Everything happens for good
- Thread starter Muddasar
- Start date
Nintendo makes nearly half the revenue of PlayStation
You think spurning most the publisher and developer community for a couple decades and occasionally ending up with a WiiU or GameCube when the nostalgia cycle isn't in your favour is a solid business model to follow?
Nintendo are self sufficient until they have another hardware launch that doesn't appeal to the masses
The 3rd party support will not go away if Sony keeps supporting newly founded developers. Sure these devs are not well known, nothing compared to the established studios from the big publishers, haven’t made any notable games or IPs yet but that was the case for all of the games published by publishers in the past too. For these games to be successful, marketing is important, and what does Sony have? Playstation, the most well-known gaming brand in the world alongside Nintendo, Sony can definitely use their brand’s strong presence to market these games by these new studios. It is necessary that Sony has a brilliant scouting team in order to fund the right projects and get the sweet results.
Nintendo home console may be hit or miss but their handhelds have always been successful.
So Sony should have to keep busting their ass making new fantastic franchises and when Microsoft could just buy keep buying publishers? How is any of this fair?
This is just nonsense, you just listed a bunch of things that did poorly and attack them for not continuing things that did poorly...
There's so much garbage in this comment I dont even know where to begin
Just a hard to kill weed that threatens to spread and takeover the whole lawn.
If you care for your lawn, you know when weeds start to pop out it's all out war or else.
If you care for your lawn, you know when weeds start to pop out it's all out war or else.
Because Sony does not have money. There is no such thing as fair, not when you’re dealing with a corporation the size of Microsoft. This is a do or die situation for Sony, they can not whine about it too because it will them seem pathetic in the eyes of players, especially when Sony has been about exclusives for more than 2 decades.
Nintendo also made more profits than Sony PlayStation and Xbox.
Last 5 years Nintendo made 22.41 billion usd profits while Sony PlayStation made 13.15 billion usd.
Here's my thing: you're just focusing on console sales and 3P software sales. I'm talking about actual 1P software sales, and the profits off of that.
In that regard, yes IMO Nintendo's audience is more loyal. Look at the numbers their games were doing on even the Gamecube; many doing 5+ million, some even 10 million or more, on an install base barely over 20 million. Every single one of those games profitable, and on the lower side of production costs for AAA titles of that era. The average Nintendo 1P game saw comparable or even more sales on the Wii U, which performed worst than the GameCube in units sold!
Meanwhile, the average Sony 1P game during the PS2 gen was doing maybe 2 million, some maybe 5 million...I think only the GT games pushed 10 million or more, and that's with a significantly larger install base than GameCube. We've only seen more of Sony's 1P pushing 10+ million the previous generation, and again on a platform with way more 3P support and unit sales than the Wii U. And, I'd argue Nintendo had several games on Wii U alone which were more profitable for them than similar games Sony had on PS4 selling comparable numbers.
By some measure, you would think a company pulling in less than 50% of PlayStation's gaming revenue would have 50% of PlayStation's profits, which is likely the case for, say, Xbox. But not with Nintendo; 50% less revenue, > 100% more profits than PlayStation. That's off the strength of Nintendo's 1P, and their customer base for those 1P. Also to a large extent their hardware being profitable from Day 1, too, and their gaming budgets being a lot less than say Sony's AAA megahits.
A part of Sony being self-sufficient means increasing the gaming profits, not just revenue. Ideally I think they'd probably like to see at least $2.5 billion - $3 billion in gaming profits become the norm for them. That means either (1) more people buying their games Day 1 (preferably digitally), (2) more people buying MTX & DLC content off their 1P games (which will naturally mean more live-service/GaaS titles from them), (3) more people buying MTX & DLC content off 3P games on their platform, or (4) Sony acquiring 3P publishers with good profit streams. Or a combination of all four things.
Ideally we as fans should want the first one, as that'd mean more traditional gaming content, but it also means they will likely need to reconsider the PC porting strategy because they'd also want more of #3, which is hard to do if you give people less a reason to buy your console AND direct competitors give them less reasons by purchasing 3P publishers and potentially foreclosing on that content on your platform. #2 would be a close second desire but as long as enough of that is for traditional content, then we wouldn't need to worry about lopsided funding towards live-service/GaaS 1P content to compensate.
At this point it's not just about revenue and console units sold, it's about net profits. And Nintendo is curbstomping both Sony and especially Microsoft in gaming when it comes to the profits.
Why do you think Microsoft want to acquire ABK so badly? Because in addition to the revenue boosts, they're getting a decent boost in profits as well gaming-side. Sony's need to be more self-sufficient is obviously tied to increasing their gaming profits, because for the revenue they bring in, the profits look low compared to Nintendo's, who bring in significantly less revenue.
The debate at this point is what means Sony should best take to increase those profits. Needless to say, I feel them pushing for an ever-more-aggressive PC porting strategy, lopsided focus on GaaS 1P funding, and thinking a suitable answer for the portable market is a cloud gaming device...are all the wrong direction for Sony to prioritize for those gaming profit gains.
Sony has plenty of money and can afford several of the existing publishers but my point is putting the pressure on Sony to create when MS can just buy whatever the fuck is bullshit.
Everyone has been about exclusives including Microsoft just as much as anyone. They just suck at managing studios, shouldn't be a reason to allow them to buy a massive publisher so they have more than a dozen than Sony
Yes everything in my comment did poorly but your nonsensical rebuttal that actually said a whole lotta nothing... Is the correct answer.... I just don't even know where to begin.
But they are allowed, right? Us saying no to the deal does not mean anything so this “fair or unfair” talk for me feels redundant. And most importantly, the deal is closed, it is over, so it is best to move on. The future is bleak if Sony does not act right away so it is both worrying and exciting when looking forward to Playstation’s news in the second half of the year.
The last paragraph feels like a gut punch. Hope that is not their strategy.
During the PS4 gen, Sony consistently had significantly more profit than Nintendo, it's just that they're currently taking huge losses just from the switch to a new generation and new hardware. Especially when they're wasting billions on awful acquisitions.
Switch 1p sells well because it has the benefit of extremely limited competition, there's almost nothing worth playing on it besides the exclusives. And not all of their games do TOTK, Mario, or Pokemon numbers. Bayonetta, Fire Emblem, Kirby, Pikmin, Metroid, etc all rarely sell more than 3m.
Sadly it's clear Jim and Hermen have no faith in their first party though and that's why they'll never catch up to Nintendo, not because PS isn't on the same level in terms of IP or fanbase.
Sony had R&D and a new platform launch with lower margins in the last five years, and Nintendo hasnt
OP
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Nintendo also makes double the profit.
We are talking strictly Software here.
Nintendo is self sufficient in terms of revenue and profit.
Sony is not.