The Nintendo way: cheap production, profitable games |
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In an article in the New York Times, we get an inkling of what it means to be Nintendo. Speaking simply, they believe the cheaper cost of Wii game production and the virtual console will definitely help make the Wii a very profitable enterprise in the next generation of consoles.
How so? Well, the NYT first explains the difference between Nintendo's marketing strategy and that of Microsoft's and Sony's. While the PS3 and 360 lose money with each console sold, they recoup their losses through selling games. Nintendo, however, makes their consoles cheap, with a profit of around 50 bucks for each sale. Augmented by their games, the selling price definitely seems to infer immense profitability for the console, even if they don't sell as many as the Xbox 360 or the PlayStation 3.
Satoru Iwata, President of Nintendo, also added one important selling point of the Wii: the virtual console. As a first-party developer, they already have a ton of games that would be up for grabs, but with the support of other developers such as Konami, Sega, and Square Enix, their arsenal becomes even more powerful. Powerful enough for Iwata to make the closing statement, "In the long run, I think the virtual console could become one of the most significant revenue streams for Nintendo."
Oddly enough, it seems fitting that we end this piece in the same way.
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Comments [refresh]
More like Nintendo: Crap games, unprofitable company.
Take a look on yahoo financial, see if Nintendo is unprofitable. Is that your foot in your mouth? yeah thats what I thought. Sorry but for the most part the masses like Nintendo's old stuff and most of Nintendo's first party new stuff. Just because you don't doesn't make Nintendo unprofitable. It just makes you look stupid, which I feel is appropriate.
Nintendo ds is curently the best selling gaming console in the world right now. Dont give me that nintendo sucks shiit. How about your face sucks!
omfg are you retarded, nintendos profits have increased wat? 150% latly? and what about sony? there profits are down 90% or something...
Nintendo, however, makes their consoles cheap, with a profit of around 50 bucks for each sale. Augmented by their games, the selling price definitely seems to infer immense profitability for the console, even if they don't sell as many as the Xbox 360 or the Wii. 360 and wii? wtf? u mean ps3?
Sounds like a killer idea to me
Whether of not you like Nintendo is a personal choice and obviously you don't, which is fine. But to claim they're unprofitable shows how little you really know. The DS has been a huge money maker for Nintendo. In fact, just last week they posted a gigantic gain from DS hardware + software sales. Next time you try to basha company, make sure you know what you're talking about.
The Nintendo way: cheap production, profitable games
lol it should be renamed to the asian way with slight modifications...
THE ASIAN WAY : Cheap Production, Profitable games... easily broken like their toys :)
Not to sound arrogant, but Nintendo products look and feel like they were made by Fisher-Price or Playskool.
They're always ugly flashy colors, poorly designed and molded out of cheap buck-store plastic. The GameCube looked like a Barbie Dream House and the DS looks like my old Spell-n-Speak.
Bragging that your production values are cheap and the fact they're depending on retro games as the major source of income are poor excuses for a re-marketed GameCube (litterally... read the other articles about the GPU).
I can play just about any old game on PC, XBOX, PS2 and PSP now anyway with emulators, and not for $10 each.