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Topic: Is Nintendo resting on its laurels?

Posts 381 to 400 of 543

Agriculture

link3710 wrote:

@Agriculture What you're failing to take into account is the following:

  • Nintendo doesn't pay fees to any platform holder, so that's a higher return on investment for every copy sold.
  • BotW sold the system, thus provided additional income in the form of hardware sales (which Nintendo makes a profit on every Switch sold), additional hardware sales (how many of those people bought a pro controller or extra pair of joycons?), additional software sales (most people aren't going to buy a system for Xenoblade Chronicles 2, Doom or the vast majority of games coming out. But Nintendo gets profit on every game sold, whether they made it or not.)
  • You have no idea what the budget difference between the games is. Claiming that 7 million isn't enough to make a significant profit is unfounded without knowing it's budget. And again, the game may have made Nintendo more money based on selling systems, accessories and other games than it did with software sales.
  • The game is going to continue selling for the system's lifetime, and probably won't see a price cut until the last few years. That means that each unit sold is a higher profit margin than companies that put their games on sale for $30 or $20 dollars a year after launch.

Sorry but the raw number of copies sold doesn't tell you enough to determine how profitable a game is.

This is all correct, but that's not how investors see things. They think in terms of potential profits to actual profits, not as a stand alone number. A product can be profitable but at the same time leaving money on the table.

If Nintendo only have 14 % console market share, then investors will just see potential profits squandered. And Breath of the Wild isn't a loss leader for the Switch either, since the Switch doesn't have enough margins for that. Furthermore, there's a limit to how far you can take the loss leader concept, you can't sell a game as a loss leader to get people to buy a console as a loss leader to finally make the profit on game licenses. The game licenses would have to be astronomically high for that to work, and Switch already have a problem in that area due to the cost of the game cards. There's a limit on how much consumers are willing to pay for a game, and that price has to house everything from development costs, retail costs, and the cost of the physical media. This is especially relevant in today game market were Sony and Steam are doing huge sales not that long after the game was released.

Full price for a 1.5 year old game like Breath of the Wild isn't a viable business strategy anymore.

Agriculture

Agriculture

Yorumi wrote:

Agriculture wrote:

Yorumi wrote:

But I also don't think sony and microsoft necessarily set the standard.

How can you say that when Playstation and Xbox have 86 % of the market, and Nintendo only 14 %? Also, last quarter Sony sold way more PS4's than Nintendo sold Switches.

You're looking at one moment in time. It wasn't long ago that nintendo was the dominant console. Sony is largely only in the position it's in thanks to both nintendo and microsoft blowing it big time, and if you completely ignore the PC market. Steam is showing some pretty incredible numbers.

Beyond that there's degree to which you're arguing that popular is all that should be made.

I was talking about Sony and Microsoft together since their consoles are basically identical. Nintendo has 14 % and Sony + Microsoft have the rest of the market. What do they do with these 86 %? They make fully voice acted open world games with NPCs that interact with the world. The same is true for PC, so you could add the PC market share to that "team".

As for popularity, we are beyond the years were game consoles were niche things for a few enthusiasts, so you do need to do a lot to appeal to what is popular, otherwise you'll be out competed. In the current gen of consoles, there has been 141 million consoles sold, and only 20 million of those are Switch. When the next gen of consoles gets released, Nintendo could take more market share if they do more to appeal to what is popular.

Agriculture

Mountain_Man

ReaderRagfish wrote:

SwitchForce wrote:

ReaderRagfish wrote:

@SwitchForce Systems like 3DS and Gamecube did receive significant price drops after a little while, but yeah, there's little reason for Nintendo to drop the price on the Switch when it's still selling very well at the current price.

Actually those are out of production model the price drops reflects that. That is the only real timeline you will see a price drop cause that model is no longer in Production.

Wrong. The 3DS went from $249 to $169 in 2011. The Gamecube went from $199 to $99 in 2003. The Wii went from $250 to $200 in 2009.

In all of those cases, they were still in production and had yet to be replaced by a revised model.

The 3DS price was dropped because of soft sales. The Switch, on the other hand, is selling better than projected, so Nintendo has no incentive to reduce its price.

The Mountain Man

Mountain_Man

Agriculture wrote:

One idea that has been floating around is that when the next generation of consoles gets released, Nintendo should release a Pro version of Switch that is fully compatible with the original, but also has it's own Pro-games that won't work on the regular Switch. This is a good idea.

That's actually a terrible idea. Nintendo would be fools to divide their market like that. I think what consumers and developers need to keep in mind is that the Switch is its own system and not simply a portable alternative to the latest Playstation and Xbox.

The Mountain Man

Agriculture

Mountain_Man wrote:

Agriculture wrote:

One idea that has been floating around is that when the next generation of consoles gets released, Nintendo should release a Pro version of Switch that is fully compatible with the original, but also has it's own Pro-games that won't work on the regular Switch. This is a good idea.

That's actually a terrible idea. Nintendo would be fools to divide their market like that. I think what consumers and developers need to keep in mind is that the Switch is its own system and not simply a portable alternative to the latest Playstation and Xbox.

What I meant was that when the Playstation 5 and next Xbox is released, then Nintendo should release a "Switch 2" that is fully backwards compatible with Switch games. I'm not talking about dividing the current market, I'm talking about the next generation, which might come 2020.

Agriculture

Agriculture

Yorumi wrote:

@Agriculture When you include the PC in there you immediately have a contradictory argument. The standard on PC is free online, free cloud saves, free voice chat, the ability to play your games on any piece of hardware you own, cheaper prices and heavy competition. While there are some, the games that are popular on PC typically aren't you're huge budget busting AAA games. WoW is downright prehistoric, warframe, team fortress, fortnite, GW2, etc all run on toasters.

The standard on PC is very consumer friendly, the standard on consoles is very hostile to consumers. PCs right now in almost every way are the exact opposite of consoles in the direction of being better for the consumer. The consoles are in almost every way better for the corporation and worse for the consumer. Maybe Sony should consider implementing some of the PC standard?

The driving force behind buying a new gaming PC is to be able to get RAYCASTINGâ„¢. I myself think it's pretty silly, but that is what drives to common consumer to their purchases. It's the same in the home theater market, people buy new stuff for FORK-Resolution with ULTRA HDR, then they watch whatever tv series they were already watching on their new equipment.

If Nintendo offers little new in terms of new technology and even go back on industry standards (such as how full voice acting now is the norm in AAA games) then they'll have problems getting people to buy their stuff.

Agriculture

Agriculture

Yorumi wrote:

@Agriculture you need to provide a source for that. When you look at steam hardware surveys the vast majority have a fairly modest system. For example only about 6% of PC gamers have a GTX 1080 or 1070. Only 13% have a GTX 1060. That means the vast majority of PC gamers are below a GTX 1060. Not even 1% has a VR headset.

In other words, according to the leading PC gaming platform, most users have fairly modest systems.

I'm not talking about how many PCs exist in the hands of consumers. I'm talking about the rejuvenation of gaming PCs. Most consumers are probably playing less demanding PC games, but when they buy a new PC they want a "Crysis" for it. The same is true for Playstation. People got sold on the PS4 with technically advanced games, but then indie games became popular on the console. Nintendo won't be able to sell 50 million consoles the next generation unless they also have those type of technologically advanced games.

[Edited by Agriculture]

Agriculture

Agriculture

Yorumi wrote:

@Agriculture Again source. I provided data on the PCs users have. What they're buying and playing on. You've provided merely you're own blind speculation so far.

It's common sense that people don't upgrade their PCs to play indie games that would run on a potato. You're just stalling and hoping I'll run out of patience with you so you can "win" this discussion. People won't buy a Switch 2: Electric Bogaloo if it doesn't have games that meet AAA standard.

Agriculture

Trajan

@Yorumi I remember when my little brother out together a gaming PC with a GTX970 for Oculus. Graphics card cost more than a console.

Sakurai: Which is why I think we should forget about console wars and focus on what’s really important: enjoying the games themselves.

"If we did this (mobile games), Nintendo would cease to be Nintendo." - Iwata

Agriculture

Yorumi wrote:

@Agriculture no that's not a valid argument at all. If it's such common sense, post a source.

Oh my god, literally EVERY new console launch involves showing off new hardware and software tech as a selling point.

Agriculture

EvilLucario

@Yorumi Then you get popular AND unoptimized POS games like PUBG :^]

Ultimately though, getting second-hand parts and etc that still beat consoles still ends up with a better performance:cost than consoles overall.

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rallydefault

@Agriculture
Your PC thing is really off, man. Most PC gamers upgrade their rigs to get better performance out of existing games that they enjoy a lot, NOT usually to reach some kind of height being set by a graphics-heavy new game. A small portion upgrade rigs because they are streamers and want to stream with better settings; streaming setups are incredibly demanding.

But for your normal PC gamer, it's pretty shocking how PC gaming these days is less about specs than consoles. Most of us play very undemanding games like MOBAs, Hearthstone, WoW, etc. Just look at the top 10 games on Twitch at any given point. The most demanding games in the top 10 right now are Destiny 2 (new expansion just came out - that'll be gone in a day) and Battlefield V, both of which are very flexible with graphics settings for modest rigs. The other games are WoW, Fortnite, Dota, League, Hearthstone, GTAV, CounterStrike, and Overwatch. That's where a lot of the PC space is and has been for a few years now.

Stuff not on Twitch tends to be Steam trash and indies that can run on a Dell from 1998.

rallydefault

JasmineDragon

@Agriculture

Agriculture wrote:

Yorumi wrote:

@Agriculture you need to provide a source for that. When you look at steam hardware surveys the vast majority have a fairly modest system. For example only about 6% of PC gamers have a GTX 1080 or 1070. Only 13% have a GTX 1060. That means the vast majority of PC gamers are below a GTX 1060. Not even 1% has a VR headset.

In other words, according to the leading PC gaming platform, most users have fairly modest systems.

I'm not talking about how many PCs exist in the hands of consumers. I'm talking about the rejuvenation of gaming PCs. Most consumers are probably playing less demanding PC games, but when they buy a new PC they want a "Crysis" for it. The same is true for Playstation. People got sold on the PS4 with technically advanced games, but then indie games became popular on the console. Nintendo won't be able to sell 50 million consoles the next generation unless they also have those type of technologically advanced games.

It's absolutely not true that everybody buys gaming PCs with the intention of playing the latest beast of a game on them. One of the growth markets in computers is "budget gaming-capable PCs", the kind that can play some games but aren't going to run the latest and greatest on the highest settings.

That's exactly what I bought when I needed a new laptop a few years ago. I wanted something I could play things like Civilization and X-Com on and also use for work, and that's what I bought (a Lenovo Y40-80). It's the Switch of gaming laptops, with just enough power to do some good gaming on but definitely not the most powerful rig on the block. Suits my needs just fine.

My coworker was recently in the same boat, her main criterion was that it can play WoW. I don't remember what she ended up buying but it sure wasn't the biggest and baddest. She's a fairly hardcore gamer with many hundreds of hours in WoW and a lot of time in indie games like Stardew Valley, practically zero interest in power-sucking games like GoW or Destiny. Not everybody fits that mold that you seem so sure about.

This is why things like the Y40-80 and the Switch sell. AAA game publishers and hardware manufacturers would love you to believe that everybody wants the high-end, hardcore experience, but the reality is a lot of people enjoy games that are not nearly as demanding.

Switch FC: SW-5152-0041-1364
Remind yourself that overconfidence is a slow and insidious killer.

Therad

Trajan wrote:

@Yorumi I remember when my little brother out together a gaming PC with a GTX970 for Oculus. Graphics card cost more than a console.

That is like comparing apples and oranges. I really dislike those kinds of comparisons. I have seen countless of times when people compares graphics cards that have 2x-3x times the performance of a console. Of course it is more expensive.

Agriculture wrote:

The driving force behind buying a new gaming PC is to be able to get RAYCASTINGâ„¢. I myself think it's pretty silly, but that is what drives to common consumer to their purchases. It's the same in the home theater market, people buy new stuff for FORK-Resolution with ULTRA HDR, then they watch whatever tv series they were already watching on their new equipment.

If Nintendo offers little new in terms of new technology and even go back on industry standards (such as how full voice acting now is the norm in AAA games) then they'll have problems getting people to buy their stuff.

First, it is called ray tracing and it is a technical term so no need for TM.

Second, unless you are an early adopter, no one will buy those cards. Sure, they will become the new standard, and they will be in most games in the end but that will take a couple of years. At this time they are overpriced for what you get since you only get a modest increase in most games.

Btw, I am more interested in the new tensor cores, those can hopefully be used for some nifty things in the future. While ray tracing can make some parts of rendering more realistic, a real AI network can make the games feel more realistic.

[Edited by Therad]

Therad

erv

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FaeKnight

rallydefault wrote:

@Agriculture
Your PC thing is really off, man. Most PC gamers upgrade their rigs to get better performance out of existing games that they enjoy a lot, NOT usually to reach some kind of height being set by a graphics-heavy new game. A small portion upgrade rigs because they are streamers and want to stream with better settings; streaming setups are incredibly demanding.

But for your normal PC gamer, it's pretty shocking how PC gaming these days is less about specs than consoles. Most of us play very undemanding games like MOBAs, Hearthstone, WoW, etc. Just look at the top 10 games on Twitch at any given point. The most demanding games in the top 10 right now are Destiny 2 (new expansion just came out - that'll be gone in a day) and Battlefield V, both of which are very flexible with graphics settings for modest rigs. The other games are WoW, Fortnite, Dota, League, Hearthstone, GTAV, CounterStrike, and Overwatch. That's where a lot of the PC space is and has been for a few years now.

Then there's older games like The Sims 3 which are still pretty demanding. TS4 is less demanding then TS3 is. I was able to run TS4 easily with my tower's integrated graphics chip. But for TS3 I ended up needing to get a decent graphics card. Not a top tier one, but a good solid mid tier one.
Stuff not on Twitch tends to be Steam trash and indies that can run on a Dell from 1998.

[Edited by FaeKnight]

FaeKnight

Switch Friend Code: SW-6813-5901-0801 | X:

Agriculture

Breath of the Wild is a great game, but as many people pointed out, it felt empty, especially in the towns were NPCs just stand there not interacting with anythings (the closest thing you'll get is a character walking towards where they're supposed to be). Nintendo is definitely resting on it's laurels if they think that will fly when all their completion have living worlds were characters are voice acted, interacts with the game world and have good facial animations.

Agriculture

nonprophetmusic

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The answer might surprise you.

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JasmineDragon

Agriculture wrote:

Nintendo is definitely resting on it's laurels if they think that will fly when all their completion have living worlds were characters are voice acted, interacts with the game world and have good facial animations.

But it did fly. In addition to its universal acclaim, the game has sold over 10 million copies. It's the highest selling Zelda game of all time. It's hard to say "this won't fly" when the game is selling two thousand copies a day.

Switch FC: SW-5152-0041-1364
Remind yourself that overconfidence is a slow and insidious killer.

EvilLucario

@JasmineDragon And it also won Game of the Year AGAINST ****ing Horizon Zero Dawn, the personification of that "big interactive open-world game". Horizon Zero Dawn, as great of a game I'm sure it is, won absolutely no awards from The Game Awards. Nothing. As pointless and dumb these game awards are, the vast majority of games that won awards were Nintendo games, other Japanese games like Persona 5, and indies like Cuphead, all using "inferior technology".

Graphics are important but none of that matters much compared to the actual game itself, which Japanese/indie games REALLY succeed at.

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