I see this kind of maths time and time again on Neogaf but it isn't the case at all.
Nintendo doesn't even take HALF of that $39.99. Shops don't magically send all the money to Nintendo when they sell a game.
The games are bought in batches by stores, which then sell them on at a profit. A $40 game will probably be $20 tops per unit for Nintendo, from which it has to take shipping and production costs out.
Then the store has to deduct tax from its overall profit on that unit. Here in the UK, that's 20%, meaning that $8 goes to the taxman, $20 to Nintendo and $12 to the store, per unit.
This is being very generous to Nintendo - it may be more like $15 per unit.
More than Super Mario Run, no doubt! But then there's production and shipping, and of course a console game will cost much more to develop in the first place.
Please, everyone, when going forward to discuss sales or revenues of software, stop using MSRP. Unless every copy is digital Nintendo isn't bringing in full retail gross.
Sure it may make he arguement seem better but its not the truth. If you want to talk retail sell in use a $ amount closer to $45 ish for physical product. It will cover the bases and is a better example. Especially for Nintendo who rarely discount stuff. If you want to talke 3Ds games like this poster, uses some more like $30ish. Remember there are many other groups involved in Nintendos physical game distribution and they all make profit too.
So yeah, while Nintendo only had to sell 1million of a 3ds game to GROSS, ~$30million, this Iphone game cost them a fraction of time and resources and it involved only paying Apple whatever their negotiated cut is. Something tells me Apple may have taken less than the full 30% for the exclusivity of a Mario title.
Even then, the effort to bring in approx $21 million via super mario run is minimal compared to what goes in to even an average 3ds title. The NET profit here is what is going to cause the wide divide.
http://kotaku.com/5479698/what-your-60-really-buys
Correct in that each step of distribution takes a cut of the profit, but also correct that the mobile platform takes a cut of the 3rd party's sales. In terms of distribution cuts, that leans towards the digital platform sales on mobile. However, digital sales have increased on all dedicated platforms and such sales are 100% profit for the platform holder.
http://venturebeat.com/2014/11/06/2...es-are-digital-heres-why-thats-so-impressive/
20% or so of Smash 3DS's sales were digital, at least around launch. Pretty impressive
https://www.vg247.com/2016/11/02/di...sales-on-ps4-xbox-one-by-end-of-2016-says-ea/
It's expected that digital sales will make up 30% or so of dedicated platform unit sales now and in the near future.
When talking about net profit potential, there's a reason Nintendo wants to use mobile titles to drive users to its own dedicated hardware platform. That reason is not the profit margin on hardware.
In terms of net profit, as far as I'm aware, we do not know the budgets on games like ALBW versus Mario Run. Hence my original statement that we can't really go far with a discussion on this point. It's all conjecture. That said, Nintendo is known to run on slim operating budgets for projects, unlike the CoDs of the world.
Without knowing those budget numbers, I'd still wager it's highly unlikely that ALBW's budget was large enough to turn its greater sales numbers into lower net profits versus Run. And, again, that's a mild example. Nintendo has numerous franchises that sell much more than ALBW. Smash 4 combined (U + 3DS) has sold over 13 million copies, for example.
Further conjecture (with the least evidence): I'd bet it's harder to break incredible sales numbers on app stores versus dedicated platforms. That is, Pokemon Go with its $600 million in profit is an exception, not a rule that Nintendo can count on when making mobile titles. Their endeavors in the mobile space will be much more modest and less consistent than their efforts in the dedicated platform space: e.g. Mario Run with its modest profits and Miitomo with its steep user drop off versus the consistently high sales of titles Smash 4, NSMB U, and Super Mario 3D World, even on the maligned Wii U. Again, that's why they want to drive people towards their dedicated hardware, instead of banking on mobile as their future. imo