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Nintendo Won't Pull A Sega
AztecL0B0 writes "Nintendo Insider takes a look at the reasons why Nintendo is not leaving the console race anytime soon. From the article: 'To have a successful system, you must not only sell a lot of the system, but make money off it, too. You can sell all the systems you want, but if you don't turn a profit, you'll go down the drain as a company.' This is the second part of a three part series. The first article discusses the background to this round of console fighting."
> Though Nintendo hasn't done very well compared to the PS2
The whole point of TFA is that Nintendo HAS done well, better than SONY and Microsoft combined when your measurement is profit. Nintendo has made ONE BILLION dollars in profit in the past year, Sony has made 400 MILLION dollars in profit, and Microsoft has LOST 550 MILLION dollars.
If you measure by market share or third party support or sales volume or even income then Nintendo doesn't win, but if you measure who is making (and keeping) the most money, Nintendo wins hands down.
- For the complete works of Shakespeare: cat
Nintendo makes a billion dollars of profit compared to Sony's 400 million, and that's a 'bullshit statistic'?
"... but with the threat of the entrance of Sony into handheld, and perhaps cel-phone type gaming platforms, Nintendo is in serious trouble."
You mean like Nintendo was in trouble SNK, Nec, Tiger, Sega (twice), and a bunch of no-name companies entered the market?
This has been pointed out before, but I figure it's worth reminding you again: You're coming from an ignorant point of view.
a.) Nintendo doesn't make money from selling consoles. (Just like Sony and Microsoft don't.) They make it from games, just like Sony and Microsoft do. The big difference is that Nintendo is a FIRST PARTY game developer. In other words, when they release a million+ seller, they reap a shitload of money over it. BTW, they do this quite regularly.
b.) Nintendo didn't 'cheat' by having high portable sales. They're not 'afloat' with portable sales because it's an untapped market. They're making ridiculous profits over it because they're the only company who has demonstrated that they know what they're doing in this market. They've made lightning strike TWICE here. (Original Game Boy, and GBA.) Sega's tried twice and failed. SNK enjoyed a little success, but couldn't keep up. Atari, NEC, and Sega released really powerful portable systems, but that wasn't enough to give them any real market share.
In other words, there's no guarantees that Sony will disrupt Nintendo in the portable market. They may actually manage to get some market share out of it, but there's still the problem that Nintendo is a damn good game developer.
You can cry bullshit all you want, but you really should be mindful that you're narrowing your view way too much to make Nintendo look bad and Sony look good.
"Derp de derp."