Eidos: Bye bye GC, you won't be missed

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akira888 said:
Sorry if this offends anybody but I just don't see how Nintendo couldn't increase their market cap dramatically by becoming a multi-platform dev.

how does that increase the market capitalisation of the company??
 
akira888 said:
Sorry if this offends anybody but I just don't see how Nintendo couldn't increase their market cap dramatically by becoming a multi-platform dev. One can only imagine the sales of SMS, TLZ:WW, or Metroid on a PS2/Xbox joint release. After all, look at all the monotonous crap that sells on those systems quite well, Nintendo would really clean up as a multi-plat dev. That's probably their future, I hope.

and Sega said they would become the 1st 3rd party worldwide by mid 2003, just multiplying their DC sales by the ps2 userbase. It is not that simple.
 
What I meant is that Nintendo would be worth more (market cap) as a multi-plat dev than as a console maker, reason being that their profits would increase. Increasing the share price is all the company board really cares about of course, being that it's their job and all. :D

And Sega has FUBARed majorly these last two years. Putting each game onto one console and maybe a couple of games on two of the three consoles is a practice that most major 3rd parties abandoned for a reason. There's no justification why they should expect everyone to own all three devices, that's totally absurd. How many more copies could have JSRF, Panzer, Sonic, VF4 (or any other Sega title you can name) sold had they been multi-platform? We will never know.
 
By being 1st party, nintendo does not have to pay royalties and get royalties from other devs on its console. imagine, for only the n64, EAD alone sold 45M software, counting 10$ for each game, you get almost 500M$, which is one year benefit for Nintendo, just by not paying royalties. Add other revenues (hardware, royalties from 3rd parties), that is a reason to stay in the hardware business.

The only reason you would like to get out : if you lose tremendous money on hardware like MS and have no prospect to recover from the future (which is what MS still hope). Sega was clearly in that position.
 
What I meant is that Nintendo would be worth more (market cap) as a multi-plat dev than as a console maker, reason being that their profits would increase. Increasing the share price is all the company board really cares about of course, being that it's their job and all.

that's a misdonomer, it's difficult to describe how the share price of a company like nintendo would react. the above is the general case which I recognise.
 
Qroach:

> There's a lot of third parties that won't even bother coming out to say
> thier intentions.

Not sure what you're trying to say.

> Anyway, I just saw this posted this morning.

Why don't you post a Spong.com article while you're at it?




akira888:

I won't go into detail but being a 1. party has some significant advantages. One particular grave misconception is that sales would improve by going 3. party. There is simply no reason to believe that. Historically, sales go down once you start publishing for other platforms. Sega is a particularly good example. Massive support for three platforms yet sales are lower than they were in the DC days. And Sega is nowhere near the size of Nintendo.
 
akira888 said:
What I meant is that Nintendo would be worth more (market cap) as a multi-plat dev than as a console maker, reason being that their profits would increase. Increasing the share price is all the company board really cares about of course, being that it's their job and all. :D

why do you think microsoft chosed to make their own hardware, despite the mandatory massive investment ? why do you think sega, nintendo, sony, microsoft battle(d) so hard for the console bizness ?

like others ppl said, when you are hardware manufacturer you earn royaltie$ from 3rd parties and as a 1st/2nd party publi$hing is way more profitable. you can make money from hardware, accessories (margins on a RGB cable or a 512 kB memory card..)..

you can design the hardware that suits you the best.
you can choose which software is released on the plateform and when, so you can make room for your own software reserve the best periods for them.
and in the same way you do not depend on the good will of a hardware manufacturer.

so maybe nintendo would sell more software units going multiplateform, but they probably still wouldn't make as much money, and would loose the precious advantages owning the plateform/medium provides.
 
Qroach:

> Good for you, I was talking to you anyway.

Say what?

> Why don't you get banned for trolling?

Last I checked sensibility wasn't a bannable offense.
 
That's very true Magnum. What I see however is a fairly continual stream of developers leaving GC for either PS2 or Xbox. The question is this: Will Nintendo's increase in first-party sales justify the loss of license fees. My (lonely) guess is yes.
 
akira888 said:
That's very true Magnum. What I see however is a fairly continual stream of developers leaving GC for either PS2 or Xbox. The question is this: Will Nintendo's increase in first-party sales justify the loss of license fees. My (lonely) guess is yes.

They will not give up just because some analysts said it. it took 2 bleeding generations for Sega to drop the ball. Bleeding money is something nintendo has never experienced n any year (and they are the only one).
 
Qroach said:
You're right, otherwise you would have been banned a long time ago for lacking in that area.

And you ragged on me a while back for being confrontational...?

:rolleyes: :LOL:


*G*
 
That's very true Magnum. What I see however is a fairly continual stream of developers leaving GC for either PS2 or Xbox. The question is this: Will Nintendo's increase in first-party sales justify the loss of license fees. My (lonely) guess is yes.

I don't think anybody has really "left" the GCN for the PS2 or Xbox. They've already been doing PS2 (and had likely commited to Xbox) in the systems launched, and after releasing some titles have decided the lack of sales aren't worth the costs. Thus they're not leaving, rather just not continuing...

In anycase I don't see too it too much of a problem for Nintendo. AGB hardware and software sales would easily offset major losses on the GCN if they chose to do so, and they won't feel any pressure on that sector for at least 2 more years. Besides they've pretty much geared themselves towards not being a market share leader anyways...
 
akira, Evidence is showing the opposite happening. The GCN is finally catching on. Most everyone I know has stalled out on PS2 and/or Xbox and is finally discovering the world GCN has to offer. Also, I'll give you one guess as of which console's sales (besides GBA) are actually 'up' this year over last year. Gamecube. The other two are down.

Olhava said Nintendo may decide not to compete against the Xbox 2 and PlayStation 3, which are expected in 2005-06. "Right now the jury's out on whether they will create a next-generation system," she said.

*Bewilderment on face* Oh my goodness! That's a perfect definition of hyperbole. Nintendo may decide not to compete? Hell's bells, I may decide not to brush my teeth in the morning. Isreal and PLO may not decide to kill anyone else. WTF is she talking about? It may rain tommorrow. It may not! The jury's still out? Please someone email this lady and tell her to get off the weed. That shit will fry your brain.

EDIT: Misunderstood akira's post thought he meant players leaving Cube (my 1st paragraph)
 
No you don't. I'm not saying it won't even out (though I doubt it) but at this point, compared to the same period last year, sales are down considerably.
 
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