiiU probably won't be as successfuly as the Wii, but then it probably doesn't NEED to be. Nintendo made a massive amount of money from this generation; and it'll likely hold them through any tight times quite easily.
The 3DS 1st year sales are track to be better than the DS sales.
http://www.joystiq.com/2011/11/11/nintendo-3ds-likely-to-outperform-dss-first-year-sales-in-us/
On to your next point, this gen has killed so many dev's due to high development costs, if by your logic the next gen leap will be big, its going to kill all but the biggest dev's/pubs, at what point do consoles become too powerful to devlop for.
Will the next round of consoles be more power yes, but its not going to be as big as say ps2 to ps3.
Great post.
Sorry for not making a long reply to it but I agree with most of it (bar the N64/GC doing badly, they made very big profits).
But those sales only came about because of a massive price cut which, iirc, is costing Nintendo money for every unit sold much like it has for Sony and Microsoft for years. Despite selling more units than the DS in its first year it's also going to cost them a small fortune compared to making a profit on the DS even with weaker sales.
This is not normal for Nintendo at all and it's a business model that they and their shareholders are not particularly happy with because traditionally they make money on hardware AND software.
It'll still continue to sell because they'll continue to pump out the same killer franchises and people will continue to buy them. But make no mistake about it, they are not happy that to beat the DS they are having to sell at a loss.
So I guess what I'm trying to say it isn’t doing as bad as some people want it to be.
On a totally separate hardware front question, when has the most powerful hardware ever been the top selling console of its gen?
IGN.com said:Nintendo Confirms Nintendo Network
Wii U to get individual online accounts.
US, January 27, 2012
by Richard George
Nintendo has finally confirmed its plans for the Nintendo Network, a formal, branded service for the Nintendo 3DS and Wii U. Outlining the concept in brief during an investor's program, company president Satoru Iwata confirmed the online infrastructure is already in place for the service.
Iwata quickly drew a contrast with his company's previous Nintendo Wi-Fi Connection program:
"Unlike Nintendo Wi-Fi Connection, which has been focused upon specific functionalities and concepts, we are aiming to establish a platform where various services available through the network for our consumers shall be connected via Nintendo Network service so that the company can make comprehensive proposals to consumers."
The publisher's plans are as follows:
Personal Accounts for Wii U - Nintendo will now allow personalized accounts for its next home console, which will allow multiple users per system. Online profiles will no longer be system-based. "We will also be able to construct and offer the [personal account system] by combining a variety of different services and content," Iwata said.
Digitally Distributed Packaged Software -Nintendo is exploring the idea of selling full retail games through the Nintendo 3DS and Wii U. The company is not willing to say when this program will start, but it now has the full ability to do so. Iwata noted Nintendo would need to consider retailer relationships first. He also noted SD card space limitations would be another factor. "The significance of this business field will increase," said Iwata.
Paid Downloadable Content - As we've heard previously, publishers will now be able to offer paid DLC for different games, starting with Square's Theatrhythm Final Fantasy, which will allow players to purchase new songs for the rhythm-based game. The title releases in Japan on February 16.
"As a software maker, Nintendo believes that its packaged software should be sold to our consumers in a form so that the consumers will know in advance that they can enjoy playing the software they purchased just as it is," Iwata said. "We believe that our consumers will be able to feel more secure if we offer our add-on content as an additional structure in which those who love the game will be able to enjoy it in a deeper way for a prolonged play time."
Iwata wrapped the Nintendo Network segment of his investor presentation with the following statement: "Whether it's our first-party titles or third parties' titles, for a number of games, we will actively attempt to achieve compatibility so that our consumers can enjoy our online services that we will deploy under the name of the Nintendo Network."