official: GameCube drops to $99
#51
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From: Portland, OR
Perhaps I am the only one who thinks that the "Nintendo will make more money as a software only publisher" theory is very shortsighted.
Some quick thoughts from a financial perspective:
The good:
1)Lower tech support expenses
2)No R&D costs for new hardware
3)Higher overall game sales
The bad:
1)Can no longer rake in the $$$ from accessories: controllers, mem cards, nintedo power, gc to gba cables, game boy players, replacement parts, broadband adapters, etc...
2)Make less money on each game sold due to licensing fees.
3)Make NO money from licensing fees from 3rd party publishers.
Obviously I'm ignoring any philosophical reasons for Ninteddo wanting to stay in the hardware business. I'm sure there are tons of other points to be made for both sides of the financial argument which I haven't touched. I just listed the 3 things that came to my mind.
I believe that you'd have to see a significant increase in sales as a 3rd party publisher to make up for all of the lost revenue from hardware sales and 3rd party licensing fees, especially since you are making less money per game sold as a 3rd party publisher due to said fees. With all of the "gamecube is too kiddy for me" crowd out there, you'd be hard pressed to convince me that Nintendo would see a significant increase in game sales as a third party.
Edit: ripped from a Chicago Tribune article about the GC price drop:
Jeff Brown, the president of corporate communications at Electronic Arts--the world's largest independent game publisher--said his company has "16 to 17 games in development for the GameCube.
"It's like network television," Brown said. "Boy, you would be a dope to get out of the business just because you came in third. It's like asking if ABC should get out of broadcasting. You can come in third and still make a handsome profit."
Funny, not because it makes my point, but also because I hate ABC with a passion with the exception of Alias. I would not shed a tear if ABC left broadcasting tomorrow. Might even throw a little party.
Some quick thoughts from a financial perspective:
The good:
1)Lower tech support expenses
2)No R&D costs for new hardware
3)Higher overall game sales
The bad:
1)Can no longer rake in the $$$ from accessories: controllers, mem cards, nintedo power, gc to gba cables, game boy players, replacement parts, broadband adapters, etc...
2)Make less money on each game sold due to licensing fees.
3)Make NO money from licensing fees from 3rd party publishers.
Obviously I'm ignoring any philosophical reasons for Ninteddo wanting to stay in the hardware business. I'm sure there are tons of other points to be made for both sides of the financial argument which I haven't touched. I just listed the 3 things that came to my mind.
I believe that you'd have to see a significant increase in sales as a 3rd party publisher to make up for all of the lost revenue from hardware sales and 3rd party licensing fees, especially since you are making less money per game sold as a 3rd party publisher due to said fees. With all of the "gamecube is too kiddy for me" crowd out there, you'd be hard pressed to convince me that Nintendo would see a significant increase in game sales as a third party.
Edit: ripped from a Chicago Tribune article about the GC price drop:
Jeff Brown, the president of corporate communications at Electronic Arts--the world's largest independent game publisher--said his company has "16 to 17 games in development for the GameCube.
"It's like network television," Brown said. "Boy, you would be a dope to get out of the business just because you came in third. It's like asking if ABC should get out of broadcasting. You can come in third and still make a handsome profit."
Funny, not because it makes my point, but also because I hate ABC with a passion with the exception of Alias. I would not shed a tear if ABC left broadcasting tomorrow. Might even throw a little party.
Last edited by rayw69; 09-24-03 at 03:09 PM.
#52
Retired
Originally posted by s}{ammer
Anyway, my question is this. Why do Nintendo suporters get so pissy when someone suggest Nintendo go 3rd party?
Anyway, my question is this. Why do Nintendo suporters get so pissy when someone suggest Nintendo go 3rd party?

To recap.
1. Nintendo is the only company to retain a gaming only philosophy, while MS and Sony are hell bent on Set top boxes. This means they'll like cost more than Nintendo's next system, especially given that the GC was $100 less than the PS2 and X-box this generation.
2. I like nintendo's controllers the best.
3. Third party games usually (with exceptions obvioiusly) aren't as good as first party or second party games (or third party one-system exclusives) due to the games usually being based around the best selling system and then hastily ported to the competition.
As I said above, I don't want to see Nintendo go 3rd party, but I wouldn't mind if they partnered with Sony or MS (and only made games for that system) as long as there was a cheaper gaming only alternative to the set-top box, and Nintendo was allowed input in designing the controllers.
#53
DVD Talk Legend
Originally posted by darkside
Yeah, and you only need a PC to enjoy it.
Yeah, and you only need a PC to enjoy it.
Originally posted by darkside
We had all better hope that two of the three survive as console makers though. If only one company is making the consoles you can bet the hardware and software is going to be pretty damn expensive. After dealing with the bad hardware Sony has released as a console maker I would much rather see Microsoft and Nintendo continue making consoles and Sony leave the market, but thats just me.
We had all better hope that two of the three survive as console makers though. If only one company is making the consoles you can bet the hardware and software is going to be pretty damn expensive. After dealing with the bad hardware Sony has released as a console maker I would much rather see Microsoft and Nintendo continue making consoles and Sony leave the market, but thats just me.
#54
Retired
Originally posted by Trigger
Someone's got to go to make room for Samsung... they want to enter the console market, but they're waiting for the right moment to strike.
Someone's got to go to make room for Samsung... they want to enter the console market, but they're waiting for the right moment to strike.
It would help nintendo by getting someone else to build the hardware as well having a lot more investor $ to work with.
It would help Samsung by instantly giving them several system-seller type franchises.
#55
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Originally posted by rayw69
Funny, not because it makes my point, but also because I hate ABC with a passion with the exception of Alias.
Funny, not because it makes my point, but also because I hate ABC with a passion with the exception of Alias.
And why did Acclaim have to cancel Alias for the 'Cube?!!
#56
Retired
Originally posted by rawer
And why did Acclaim have to cancel Alias for the 'Cube?!!
And why did Acclaim have to cancel Alias for the 'Cube?!!
Probably not much of a loss anyway:
1. 99.9% of Acclaims games suck.
2. 99.9% of TV and/or movie licensed games suck.
#57
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Joined: Nov 1999
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From: Back in the 802, missing NYC
i anticipate that many a cube will be under xmas trees this year, especially if bundled with mario kart or zelda.
i love my cube, i don't play a ton of games, but the nintendo games are always my favorite (sans GTA of course
)
i love my cube, i don't play a ton of games, but the nintendo games are always my favorite (sans GTA of course
)
#58
Suspended
I really hope Nintendo dosn't get out of the hardware business. I have also found Nintendo systems to be the best made (except the original NES, why of why didn't they copy the Famicom design first), and the controllers to be some of my favorites.
Well, only time will tell. However, Im sure this christmas with Cube priced at $100, and GBA SP's at $100, there will be tons under the christmas tree.
Well, only time will tell. However, Im sure this christmas with Cube priced at $100, and GBA SP's at $100, there will be tons under the christmas tree.
#59
Originally posted by GizmoDVD
Well, only time will tell. However, Im sure this christmas with Cube priced at $100, and GBA SP's at $100, there will be tons under the christmas tree.
Well, only time will tell. However, Im sure this christmas with Cube priced at $100, and GBA SP's at $100, there will be tons under the christmas tree.
#61
Originally posted by dolphinboy
So you don't think that I'll get one under my Hannukah bush?
So you don't think that I'll get one under my Hannukah bush?
#65
DVD Talk Legend
Originally posted by PixyJunket
He's posted at least 3 so far this morning, and then he claims the posters on this borad are bad.
He's posted at least 3 so far this morning, and then he claims the posters on this borad are bad.




