Somnid said:
It was two words and a not equal operator. How did you want me to make sense of it?
If there's a problem where your company's shitty policies for interacting with publishing partners are screwing over smaller publishers, shuffling them off to a tiny walled garden where the scope, price, and profitability of their products (as well as their control over them) is wildly curtailed isn't fixing the problem, it's sweeping it under a rug.
ccbfan said:
If Nintendo is fine with maximizing profit and being conservative at the risk of losing third party support then fine.
Well, the issue is that they're demonstrably
not fine with that, their shareholders are very much demonstrably not fine with that, and they have pretty much proven conclusively with the Wii that they are unable to maximally execute their own platform strategy with such a low level of third-party support. Soooooo....
viciouskillersquirrel said:
By mandating that minimum orders are X amount, you in effect minimise your downtime on your machines or limit it to a given value so that you're not so bogged down in small orders that you can't meet the big (high value) ones. It isn't unusual for plants that are set up to produce in volume.
Of course, when downtime implicit costs are sufficiently high compared to per-unit costs, what a strong and profitable platform-holder does is overprint restock orders, parcel them out in the small ordered amounts, and amortize the cost out over all their development partners, maybe with a "after X time you need to buy back extra overstock at $1/cart" rule or something. If you're Nintendo and stopping to reconfigure the line once costs you more than the actual materials/time cost for a run of 10,000 carts, it's better to look at someone who wants to reorder 500 carts, just pay for a run of 10,000 yourself, and sell them over to them in 500-cart chunks.
faridmon said:
however, the advertisment bit is bloody stupid, why would nintendo spend money on advertising games that the revune of the sales of those games will go to 3rd parties.
Do people not get that a) Nintendo gets a cut of between $4-10 on each piece of third-party software sold, b) third-party software helps make a platform more desirable, leading to more sales of hardware (which Nintendo profits on), and c) helps cover various bases in the software market, enabling Nintendo to focus their own efforts on their most profitable series and genres rather than having to produce a diverse range of underselling but necessary games to broaden the library?
The idea that third-party software is competing directly with Nintendo and so they have nothing to gain from it performing well is very naive. On Nintendo's most successful systems for third-party support (I'd say the SNES and DS) Nintendo and 3PPs covered very different bases overall, producing a situation where people buying the system for one would tend to end up also buying the other and thereby increasing profitability for everyone. This is the effect people want Nintendo to see and try to capture.
wsippel said:
And I always assumed that publishers had to pay the order up front anyway. Nintendo isn't a bank, they shouldn't have to take the risk.
Total nonsense. #3 is absolutely unacceptable and by far the worst issue on this list. Nintendo absolutely needs to shoulder part of the risk on cartridge orders for a variety of reasons: they set the prices and serve as absolute gatekeepers on production (companies can't shop around for better manufacturing deals), they allocate the timeframe for production, they set the minimum orders and are the ones putting in place the no-reorders policies that force companies to make larger first orders -- and they also profit off of the sales of these third party games.