Amir Kondori said:
No one has "enough money that it doesn't matter". Nintendo has offices around the world, thousands of staff, large infrastructure, and all of that costs money. Its called "operating expenses". Also, Nintendo is a publicly traded company and its leaders have a fiduciary duty to make money for its investors. If the WiiU is a failure Nintendo will either have to restructure, laying off employees, cancel games in production, and possibly sell property just like THQ towards the end, or completely kill its console division and become a software company like SEGA did. They certainly don't have "enough money that it doesn't matter".
Luckily their mobile business is very good, but of course that is under threat from smart phones and tablets. If the WiiU fails they could find themselves embattled from all sides. If the WiiU fails they will likely end up as a publisher only.
This is just getting ridiculous. I'm sorry, but your economics here are completely off-base.
Laying off employees, cancelling games and selling property in the manner you're talking about only happens as a last resort. Companies only do things like that for financial reasons
when they don't have the capital to keep those resources going.
Nintendo has currently got $13 billion sitting in the bank. That's $13 billion worth of capital. That means that if the Wii U struggles or fails to find an audience,
they don't need to fire people or sell property, because they have the capital to essentially pay off the loss. When the 3DS struggled to sell at launch and was given a price-cut, Nintendo did not cut
any jobs in order to finance that. They didn't cancel any games. They did the opposite in fact. They used some of their stored up capital from the DS and the Wii to fund the development of more games, to increase marketing and to offset the loss that the 3DS was being sold at. It worked, as the 3DS is now selling incredibly well, and at a profit. They spent some of their capital in order to bring in more capital. The only cut that happened was the 50% cut that Iwata inflicted on his own salary as a way to apologise for not doing enough. That's it. No job cuts. No real estate sales. No development studios were axed.
With $13 billion in the bank, they can afford to do exactly the same for the Wii U. They have no reason to axe jobs or development on the Wii U when they already have the cash to pay those salaries and for those games in the bank. They have no need to sell real estate when
they're building a new Kyoto HQ.
Lastly, they have no reason to bow out of the hardware race when it makes them
more money than being a software producer ever could be. They don't just profit from hardware sales and first-party games, they get royalties on
all games sold on their systems. If they went third party, they would have to
pay royalties to other hardware owners.
There isn't a third party publisher out there worth what Nintendo is currently worth. EA are worth $2.5 billion
in total, assets included. Nintendo have got $13 billion sitting in the bank alone. If you add up all their assets, the company is worth even more. Not even Activision is worth that much.
Nintendo will keep making hardware, because that's where the big money is. Going software only would result in a huge loss of income for them. THQ went bankrupt because of a lack of high selling games, piss-poor management and the absolute financial disaster that was the UDraw device, a device they simply couldn't afford to bankroll if it didn't sell. The Wii U could flop entirely, and Nintendo would still have more than enough money to stay in the console race.
CrossLOPER said:
x-Tomfoolery-x said:
I see the j-e-f-f-e-r-s bait is set. We will get you this time, Dark Guardian of Nintendo!
I don't get it. Does he just sit around waiting for Nintendo threads? I wish I had that kind of dedication to some things.
Every time a Nintendo thread gets posted, a small army of Goombas find out and report it back to me.
Go, my pretties. Bring me more Nintendo threads to be defended.
Seriously, who the fuck centers their console around what should be a special gimmicky peripheral for a hot title, twice?
If the Kinect 2 rumours are true, Microsoft.
