I find it perplexing when people use the argument "the 3DS will keep Nintendo...

#3140DribylfPosted 12/26/2012 10:53:52 AM
The DS is now the best selling gaming device, just beating out the PS2. It's funny because it didn't start selling well until the DS Lite came out.

The 3DS is going down that same path (well better than the DS, really), selling amazing well each month, with no signs of stopping.

Nintendo's handheld business is fine. I think consumers are smart enough to realize, "Hey, handhelds do this and tablets do that"

Now, anyone else's...
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#32OtakuGameraPosted 12/26/2012 10:56:15 AM
I know! It's like technology changes at a rapid rate that allows for decreases of prices and components rather quickly!

do you even realize what you're saying? it was launched at 250, they drop it to 170, 80$ decrease and they still manage to turn a profit months later, technology changes quickly but not that quick.
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#33kissdadookiePosted 12/26/2012 10:59:42 AM(edited)
squatch22 posted...
Ppl forget Nintendo is the only console maker to actually make money last Gen...


Make money on the hardware last gen. MS made plenty of profit from the Xbox through licensing. Positive profits, not net losses for MS yet they are still netting a loss I believe on each 360 sold.

Nintendo made plenty of money on their hardware last gen but that is also to their detriment. When sales of the hardware declined, their financials dropped like a rock. They had no other alternative revenue streams and we saw what we saw from their financials last yet. There's also another problem with them making the majority of their revenue from hardware, them being a Japanese company, this makes them heavily reliant on export. The bulk of the world's video game market generates their revenue from the western markets, Japan simply can not sustain a company like Nintendo. Japan is a big market but it's only roughly 1/3 of their business. So as you can see, the world's economic problems are not going away any time soon, thus it's very bad news for Nintendo since they are so reliant on hardware revenue and thus very reliant on export. The exchange rate is doing them no favours and on top of that, their hardware sales are not very impressive. So you have a hardware sales slow down combined with horrendously bad exchange rates, this just equates to a downward spiral for Nintendo. On top of this, Nintendo has reduced it's profit margins on both the 3DS as well as the Wii U. So altogether, it's quite obvious that Nintendo needs to change their business strategy and start figuring out alternative revenue streams to be able to keep forging ahead.

Yes, in the short term they will be perfectly fine, but all businesses are played for the long term. Unless you honestly believe that the world's economy will significantly change for the better in the next 5+ years, Nintendo doing the type of business they have been and are currently doing is just going to be a continued downward spiral on their balance sheet year over year.

None of this is really a knock on Nintendo, but it's foolish to think that Nintendo will be fine just because they have a few billion sitting in the bank. For the short term, they will be fine, for the long term considering how the world's economic landscape is going, it's troublesome. What makes it worse is that Nintendo currently doesn't have strong alternative revenue streams nor do they have many liquid-able assets thus if they don't quickly forge new alternative revenue streams, they are going to find themselves becoming less and less flexible with their billions draining out of their account faster and faster each year.
#34StealthlysPosted 12/26/2012 11:15:03 AM
Sonys flopping, and sell flopped junk at this moment. Fitch "Sony is -bbb junk status"
#35GoombaXPosted 12/26/2012 11:18:43 AM
Phange 2 posted...
...afloat"

Do people not realize that it has thus far been the costliest mistake Nintendo has ever made (due to timing, an unwarranted price drop, and a strong yen)?

Nintendo desperately needs e Wii U to sell gangbusters and with a high first party attach rate. The 3DS is causing them to hemorrhage cash at an unprecedented rate.


iot caused them to lose cash once, now it is very profitable for them.
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#36EastCoastKodyPosted 12/26/2012 11:19:01 AM
Stealthlys posted...
Sonys flopping, and sell flopped junk at this moment. Fitch "Sony is -bbb junk status"

I don't understand why the trolls keep thinking that Nintendo is going to become a software only company???

If anybody is getting kicked out of the video game industry, its gonna be Sony.
#37Kounse11orPosted 12/26/2012 11:19:21 AM
TC hasn't addressed the link provided since he got pwned.
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#38StealthlysPosted 12/26/2012 11:19:52 AM
GoombaX posted...
Phange 2 posted...
...afloat"

Do people not realize that it has thus far been the costliest mistake Nintendo has ever made (due to timing, an unwarranted price drop, and a strong yen)?

Nintendo desperately needs e Wii U to sell gangbusters and with a high first party attach rate. The 3DS is causing them to hemorrhage cash at an unprecedented rate.


iot caused them to lose cash once, now it is very profitable for them.


I would love to see tc back up his post citing sources, and evidence, instead of ass-pull.
#39drothegreat0nePosted 12/26/2012 11:28:27 AM
Kiss and his essays. Condense your point fool
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#40dart246Posted 12/26/2012 11:31:26 AM
I honestly don't think "kissdadookie" has much idea what he is talking about, but then again, with a name like that, are you surprised?
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