But the point of bringing up the Phil Spencer quote was that this thinking drove Microsoft to branch out in a more multi-platform direction and it ultimately ended up killing the brand. People stopped buying Xbox because you can just get it elsewhere. That is the risk here.
(Higher ups imposed that because they wanted to chase rapid short term profits at the expensive of long term longevity. A tale as old as time.)
That's revenue data for their own first-party releases. Let's say in an absolute best case scenario they consistently pulled that number yearly over the last 5 years (they didn't) = so i'll be generous and assume $3 billion, tops.
In the last 5 years on PS5 they pulled in revenue of $136 billion. People don't realize that Sony barely make their money off their own releases, it's from the cut they take for everything. There are nearly 4000 games released on PS5 and SIE have made, what, a couple of dozen?
Their PC numbers sound impressive on paper but it's pocket change in the grand scheme of things.
Exclusives are a gateway drug to get people into an ecosystem and spend money.
You're painting Nintendo as ignorant when it's the exact opposite. They're smart for protecting the long term health of their business.
Here's what happens if they start selling on other consoles:
- People slowly stop buying their hardware, because why bother? It's all on PC and PS5 now. This is especially pertinent for Nintendo, as they are one of the few companies who tend to make directly profitable hardware rather than selling it as a loss leader and making it up with software sales.
- As their hardware sales decline, people engage with and spend less on their ecosystem, resulting in the decline of online subs, microtransactions and their 30% cut from spending on third parties.
- Eventually once they've transitioned fully to a software company, hardware sales reach rock bottom (like Xbox), and they become completely third party, losing the entirety of those other highly lucrative revenue streams
- those hypothetical higher sales numbers which the investors pushed for (who are retards btw), now totally reliant on coming from other platforms, then fails to bring in nearly as much money than if they had just locked them down to their own platform