Switch has been selling for profit since day 1 if I’m not wrong.
Not a surprise tbh. The nintendo switch has the specs of a low end android phone. The biggest cost of producing the Switch was probably the R&D.
yes, with years passed, parts and making of consoles became cheaper but the price of hardware is not down still at 299. so that more extra profit
Sony don’t sell their hardware with a loss like in PS2 or PS3 times. This is over. Maybe (not maybe, lol) Nintendo has better margins on hardware but as i said: Sony takes 30% on every Fortnite, CoD, FIFA, Madden microtransation and they have almost 50 million PS+ subscribers. This is pure profit without any big investment and tells me the rest of Playstation business is even below the 10% margin. They have to fix this.
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Sony did sell PS4 and PS5 at loss for few months before it was profitable for them.
Comparing an other company to Nintendo is a futile effort. That company can continue to exist in its own reality and decide whatever the fuck they want for themselves and have it work out great. Like you really think MS or Sony doesn’t wish their games had the kind of attach rate Nintendo’s games do? Almost half the userbase of Switch has Mario Kart. The game’s sold as many millions of copies as its attach rate lmfao. Let that sink in.
This is why you’ll probably never ever see a Nintendo game on PC, no matter what. Sony had to concede after all this time. Nintendo won’t. They have found their footing and will not vane down.
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Any other company behaving like Nintendo would bankrupt in less than 1 year.
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they need to maintain that PS Plus/PS Now servers not to forget, they don’t their own Big servers, they switched to Azure back in 2019 from amazon which is improvement cause amazon is more expensive
You also have to consider that maintaining studios costs a lot of money.
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Sony spends 100s of millions on their first party games, and spend insane amounts on R&D to keep up with standards and create their own, all while running some of the biggest and most prestigious studios in some of the most expensive locations in the world.
I can’t think of a single Nintendo game or Studio that does or requires any of the above.
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Nobody uses PS Now. Thats not a huge cost driver.
Ok. So what will happen if games get even more expensive? Or if they don’t outsell their main competitor 2:1? Sony don’t make any money? Thats not a sustainable business model.
Look at Capcom, they also make expensive ass games. And they have a 40% profit margin.
There is a reason that all their new studios are working on live service games.
fr i didn’t know Bandai Namco team made SSB until yesterday lol
Bamco makes a lot of games for Nintendo. They made Pokken as well. They made the new Pokemon Snap as well.
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time to buy Bamco to make our SSB clone
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I see some of you have found out that Nintendo ensures that every part of their business generates a profit, hence why their profit margins are insane for a company that is not 100% software and services.
Back in the Wii days Nintendo was the most profitable company in the world on a per employee basis.
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merchs are also strong driven by mario world and zelda
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They also have this underrated franchise that makes the most money from merch. Pokemon or sumn its called. 
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They don’t own it fully like the other that why I didn’t mention it