Nintendo: NX Won't be Sold at a Loss, Will Focus Heavily on Mobile

[Steven Bogos]

Nintendo: NX Won't be Sold at a Loss, Will Focus Heavily on Mobile

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Nintendo president Tatsumi Kimishima says that the Wii U was sold at a loss because the yen was very strong at the time - a situation the NX won't get.

Those of you expecting Nintendo's upcoming investor's call [http://www.escapistmagazine.com/tag/view/nintendo%20nx?os=nintendo+nx] that the company's new console will not be sold at a loss like the Wii U, and is being designed around this fact.

"We are not thinking of launching the hardware at a loss," said Kimishima. "When Wii U was launched, the yen was very strong. I am assuming that situation will not repeat itself. Selling at a loss at launch would not support the business, so we are keeping that mind in developing NX."

The Wii U, which launched in November, 2012, didn't become profitable until May of 2014.

Additionally, Kimishima once again pushed Nintendo's mobile initiatives, stating "we want to grow smart device gaming as one of the pillars of Nintendo's revenue stream."

In fact, even Nintendo legend Shigeru Miyamoto has been put onto smartphone development, as Kimishima explains "Of course, Mr. Miyamoto, our Creative Fellow, is also supporting the business for smart devices from a company-wide perspective. To explain the level of engagement of Mr. Miyamoto, he is having specific talks with developers of games for smart devices on what would be desirable overall. In that sense, what you see from the outside may be markedly different from what we see on the inside."

Not sure what this means for the NX, but we can probably expect a much more conservative machine, with a lot of smartphone integration.

Source: Nintendo [https://www.nintendo.co.jp/ir/en/library/events/160428qa/02.html]

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[Bob_McMillan]

Wow, that sounds incredibly appealing.

/sarcasm

 

[dragongit]

Sony and Microsoft were already selling their consoles at a loss, when they launched.

So you're telling me that this new console will not be. So it will literally have 400 dollars worth of hardware in there. No actual word on if the controller is like the Wii U and has a display, but if so, you can kiss half of the cost towards that. I thought they were trying to compete with current hardware. That, or they will hike up the price to well above 500-600 dollar range, which would be near suicide compared to the competition.

And to see the shift of focus towards mobile is depressing.Nothing says nintendo like cheap looking app titles.

 

[Nazulu]

So since their games aren't sacred to just consoles/gameboy's now, will they eventually expand to computer? Stay tuned to find out!

 

[The Enquirer]

Well this whole fiasco is turning into one loveable clusterfuck of ideas.

In all seriousness Nintendo does seem to do well in the mobile market and they've got no real competition. This could be interesting but the price point issue is worrisome.

 

[AzrealMaximillion]

Pretty sure the WiiU was the only time Nintendo sold a console at a loss. Sony and MS pretty much do this all the time. Not sure how much that matter for Nintendo right now. Us not knowing that the hell the NX is, that's what's hurting Nintendo right now.

 

[RJ 17]

Calling it now: the NX is going to just be Nintendo launching it's own smartphone.

 

[Drathnoxis]

The Bogos is back.

I thought you were laid off? What, did the Escapist come crawling in begging you to come back once they realized that they had literally no one to write articles for them anymore?

OT:

Calling it now: the NX is going to just be Nintendo launching it's own smartphone.

That's almost what it sounds like, but I wonder if that is really such a bad thing. A smartphone with a heavy focus on gaming, hmmmm, might be interesting.

 

[Rednog]

I'm morbidly curious as to how picture in the article was chosen. The president standing in front of the gamecube for an article talking about the NX, all it needs is a virtual boy in there too and it will be perfect.

 

[008Zulu_v1legacy]

A smartphone with a heavy focus on gaming, hmmmm, might be interesting.

Smartphone batteries are crap, and if you just leave it plugged in to the charger at all times, what's the point of making it mobile?

If you are in a country with excellent Internet and wi-fi (oh I don't know, Japan for example?), then a "mobile" console that relies on Internet connectivity isn't a bad thing. But if your console is only as fast as the slowest Internet connection, then Nintendo have lost the next Console War before it has even started.

 

[Owyn_Merrilin]

A smartphone with a heavy focus on gaming, hmmmm, might be interesting.

Smartphone batteries are crap, and if you just leave it plugged in to the charger at all times, what's the point of making it mobile?

If you are in a country with excellent Internet and wi-fi (oh I don't know, Japan for example?), then a "mobile" console that relies on Internet connectivity isn't a bad thing. But if your console is only as fast as the slowest Internet connection, then Nintendo have lost the next Console War before it has even started.

The reason smartphone batteries drain so quickly is because the manufacturers prioritize thinness over battery life. I'd imagine a dedicated gaming phone from a company like Nintendo would be a little chunkier to accommodate things like face buttons, which would also leave room for a bigger battery and longer battery life.

 

[Guffe]

Aaaaww maaaan!!!
I am no big fan of smartphones, the only app I use is whatsapp, I might go check my Facebook if I haven't been able to get on a Computer for a few days but that's about it... And that the next console of Nintendos' is supposed to be heavily phonebased. sigh...
Seems like I have to start catching up with time and become like all my friends who use all the apps possible and update some sort of social media on a daily basis :O
Well, we'll see what it turns out to be in the future.

 

[Fox12]

Nintendo software is perfect for a smart phone. Mario style platformers would probably fit quite well. It doesn't hurt that Nintendo games have that bright pleasant look that apps tend to go for, and that they appeal to children. Nintendo has typically done pretty well with the casual market, and their love of gimmicks could suit them here. They also have more experiance with handhelds then anyone else.

The Nintendo faithful will probably feel like the Band of the Hawk, but since when did Nintendo care about them? They're just stepping stones toward Nintendo's bright, money filled castle, and they'll need many more bodies to reach the top.

Love it. Can't wait for them to tout how it will be as strong as an Xbone, a console from 3 years ago. Though that won't be nearly as embarrassing as when the WiiU was being proudly proclaimed as a console that is as strong as a PS3, with a 6 year difference between the two.

The dreamcast was proudly stronger then a PS1, and we all know how that turned out.

 

[CrimsonBlack]

Would it kill Tatsumi Kimishima to smile a little in pictures? Dude looks like he's just been told his pet iguana has died.

 

[008Zulu_v1legacy]

The reason smartphone batteries drain so quickly is because the manufacturers prioritize thinness over battery life. I'd imagine a dedicated gaming phone from a company like Nintendo would be a little chunkier to accommodate things like face buttons, which would also leave room for a bigger battery and longer battery life.

I would like to take you on a journey, back in to to the year 2002, and Nokia's N-Gage phone/gaming handheld hybrid.

 

[Eternal Visitor]

The reason smartphone batteries drain so quickly is because the manufacturers prioritize thinness over battery life. I'd imagine a dedicated gaming phone from a company like Nintendo would be a little chunkier to accommodate things like face buttons, which would also leave room for a bigger battery and longer battery life.

I would like to take you on a journey, back in to to the year 2002, and Nokia's Ngage smartphone/gaming handheld hybrid.

that thing was just flat poorly designed, couldn't hot-swap games, portrait screen orientation and phone style keypad where face buttons should have been, no sane designer would try something like that again (one can only hope)

 

[Kajin]

If Nintendo came out with a game oriented smart phone? I'd probably get it. At least after my current smart phone breaks, anyway. If it isn't too much more expensive than other smart phones and I can use it like any other smart phone regardless of whether or not I have any games for it then why the hell WOULDN'T I get one?

This could actually be a smart move on Nintendo's part if done right.

Assuming, of course, that it is indeed a gaming smart phone. And that they do, of course, do it right.

 

[xaszatm]

PS4/Xbone were both touted to not be sold at a loss by their respective companies. After the PS3 and 360, they didn't want to lose money for 5 years. (Mainly applies to the PS3.)

Not entirely true, both the Xbox One and PS4 initially did sold under a loss. The big news was that the PS4 loss was mitigated with either one yearly online subscription or one additional game. This was much better when you compare it to say last generation where multiple games were required to turn the loss into a gain. Of course, within a year production costs for the units decreased so even with the price cut, those two consoles now sell at a gain, even with the price cut so you are right.

Also, I could be remembering this wrong, but didn't the Kinnect 2.0 give the Xbone a larger loss lead?

Would it kill Tatsumi Kimishima to smile a little in pictures? Dude looks like he's just been told his pet iguana has died.

I'm morbidly curious as to how picture in the article was chosen. The president standing in front of the gamecube for an article talking about the NX, all it needs is a virtual boy in there too and it will be perfect.

What's weird is that there are photo's of him smiling like this one:

[img='http://kyodonews.net/resources/20150914KW___0056200010.PH.-.-.N.CI0004.jpg']http://kyodonews.net/resources/20150914KW___0056200010.PH.-.-.N.CI0004.jpg[/img]

Then again, he doesn't really have a Nintendo-like smile so maybe that's why? Also probably because he's staring into your soul.

OT: It kind of sounds like more they're planning on having the NX have a profit than confirming it have a profit. Also, who in their right mind is thinking Nintendo would sell their console at a loss? Nintendo, while diversifying, is still primary a console manufacturer. They currently don't have the infrastructure to profit in other division in significant ways to combat such a strategy like Sony or Microsoft can. I mean, look at there current projections for the year. It's low and their belief that the Wii U will only sell 800,000 units worldwide has a lot to do with it.

As for mobile, I've accepted that they're going to be doing mobile. I am going to be amused however when everyone realizes that Nintendo has no plans on replacing their handheld devices with mobile gaming, rather planning on using mobile gaming as an extension to their platforms. Well, more on another site anyways.