Nintendo: NX Won't be Sold at a Loss, Will Focus Heavily on Mobile

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Nintendo: NX Won't be Sold at a Loss, Will Focus Heavily on Mobile

Tatsumi Kimishima

Nintendo president Tatsumi Kimishima says that the Wii U was sold at a loss because the yen was very strong at the time - a situation the NX won't get.

Those of you expecting Nintendo's upcoming super dooper secret NX console to be an ultra-high definition power-hungry machine that Nintendo will sell at a loss, think again! Nintendo president Tatsumi Kimishima has stated at a recent investor's call that the company's new console will not be sold at a loss like the Wii U, and is being designed around this fact.

"We are not thinking of launching the hardware at a loss," said Kimishima. "When Wii U was launched, the yen was very strong. I am assuming that situation will not repeat itself. Selling at a loss at launch would not support the business, so we are keeping that mind in developing NX."

The Wii U, which launched in November, 2012, didn't become profitable until May of 2014.

Additionally, Kimishima once again pushed Nintendo's mobile initiatives, stating "we want to grow smart device gaming as one of the pillars of Nintendo's revenue stream."

In fact, even Nintendo legend Shigeru Miyamoto has been put onto smartphone development, as Kimishima explains "Of course, Mr. Miyamoto, our Creative Fellow, is also supporting the business for smart devices from a company-wide perspective. To explain the level of engagement of Mr. Miyamoto, he is having specific talks with developers of games for smart devices on what would be desirable overall. In that sense, what you see from the outside may be markedly different from what we see on the inside."

Not sure what this means for the NX, but we can probably expect a much more conservative machine, with a lot of smartphone integration.

Source: Nintendo

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Wow, that sounds incredibly appealing.

/sarcasm

Sony and Microsoft were already selling their consoles at a loss, when they launched.

So you're telling me that this new console will not be. So it will literally have 400 dollars worth of hardware in there. No actual word on if the controller is like the Wii U and has a display, but if so, you can kiss half of the cost towards that. I thought they were trying to compete with current hardware. That, or they will hike up the price to well above 500-600 dollar range, which would be near suicide compared to the competition.

And to see the shift of focus towards mobile is depressing.Nothing says nintendo like cheap looking app titles.

So since their games aren't sacred to just consoles/gameboy's now, will they eventually expand to computer? Stay tuned to find out!

Well this whole fiasco is turning into one loveable clusterfuck of ideas.

In all seriousness Nintendo does seem to do well in the mobile market and they've got no real competition. This could be interesting but the price point issue is worrisome.

Pretty sure the WiiU was the only time Nintendo sold a console at a loss. Sony and MS pretty much do this all the time. Not sure how much that matter for Nintendo right now. Us not knowing that the hell the NX is, that's what's hurting Nintendo right now.

Calling it now: the NX is going to just be Nintendo launching it's own smartphone. :P

Steven Bogos:
The Bogos is back.

I thought you were laid off? What, did the Escapist come crawling in begging you to come back once they realized that they had literally no one to write articles for them anymore?

OT:

RJ 17:
Calling it now: the NX is going to just be Nintendo launching it's own smartphone. :P

That's almost what it sounds like, but I wonder if that is really such a bad thing. A smartphone with a heavy focus on gaming, hmmmm, might be interesting.

I'm morbidly curious as to how picture in the article was chosen. The president standing in front of the gamecube for an article talking about the NX, all it needs is a virtual boy in there too and it will be perfect.

Love it. Can't wait for them to tout how it will be as strong as an Xbone, a console from 3 years ago. Though that won't be nearly as embarrassing as when the WiiU was being proudly proclaimed as a console that is as strong as a PS3, with a 6 year difference between the two.

Wait, they sold a console in 2012 that was slightly more powerful than a 360(2005), at a fucking loss? That useless goddamn gimmick was that damn expensive. Jesus. You earned that L for that generation.

dragongit:
Sony and Microsoft were already selling their consoles at a loss, when they launched.

AzrealMaximillion:
Pretty sure the WiiU was the only time Nintendo sold a console at a loss. Sony and MS pretty much do this all the time.

PS4/Xbone were both touted to not be sold at a loss by their respective companies. After the PS3 and 360, they didn't want to lose money for 5 years. (Mainly applies to the PS3.)

Drathnoxis:
A smartphone with a heavy focus on gaming, hmmmm, might be interesting.

Smartphone batteries are crap, and if you just leave it plugged in to the charger at all times, what's the point of making it mobile?

If you are in a country with excellent Internet and wi-fi (oh I don't know, Japan for example?), then a "mobile" console that relies on Internet connectivity isn't a bad thing. But if your console is only as fast as the slowest Internet connection, then Nintendo have lost the next Console War before it has even started.

008Zulu:

Drathnoxis:
A smartphone with a heavy focus on gaming, hmmmm, might be interesting.

Smartphone batteries are crap, and if you just leave it plugged in to the charger at all times, what's the point of making it mobile?

If you are in a country with excellent Internet and wi-fi (oh I don't know, Japan for example?), then a "mobile" console that relies on Internet connectivity isn't a bad thing. But if your console is only as fast as the slowest Internet connection, then Nintendo have lost the next Console War before it has even started.

The reason smartphone batteries drain so quickly is because the manufacturers prioritize thinness over battery life. I'd imagine a dedicated gaming phone from a company like Nintendo would be a little chunkier to accommodate things like face buttons, which would also leave room for a bigger battery and longer battery life.

Aaaaww maaaan!!!
I am no big fan of smartphones, the only app I use is whatsapp, I might go check my Facebook if I haven't been able to get on a Computer for a few days but that's about it... And that the next console of Nintendos' is supposed to be heavily phonebased. sigh...
Seems like I have to start catching up with time and become like all my friends who use all the apps possible and update some sort of social media on a daily basis :O
Well, we'll see what it turns out to be in the future.

Nintendo software is perfect for a smart phone. Mario style platformers would probably fit quite well. It doesn't hurt that Nintendo games have that bright pleasant look that apps tend to go for, and that they appeal to children. Nintendo has typically done pretty well with the casual market, and their love of gimmicks could suit them here. They also have more experiance with handhelds then anyone else.

The Nintendo faithful will probably feel like the Band of the Hawk, but since when did Nintendo care about them? They're just stepping stones toward Nintendo's bright, money filled castle, and they'll need many more bodies to reach the top.

MC1980:
Love it. Can't wait for them to tout how it will be as strong as an Xbone, a console from 3 years ago. Though that won't be nearly as embarrassing as when the WiiU was being proudly proclaimed as a console that is as strong as a PS3, with a 6 year difference between the two.

The dreamcast was proudly stronger then a PS1, and we all know how that turned out.

Would it kill Tatsumi Kimishima to smile a little in pictures? Dude looks like he's just been told his pet iguana has died.

Owyn_Merrilin:
The reason smartphone batteries drain so quickly is because the manufacturers prioritize thinness over battery life. I'd imagine a dedicated gaming phone from a company like Nintendo would be a little chunkier to accommodate things like face buttons, which would also leave room for a bigger battery and longer battery life.

I would like to take you on a journey, back in to to the year 2002, and Nokia's N-Gage phone/gaming handheld hybrid.

008Zulu:

Owyn_Merrilin:
The reason smartphone batteries drain so quickly is because the manufacturers prioritize thinness over battery life. I'd imagine a dedicated gaming phone from a company like Nintendo would be a little chunkier to accommodate things like face buttons, which would also leave room for a bigger battery and longer battery life.

I would like to take you on a journey, back in to to the year 2002, and Nokia's Ngage smartphone/gaming handheld hybrid.

that thing was just flat poorly designed, couldn't hot-swap games, portrait screen orientation and phone style keypad where face buttons should have been, no sane designer would try something like that again (one can only hope)

If Nintendo came out with a game oriented smart phone? I'd probably get it. At least after my current smart phone breaks, anyway. If it isn't too much more expensive than other smart phones and I can use it like any other smart phone regardless of whether or not I have any games for it then why the hell WOULDN'T I get one?

This could actually be a smart move on Nintendo's part if done right.

Assuming, of course, that it is indeed a gaming smart phone. And that they do, of course, do it right.

MC1980:

PS4/Xbone were both touted to not be sold at a loss by their respective companies. After the PS3 and 360, they didn't want to lose money for 5 years. (Mainly applies to the PS3.)

Not entirely true, both the Xbox One and PS4 initially did sold under a loss. The big news was that the PS4 loss was mitigated with either one yearly online subscription or one additional game. This was much better when you compare it to say last generation where multiple games were required to turn the loss into a gain. Of course, within a year production costs for the units decreased so even with the price cut, those two consoles now sell at a gain, even with the price cut so you are right.

Also, I could be remembering this wrong, but didn't the Kinnect 2.0 give the Xbone a larger loss lead?

CrimsonBlack:
Would it kill Tatsumi Kimishima to smile a little in pictures? Dude looks like he's just been told his pet iguana has died.

Rednog:
I'm morbidly curious as to how picture in the article was chosen. The president standing in front of the gamecube for an article talking about the NX, all it needs is a virtual boy in there too and it will be perfect.

What's weird is that there are photo's of him smiling like this one:

image

Then again, he doesn't really have a Nintendo-like smile so maybe that's why? Also probably because he's staring into your soul.

OT: It kind of sounds like more they're planning on having the NX have a profit than confirming it have a profit. Also, who in their right mind is thinking Nintendo would sell their console at a loss? Nintendo, while diversifying, is still primary a console manufacturer. They currently don't have the infrastructure to profit in other division in significant ways to combat such a strategy like Sony or Microsoft can. I mean, look at there current projections for the year. It's low and their belief that the Wii U will only sell 800,000 units worldwide has a lot to do with it.

As for mobile, I've accepted that they're going to be doing mobile. I am going to be amused however when everyone realizes that Nintendo has no plans on replacing their handheld devices with mobile gaming, rather planning on using mobile gaming as an extension to their platforms. Well, more on another site anyways.

xaszatm:

MC1980:

PS4/Xbone were both touted to not be sold at a loss by their respective companies. After the PS3 and 360, they didn't want to lose money for 5 years. (Mainly applies to the PS3.)

Not entirely true, both the Xbox One and PS4 initially did sold under a loss. The big news was that the PS4 loss was mitigated with either one yearly online subscription or one additional game. This was much better when you compare it to say last generation where multiple games were required to turn the loss into a gain. Of course, within a year production costs for the units decreased so even with the price cut, those two consoles now sell at a gain, even with the price cut so you are right.

Also, I could be remembering this wrong, but didn't the Kinnect 2.0 give the Xbone a larger loss lead?

You know what, now that I think about it, I probably conflated 'not selling at a loss' with 'production cost lower than store price'. In which case, yes both of those would have sold at a loss, as their production cost per unit was only slightly lower than their US retail price. My bad.

Nintendo please.
Just stop.

Drathnoxis:

Steven Bogos:
The Bogos is back.

I thought you were laid off? What, did the Escapist come crawling in begging you to come back once they realized that they had literally no one to write articles for them anymore?

OT:

RJ 17:
Calling it now: the NX is going to just be Nintendo launching it's own smartphone. :P

That's almost what it sounds like, but I wonder if that is really such a bad thing. A smartphone with a heavy focus on gaming, hmmmm, might be interesting.

Oh the fickle life of a contractor ;)

Greate, mobile market... Maybe Nintendo will be successful there so it will be flooded by games that aren't based entirely around timers. You know maybe games that are trying to be good.

Fucking new it. All this demise of the Wii U is bullshit. All evidence has pointed to this being either a Nintendo Phone, or something like an Ouya. Ya know, I was hoping that Mr.Businessman president wouldn't be such a negative influence on the company, but doesn't seem the case. Even got Miyamoto down in the pits. One thing I loved about Nintendo was that unlike Xbox and PlayStation, it was run by developers. Iwata and Miyamoto both actually made great games, but now Nintendo is falling into the same problems as Microsoft and Sony.

I hope the NX fails miserably, then this guy gets fired (or resigned I guess, since I don't think anyone actually can fire him), and Nintendo goes back to being a gaming company.

dragongit:
Sony and Microsoft were already selling their consoles at a loss, when they launched.

So you're telling me that this new console will not be. So it will literally have 400 dollars worth of hardware in there. No actual word on if the controller is like the Wii U and has a display, but if so, you can kiss half of the cost towards that. I thought they were trying to compete with current hardware. That, or they will hike up the price to well above 500-600 dollar range, which would be near suicide compared to the competition.

And to see the shift of focus towards mobile is depressing. Nothing says nintendo like cheap looking app titles.

The PS4 wasn't sold at a loss it cost $381 per console when it was released so it was sold at cost. Since then the manufacturing cost has gone down. If Nintendo wants the NX to be even in performance with the PS4 then selling at a profit for $300 should be easy by March next year.

008Zulu:

Owyn_Merrilin:
The reason smartphone batteries drain so quickly is because the manufacturers prioritize thinness over battery life. I'd imagine a dedicated gaming phone from a company like Nintendo would be a little chunkier to accommodate things like face buttons, which would also leave room for a bigger battery and longer battery life.

I would like to take you on a journey, back in to to the year 2002, and Nokia's N-Gage phone/gaming handheld hybrid.

You're missing the point.
The original N-Gage was roughly as powerful as a GameBoy Advance, with a smaller screen. It also only did a maximum of two things at a time: check for phone calls and play games.
The GBA famously runs on two AA batteries, the N-Gage needed a larger battery than that.

Today's smartphones have barely anything in common with the phones of the past and comparing them is incredibly stupid. Today's smartphones run on power hungry processors, quadcore processors are the standard these days. They have powerful graphics processors, and run with the help of actual and complex operation systems, while they sit in your pocket they check for phone calls, text messages, internet connection, GPS (if you have that activated), messages for any of your messaging apps, updates to any of the software on your phone. On top of that the screens are larger, have a much higher resolution (720p,1080p,2K and now even 4K), all of that requires processing power and energy.
And since phone matufacturers care more about thiness than battery life, they fit their phones these days with undersized batteries just to save on space and weight. Comparing the N-Gage's battery life to today's phones and claim that today's phone batteries are crap, like saying that today's game developers are crap because they need more time, effort and money to produce games than Atari did in the late 70s.

"Focus Heavily on Mobile"

Well I just lost all interest. I already have a Mobile phone Nintendo. I don't need another one.

Owyn_Merrilin:

008Zulu:

Drathnoxis:
A smartphone with a heavy focus on gaming, hmmmm, might be interesting.

Smartphone batteries are crap, and if you just leave it plugged in to the charger at all times, what's the point of making it mobile?

If you are in a country with excellent Internet and wi-fi (oh I don't know, Japan for example?), then a "mobile" console that relies on Internet connectivity isn't a bad thing. But if your console is only as fast as the slowest Internet connection, then Nintendo have lost the next Console War before it has even started.

The reason smartphone batteries drain so quickly is because the manufacturers prioritize thinness over battery life. I'd imagine a dedicated gaming phone from a company like Nintendo would be a little chunkier to accommodate things like face buttons, which would also leave room for a bigger battery and longer battery life.

Thinness is a part of the problem there but not the whole problem. It's also down to the ever increasing pixel densities and the like and battery tech not being as heavily invested in by the industry because it's a much weaker selling point.

OT: Yay I can strike it off my watch list :D

Great, focus on mobile from a Japanese design perspective, and Nintendo policy of opposing sales and maintaining high prices so that they don't devalue their products will work great. I can't wait for a new mobile device with a tenth of the features, barely any worldwide support, and ten times the price of software.

I went from curious and slightly hyped for the NX to officially thinking Nintendo should just go third party.

The title is misleading.
He says the NX won't be sold at a loss and that Nintendo wants smart devices to be one of their pillars of profit.
Not that the NX will focus heavily on mobile like the title suggests. He didn't really say anything that might imply the NX will focus heavily on mobile.
Also that in itself is misleading. It will be ONE of the pillars of profit. Saying it like they will heavily focus on mobile kinda implied they will focus less on handheld and console gaming, which again does seem to be the case.

All in all, I'm waiting to see more of the device to make a call. But in the end, it all comes down to games. If it has the games I like, I might get it. I ordered a Wii U, but then the order was canceled for some reason and I didn't bother ordering it again so I still have the money for it. I will just skip it and maybe get an NX or save more to get a freaking working PC instead of this piece of shit use right now.

All that being said, I'm not sure Nintendo will make it in mobile gaming. Japan's, hell the world's mobile game design philosophy is to make cheap free games with premium currency to gate the "good" content. Nintendo's game design philosophy so far has be to make great games that focus purely on gameplay and have a premium price on it. They do work with the Japanese company that's successful in mobile gaming, but I'm still not sure. Nintendo despite all the idiocy they do, they still keep their IPs in rather high regards. I don't expect them to go full EA's Dungeon Master, but even most of the successful mobile games clash with Nintendo's design philosophy.
Eh, I will wait and see. I don't mind paying for a good mobile game so I hope they don't go whaling with the not so free "free" games.

Saelune:
Fucking new it. All this demise of the Wii U is bullshit. All evidence has pointed to this being either a Nintendo Phone, or something like an Ouya. Ya know, I was hoping that Mr.Businessman president wouldn't be such a negative influence on the company, but doesn't seem the case. Even got Miyamoto down in the pits. One thing I loved about Nintendo was that unlike Xbox and PlayStation, it was run by developers. Iwata and Miyamoto both actually made great games, but now Nintendo is falling into the same problems as Microsoft and Sony.

I hope the NX fails miserably, then this guy gets fired (or resigned I guess, since I don't think anyone actually can fire him), and Nintendo goes back to being a gaming company.

Except that's not what the source actually says. The source is an FAQ page where the first question addresses what the details of the NX are and how it will not sell at a loss. The second question addresses the mobile stuff. So the idea that the NX is going to have smartphone integration or is a smartphone is a load of crap.

At the very least the first question makes it clear Nintendo is not looking to go power-based, as has been their MO for awhile. Trying to go brute force is more trouble than it's worth.

Aiddon:

Saelune:
Fucking new it. All this demise of the Wii U is bullshit. All evidence has pointed to this being either a Nintendo Phone, or something like an Ouya. Ya know, I was hoping that Mr.Businessman president wouldn't be such a negative influence on the company, but doesn't seem the case. Even got Miyamoto down in the pits. One thing I loved about Nintendo was that unlike Xbox and PlayStation, it was run by developers. Iwata and Miyamoto both actually made great games, but now Nintendo is falling into the same problems as Microsoft and Sony.

I hope the NX fails miserably, then this guy gets fired (or resigned I guess, since I don't think anyone actually can fire him), and Nintendo goes back to being a gaming company.

Except that's not what the source actually says. The source is an FAQ page where the first question addresses what the details of the NX are and how it will not sell at a loss. The second question addresses the mobile stuff. So the idea that the NX is going to have smartphone integration or is a smartphone is a load of crap.

At the very least the first question makes it clear Nintendo is not looking to go power-based, as has been their MO for awhile. Trying to go brute force is more trouble than it's worth.

Certainly makes more sense than what a lot of other people have been speculating. Not saying I cant be wrong, but Nintendo has been going on and on about mobile, and they are making a new...something. While a lot feel the Wii U came out too soon after the Wii, I doubt they will do that again with this replacing the Wii U, which I am pretty sure isn't the case.

Plus they kept saying they weren't working on a Majora's Mask for the 3DS but then it turns out they were working on it the second OoT 3D came out, so who knows what to believe with them. Bit of a random side tangent, but still.

Kajin:
If Nintendo came out with a game oriented smart phone? I'd probably get it. At least after my current smart phone breaks, anyway. If it isn't too much more expensive than other smart phones and I can use it like any other smart phone regardless of whether or not I have any games for it then why the hell WOULDN'T I get one?

This could actually be a smart move on Nintendo's part if done right.

Assuming, of course, that it is indeed a gaming smart phone. And that they do, of course, do it right.

Maybe I'm missing something because phones aren't really my area of knowledge, but wouldn't a "game-oriented smartphone" basically just be a 3DS/Vita with a different interface and a built-in call feature? Outside of calling/texting, between the two of those handhelds they already offer pretty much the same functionality as any smartphone. I mean, I guess it'd play mobile games rather than handheld games (tangent: aside from the fact that the two groups tend to involve, or at least historically played very different styles of games, I've never understood why "handheld" is distinctly not "mobile". Just a bit of a pedantic point) but otherwise surely it would basically just be another "console", just in phone form?

I only bring this up because I feel like having the form factor of a handheld console limits the effectiveness of something being used as a phone, while having that of a phone would limit the usefulness of something as a console. Also, the respective batteries of the 3DS and Vita are both pretty trash (I'm given to understand that Nintendo has improved the 3DS' somewhat with all of the revisions they've done, but still).

If I used my phone more, I'd probably see the use of something like that I suppose.

Is there something happening in Japan where mobile gaming is rising and console gaming is fallen?

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