Posted by: seanmalstrom | January 22, 2017

Email: Switch sales/Nintendo profits

Sean- If the switch is not quite as popular as the wii, as you predict, and let’s say, sells approx 60-70 million units during its lifetime, is that a “big enough” hit for Nintendo? I.e. Will it be profitable for Nintendo? For 2011, the first year of an annual loss for Nintendo, it sold approximately 28 million systems (wii, ds, 3DS).

We need to know what the costs are. Is the Switch hardware profitable for Nintendo? I should hope so with the prices they have on these damn accessories.

We do know from Nicalis that the cost of manufacturing a Switch cart and box is about $5. Hence, Binding of Isaac + Expansions = $35 + $5 for manufacturing = $40 Retail price. The vast amount of profit is going to be selling software.

Wii Sports being bundled with Wii at the start was disliked by NCL (though it paid off in sales so they said nothing) since it removed the most profitable aspect of the system (the flagship game) from the purchase. Third parties didn’t like Wii Sports either because they would buy the Wii and already have a game. They didn’t have to buy a third party game. Some gamers say they didn’t want Wii Sports included, and they should have the option to choose what software they wanted.

NOA and NOE got flak for the Wii Sports and Wii bundle unbelievably.

I do not have a problem with Nintendo jacking up the price to sell product at profit. This actually gives me a feeling of ease. When a company sells a product at a loss, they will find ways to make it up which is not something the consumer will like.

I consider the 8-bit and 16-bit consoles and games the gold standard of quality. Give me hardware that behaves as consistently as that, with games that are as high as quality in content, on cartridges, and I will be very happy.

Image result for snes and games

Above: Still better than AAA gaming of ‘Game Industry’s Finest’.

Image result for snes and games

Above: Contra 3! Fuck yeah!



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