Nintendo could drop out of the console market
You’ve got to question Nintendo’s motivation to remain in the console market. They have, for years, languished behind their more mature and technically advanced rivals – Playstation and Xbox. In fact, take a look at the sales figures for each console:
- Wii U – 9 million
- Xbox one – 11 million
- Playstation 4 – 18 million
That isn’t to say that 9 million isn’t a respectable number, but, it still leaves them with a way to go before they even start to make a profit. That is a very strange business model in such an industry – I mean, if a new console comes out every three or four years and you still haven’t made a profit after eighteen months, you might be in trouble.
Console sales are one of those things that are higher at launch than at any other time. The sales figures will then plateau – if they were going to cover their research and development costs, you would hope they would have done that in the initial launch phase.
This though only covers the fully fledged console market. Nintendo are actually market leaders in portable gaming and they always have been – the Gameboy, Gameboy Colour, Gameboy Advance, Nintendo DS and all their other great products have completely dominated the market with competitors like PS Vita unable to hold a flame to their rivals.
I believe that Nintendo could and should drop out of full console market and throw all their efforts at the thing they are good at – portable gaming.
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