• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

What would happen to Nintendo if the NX flops like Wii U?

JoeM86

Member
Wouldn't a third party Nintendo be a shell of its former self?

I would think they would take in less revenue because you're eliminating their digital platform, any money they make from console sales and a cut of third party games that are on their platform (lol I know) and adding a % of profits they'd have to fork over to Microsoft and Sony.

Would their profits increase without a significant downsizing?

Pretty much.

For 3DS and Wii U, on average they've published just under 1 title a month on each device. If they were to go third party, there's no way in hell they'd be putting out ~24 games a year.
 

geordiemp

Member
It's over? So if NX flops they just shut down entirely?

Source for this?

Check out Nintendo stock price jumps and market comments over past year since the mobile announcements, and drops when mobile was not a major IP, then ....OK, do your own homework...... Its pretty clear what excites the market.

If you think that Nintendo stocks are not heavily influenced by mobile opportunities then you have been living under a rock...in your own little world....
 

Az987

all good things
Theyre not going to go third party, at least not if the NX flops, I can guarantee it.

Has everyone here forgotten how they are putting their IPs to work a lot more as of late with movies in the works, the universal theme park deal and who knows what else they have in the works? Why do you think that is?

To be able to still perform well when they have a Wii U flop.

Not to mention a mega hit movie WOULD sell Nintendo consoles if it's the only place to play their games.
 
Well I'm optimistic, but I'm someone who really enjoys the Wii U. It's quite possibly my favourite console of all time, and I'm not ashamed to admit it. Nintendo's game output on it has been astonishingly good and I love the GamePad. It's not revolutionary, but it brings lots of QoL improvements for me.

But I'm not one who salivates over specs so that may be why.

My pessimism isn't based on worrying about the NX's software. While I have my issues with Nintendo's software output as a whole, there is no doubting Nintendo's ability and consistency when it comes to making great games.

My pessimism is based on hardware sales and the longterm issues it will cause for Nintendo as a hardware manufacturer. I don't think Nintendo can continue to struggle in the home console space, especially if they don't make dedicated handheld devices anymore (or if mobile/tablets really erode the market), and continue to make hardware.
 

yesrushdt

Member
Those that don't learn from past mistakes are doomed to repeat them.

Really pissed after hearing Reggie's quote regarding the power of the NX. Nintendo should be going out of their way to make the NX as powerful as possible, even if it means initially selling the system at a loss. The PS3 was sold at a loss and sold poorly at the very beginning, however it evenutally became a big success.

I wanna be wowed graphically the same way I was 20 years ago upon playing Super Mario 64 for the very first time. Enough of these gimmicks like motion controls and a gamepad with a lcd screen. Innovative, ground breaking graphic technology with 4K+ resolution is what Nintendo needs to be focusing on for the NX. I really hope this is the case, however the reality probably is that Nintendo will continue making the same mistakes and end up being a software developer like Sega.
 

b3b0p

Member
If they continue to post profits I don't think anything will happen to Nintendo. They'll just continue to iterate and focus on the market that buys their products.

If they did third part the quality of the product would drop. The appeal would drop. Their desirability both in the eyes of a consumer as well as collectors would drop to nil. If they went third party I feel like it would destroy their brand and they would be in a worse position and it would be harder for them to grow and continue to profit in video games.
 

JoeM86

Member
Those that don't learn from past mistakes are doomed to repeat them.

Really pissed after hearing Reggie's quote regarding the power of the NX. Nintendo should be going out of their way to make the NX as powerful as possible, even if it means initially selling the system at a loss. The PS3 was sold at a loss and sold poorly at the very beginning, however it evenutally became a big success.

I wanna be wowed graphically the same way I was 20 years ago upon playing Super Mario 64 for the very first time. Enough of these gimmicks like motion controls and a gamepad with a lcd screen. Innovative, ground breaking graphic technology with 4K+ resolution is what Nintendo needs to be focusing on for the NX. I really hope this is the case, however the reality probably is that Nintendo will continue making the same mistakes and end up being a software developer like Sega.

You do know that going ridiculously high spec isn't exactly a profitable venture right? PS3 didn't make back money lost at all.

Unlike MS and Sony, Nintendo don't have other revenues to eat losses, hence the FY3/2012 loss. As such, Nintendo need to make a profitable system that will sell, not one that will just eat all their cash.
 
If they continue to post profits I don't think anything will happen to Nintendo. They'll just continue to iterate and focus on the market that buys their products.

If they did third part the quality of the product would drop. The appeal would drop. Their desirability both in the eyes of a consumer as well as collectors would drop to nil. If they went third party I feel like it would destroy their brand and they would be in a worse position and it would be harder for them to grow and continue to profit in video games.

Why would any of those things happen if they dont have a badly selling plastic box to go with their games?
 

Vena

Member
Nintendo already went third party about a year ago, unless Nintendo suddenly now own Google and Apple eco systems.

Nintendo properties have been on non-Nintendo platforms since like 1992. You're playing meaningless semantics with "third party" which is completely besides the point of what others are saying.

In effect, a meaningless statement.
 
These threads are always entertaining. Why do people not understand that Nintendo does have a finite amount of money and also is a publicly traded company? They can't keep failing and losing money. They won't keep making hardware when it costs them money. Their shareholders won't allow it. When a company loses money, and investors dump stock, the remaining stock becomes worth less. Despite neogaf financial experts proclaiming "time to buy Ninty stock!", anyone who does so will lose money. Make no mistake, the NX success is critical for Nintendo as we know it. Nintendo knows this too.
 
Nintendo will never compete on specs again. And that's okay. It's not the only way to succeed in the gaming market.

"Wait!" you say, "But what about third parties?" That ship has sailed. Nintendo does not have the infrastructure, relationships, or network functionality to please AAA third party developers that thrive off microtransactions and online communities.

So, to your question:

What would happen if NX flops like Wii U?

It won't matter.

NX will be measured across two pieces of hardware, maybe more. NX is a platform. If Nintendo sells 10 million NX consoles but 60 million NX handhelds (equivalent to Wii U and 3DS install bases), then their total NX base is 70 million.

That's 70 million people to sell their software and potential services to. No more putting half their development resources towards a platform with 10 million. All resources go towards satisfying a base of 70 million. Software is the money-maker in this industry.

What happens if NX sells like Wii U? Nintendo will be fine. And for those holding out hope of a high-powered console, I hope you enjoy the PS4K and Scorpio.
 

geordiemp

Member
If they continue to post profits I don't think anything will happen to Nintendo. They'll just continue to iterate and focus on the market that buys their products.

If they did third part the quality of the product would drop. The appeal would drop..

Nintendo are already third party, the quality argument is rubbish, will quality drop now that Nintendo have released its first of many mobile games ?

Nintendo properties have been on non-Nintendo platforms since like 1992. You're playing meaningless semantics with "third party" which is completely besides the point of what others are saying.

In effect, a meaningless statement.

Source ? I dont recall any big Nintendo game franchises being released by Nintendo on Non Nintendo hardware ?
 

120v

Member
No doubt in my mind NX will be their last console if it flops, barring some streaming device or whatever. Whether nintendo still has a place in the console market is a huge question mark
 
oh man. that is very, very optimistic. I think above N64 numbers is optimistic at this point, even with third parties and correct marketing.

as for pricing, Xbone Slim is already $299 when it launches later this year. by the time NX and Neo drop, it could very well be $249, as could vanilla PS4.

At the lowest, I think NX will launch at $249. More likely $299. But the bottom line is the PS4 and Xbone will still offer a far better value. It's Wii U vs. 360 and PS3 all over again.
This is how I feel. I think the success of the NX will hinge on what unique features are included they set it apart from the others.
 

jonno394

Member
Those that don't learn from past mistakes are doomed to repeat them.

Really pissed after hearing Reggie's quote regarding the power of the NX. Nintendo should be going out of their way to make the NX as powerful as possible, even if it means initially selling the system at a loss. The PS3 was sold at a loss and sold poorly at the very beginning, however it evenutally became a big success.

I wanna be wowed graphically the same way I was 20 years ago upon playing Super Mario 64 for the very first time. Enough of these gimmicks like motion controls and a gamepad with a lcd screen. Innovative, ground breaking graphic technology with 4K+ resolution is what Nintendo needs to be focusing on for the NX. I really hope this is the case, however the reality probably is that Nintendo will continue making the same mistakes and end up being a software developer like Sega.

So Nintendo should make a bleeding edge console and sell it at a loss, makes sense. You do realise that even though the ps3 eventually became a success, it lost them a lot of money.
 

Kouriozan

Member
Wouldn't a third party Nintendo be a shell of its former self?

Don't forget that they would want to make profits for all their games if that happens, so RIP smaller games like Fatal Frame.
Also, Nintendo wouldn't be able to localize Level 5 or Square Enix games anymore.
 

geordiemp

Member
Microsoft have games on Nintendo home console and portables, Microsoft third-party confirmed?

They bought out a company who were third party yes, we all know that. Not easy to handle when Micecraft is on everything.

Anyway thats not the point, Nintendo will expend into mobile gaming in future, its happening already whether gamers on Neogaf like it or not.
 
Nintendo properties have been on non-Nintendo platforms since like 1992. You're playing meaningless semantics with "third party" which is completely besides the point of what others are saying.

In effect, a meaningless statement.
Are you seriously comparing internally developed mobile games to outsourced PC edutainment titles from over 20 years ago? I said wow.
Nintendo will never compete on specs again. And that's okay. It's not the only way to succeed in the gaming market.

"Wait!" you say, "But what about third parties?" That ship has sailed. Nintendo does not have the infrastructure, relationships, or network functionality to please AAA third party developers that thrive off microtransactions and online communities.

So, to your question:

What would happen if NX flops like Wii U?

It won't matter.

NX will be measured across two pieces of hardware, maybe more. NX is a platform. If Nintendo sells 10 million NX consoles but 60 million NX handhelds (equivalent to Wii U and 3DS install bases), then their total NX base is 70 million.

That's 70 million people to sell their software and potential services to. No more putting half their development resources towards a platform with 10 million. All resources go towards satisfying a base of 70 million. Software is the money-maker in this industry.

What happens if NX sells like Wii U? Nintendo will be fine. And for those holding out hope of a high-powered console, I hope you enjoy the PS4K and Scorpio.

Going by 3DS' TTM sales trends, it's very naive to think that the NX handheld will sell anywhere near 60M.
 

Kill3r7

Member
Nintendo will continue marching on. Maybe they consider creating a PC store if MS' strategy proves to be successful. You figure Nintendo games would do really well on PC.
 

anaron

Member
These threads are always entertaining. Why do people not understand that Nintendo does have a finite amount of money and also is a publicly traded company? They can't keep failing and losing money. They won't keep making hardware when it costs them money. Their shareholders won't allow it. When a company loses money, and investors dump stock, the remaining stock becomes worth less. Despite neogaf financial experts proclaiming "time to buy Ninty stock!", anyone who does so will lose money. Make no mistake, the NX success is critical for Nintendo as we know it. Nintendo knows this too.

seriously, the delusion is insane.
 

aBarreras

Member
They bought out a company who were third party yes, we all know that. Not easy to handle when Micecraft is on everything.

Anyway thats not the point, Nintendo will expend into mobile gaming in future, its happening already whether gamers on Neogaf like it or not.

he wasnt talking about minecraft
 
They bought out a company who were third party yes, we all know that. Not easy to handle when Micecraft is on everything.

Anyway thats not the point, Nintendo will expend into mobile gaming in future, its happening already whether gamers on Neogaf like it or not.

No one's claiming they're not? Unless you're trying to say that they'll go mobile, exclusively? If that's the case, you're wrong whether you like it or not.
 
D

Deleted member 752119

Unconfirmed Member
Don't forget that they would want to make profits for all their games if that happens, so RIP smaller games like Fatal Frame.
Also, Nintendo wouldn't be able to localize Level 5 or Square Enix games anymore.

Smaller games could be digital only, $40 type of games since their budgets are smaller.
I'm hoping Ratchet and Clank starts a trend of bringing back mid-tier, lower budget titles at lower prices.

Anyway, most people only want Nintendos AAA franchises without having to buy their hardware so most would be fine with it. It would just suck for diehard Nintendo fans. At least the indie scene is huge now.
 

Az987

all good things
Nintendo already went third party about a year ago, unless Nintendo suddenly now own Google and Apple eco systems.

Putting out apps on smart phones is hardly the same thing as putting out games on Sony and Microsoft consoles.

Apps are income they never had before.

Going from a hardware maker to a third party publisher/developer is completely changing their company.
 

Daft Punk

Banned
Theyre not going to go third party, at least not if the NX flops, I can guarantee it.

Has everyone here forgotten how they are putting their IPs to work a lot more as of late with movies in the works, the universal theme park deal and who knows what else they have in the works? Why do you think that is?

To be able to still perform well when they have a Wii U flop.

Not to mention a mega hit movie WOULD sell Nintendo consoles if it's the only place to play their games.

A movie is not going to influence people to buy a console. That's why investors and the market are pressuring Nintendo to go mobile. Everyone loves Nintendo IPs and software, but not everyone loves their hardware. What do you think will happen if they made a bunch of F2P games with Nintendo characters? Nintendo would make money hand over fist.
 

neoism

Member
They'd try again. They're not exactly hurting for money.

they need to realize that having the best or just as good as the competitors with hardware is really important....but when you aim the lowest you usually end up last...
also make 1st party games faster.. but yeah they would keep tryin im sure
 

Mithos

Member
he wasnt talking about minecraft

Indeed I wasn't. However (my reply to the following)

They bought out a company who were third party yes, we all know that. Not easy to handle when Micecraft is on everything.

Anyway thats not the point, Nintendo will expend into mobile gaming in future, its happening already whether gamers on Neogaf like it or not.

Wasn't even thinking of Minecraft, but since you brought it up, yeah they bought Mojang, and after that they made/erleased a Nintendo version, it's also the first game owned by Microsoft that Microsoft themselves act as publisher on on a non-Xbox console in Japan (Microsoft def. a thirdparty now ;P).
 

Shredderi

Member
It would put them in a difficult position I think. Their shareholders won't just let them do this again and again in the hopes that one of these times it'll work again. Disappointed by Reggie's comments about NX's power, but maybe it means the console will be really cheap. Burn the moneysink that is the gamepad in hellfire so you can have a package that doesn't spike in price because of the stupid controller and I almost guarantee that I will buy it for the new Zelda and one or two other games in the consoles lifetime.
 
They would likely create a digital storefront/platform like Steam before they start releasing games on Sony/Microsoft consoles, maybe with a handheld piece of hardware involved as well. They aren't going to pay a ~33% royalty to release their games on another console.

We just had a 17 page thread absolutely begging for Sony to go third party despite one system being infinitely successful. But here, it's Nintendo flops and "it's nothing but a flesh wound".

That's about releasing games on the PC, something that everyone wants to see from every company. Releasing games on a different console is a completely different scenario.
 
D

Deleted member 752119

Unconfirmed Member
Going by 3DS' TTM sales trends, it's very naive to think that the NX handheld will sell anywhere near 60M.

If they can pull off some semblance of a shared library across portable and console and sell 50-60+ million combined they could make a lot of money given the attach rate for their titles is already high and would go up if everyone who owned either platform could buy the title.

Nintendo will continue marching on. Maybe they consider creating a PC store if MS' strategy proves to be successful. You figure Nintendo games would do really well on PC.

Gaming will eventually be all App Store fronts anway, and eventually with the processing done in the cloud.
 

Ninja Dom

Member
they need to realize that having the best or just as good as the competitors with hardware is really important....but when you aim the lowest you usually end up last...
also make 1st party games faster.. but yeah they would keep tryin im sure

Not always.

Wii, DS and 3DS show us that aiming for low hardware doesn't get you last.
 

Delio

Member
If they did go Third Party I see them only pushing thier games on Steam/Sony consoles anyways. No idea why people think they would jump with MS as well. Hey side effect is Sony becomes even stronger and leaves MS even more in the dust.
 

Az987

all good things
These threads are always entertaining. Why do people not understand that Nintendo does have a finite amount of money and also is a publicly traded company? They can't keep failing and losing money. They won't keep making hardware when it costs them money. Their shareholders won't allow it. When a company loses money, and investors dump stock, the remaining stock becomes worth less. Despite neogaf financial experts proclaiming "time to buy Ninty stock!", anyone who does so will lose money. Make no mistake, the NX success is critical for Nintendo as we know it. Nintendo knows this too.

Their share holders will hold on. Their stock was under 12 dollars a share 3 years ago and now it's 18. Did the company just disintegrate when it dropped from 77 a share to 11.89 in a little over 4 years? Did the share holders force Nintendo to change how they operate then?

They will explain that the deals that they've been putting in place outside of gaming are to add growth and eventually fuel hardware sales and everything will be fine.
 

JoeM86

Member
Smaller games could be digital only, $40 type of games since their budgets are smaller.
I'm hoping Ratchet and Clank starts a trend of bringing back mid-tier, lower budget titles at lower prices.

Anyway, most people only want Nintendos AAA franchises without having to buy their hardware so most would be fine with it. It would just suck for diehard Nintendo fans. At least the indie scene is huge now.

To be fair, Nintendo has been doing that for a few years as seen recently with Splatoon and Captain Toad.
 

Az987

all good things
A movie is not going to influence people to buy a console. That's why investors and the market are pressuring Nintendo to go mobile. Everyone loves Nintendo IPs and software, but not everyone loves their hardware. What do you think will happen if they made a bunch of F2P games with Nintendo characters? Nintendo would make money hand over fist.

And aren't they doing that?
 
Going by 3DS' TTM sales trends, it's very naive to think that the NX handheld will sell anywhere near 60M.

We're also looking at a platform without (as many) fatal droughts that 3DS experienced. You're looking at THE platform for all Nintendo content.

Even if the NX handheld sold 50 million, maybe the console sells 20 million. Nintendo still gets to sell every piece of their software to a combined base. Nintendo would no longer have to care where you play their games.

This is uncharted waters for Nintendo. Regardless of the color of the ocean.
 
D

Deleted member 752119

Unconfirmed Member
Nintendo really has 3 potential markets to tap into.

1. Fans of their games, including lapsed fans that skipped Wii U.

2. Kids/families/casuals.

3. As a secondary platform to core gamers who want something different than the standard fare on Sony/MS/PC.

The Wii Us price hurt it in all 3 markets, especially the 2nd and 3rd. So the NX hopefully being $250-300 at launch could help some. Especially if they have a good launch and first year library and market it well.

Have a solid bunch of good exclusives that offer something different than the big games on the other platforms and come in cheap makes it an easier impulse buy for families and for core gamers wanting a secondary platform.

Time will tell if that happens and if it works of course.
 
A movie is not going to influence people to buy a console. That's why investors and the market are pressuring Nintendo to go mobile. Everyone loves Nintendo IPs and software, but not everyone loves their hardware. What do you think will happen if they made a bunch of F2P games with Nintendo characters? Nintendo would make money hand over fist.

Ahem, The Wizard.

That movie was litteraly a commercial.
Not only that they had cartoons, Captain N, the mario show, which had mario cartoons and zelda bits. They won kids heart back then ever since theyve done nothing of the sort.
 

Sephzilla

Member
What would happen if the NX flops?

718.gif


That, because Nintendo is still loaded with cash
 
People really still juggle the idea of them going third party? Maybe smartphone apps, but I'm pretty sure they've stated they're out of consoles if they ever stop making them.

They'll hurt, but they'll be fine for a good while, I feel. Gotta keep their war chest in mind when thinking about this; they've made a lot of money over the years.
 
Top Bottom