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How is Nintendo successful?


CastletonSnob

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9 minutes ago, CastletonSnob said:

How is Nintendo still successful when they're consistently behind the times

Because for the most part Nintendos games are timeless. Mario games dont need 8k, 1000fps with a constant on line connection for loot drops. Good art style and design will always win out.

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I think it helps that their stuff caters to all ages but really I think the main thing is it does well in markets where people grew up on Nintendo and they had tons of cash over the years to keep at it when they had failures.

 

In japan, it's because they still understand portability and handhelds are what do well and that is where they do their best. The switch allowing them to bring their console focused development to portable devices has done well but they're still selling on the same level as 3DS and not the DS or Wii peaks they had in the past (in reference to japan).

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1 minute ago, chakoo said:

In japan, it's because they still understand portability and handhelds are what do well and that is where they do their best. The switch allowing them to bring their console focused development to portable devices has done well but they're still selling on the same level as 3DS and not the DS or Wii peaks they had in the past (in reference to japan).

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The majority of the games they release are quality.  They know how to teach their old dogs new tricks.  Also, how to spread franchise releases apart to not instill fatigue.

 

Their games also tend to focus on core play mechanics ahead of skill trees and the like.  You get more instant joy in the moment to moment than a typical AAA release.  There are some exceptions, and they aren't bad either.

 

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1. They're not trying to compete with Sony and Microsoft. They're happy to exist in the niche they've carved out for themselves.

2. They (mostly) don't use the hardware as a loss leader. They make some profit on it. IIRC generally not a lot of profit, but some nonzero amount of profit. Thus it doesn't really matter whether they have a GameCube or a Wii in terms of how many units they sell because they didn't lose money, they just didn't make as much money as they could have if it had sold better. But they pretty clearly prefer erring on the side of leaving money on the table instead of risking taking big losses on a bunch of unsold inventory. You can see this from how they long they were just refusing to ramp up NES Classic and SNES Classic production despite the fact that demand was high enough to sustain 2x-3x scalping prices on those items for months (years? I've lost track of time since COVID) on end.

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14 hours ago, Jason said:

1. They're not trying to compete with Sony and Microsoft. They're happy to exist in the niche they've carved out for themselves.

2. They (mostly) don't use the hardware as a loss leader. They make some profit on it. IIRC generally not a lot of profit, but some nonzero amount of profit. Thus it doesn't really matter whether they have a GameCube or a Wii in terms of how many units they sell because they didn't lose money, they just didn't make as much money as they could have if it had sold better. But they pretty clearly prefer erring on the side of leaving money on the table instead of risking taking big losses on a bunch of unsold inventory. You can see this from how they long they were just refusing to ramp up NES Classic and SNES Classic production despite the fact that demand was high enough to sustain 2x-3x scalping prices on those items for months (years? I've lost track of time since COVID) on end.

 

Just to piggy back off of this, Nintendo isn't really looking to force themselves into huge profits. They'd rather continue with sustainable success over the ups and downs of chasing the next big thing. Their chief executives are making a fraction of their counterparts at others in the industry. They also seem like their stable group of employees over ramping up with contractors and then cutting them loose after their last big game goes gold.

 

It's worked pretty well. There really aren't that many companies that have managed sustained success and profitablity over so many years in this industry.

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