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Reggie says that profitability comes from software in this industry

Friday, 11th December 2009 14:52 GMT By Stephany Nunneley

reggie

NOA’s Reggie Fils-Aime has said that despite the decline in hardware sales for this year, software will prove to be huge this year and in 2010.

“The record year of 2008 is very difficult to overlap. I look at our performance and see it’s right on track with where we believed it would be,” Fils-Aime told Bloomberg. “Our read on the consumer is very strong. What we are seeing today is a strong momentum for hardware and software.

“Profitability in this industry is in software. The software peak in this industry should be this year and next year. This industry is cyclical in that a system’s sales peak in the third calendar year. The fact that we’ve seen a decline year on year is standard.”

Truly, 2008 was a banner year, and while it will be hard to top that in terms of sales – all those great games pushed into 2010 may just come close to doing it.

Thanks, GoNintendo.

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8 Comments

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  1. Psychotext

    Psychotext says “Duh”.

    #1 5 years ago
  2. onlineatron

    Onlineatron says “Like you aren’t making a ton on your cheap ass dated hardware anyway”

    #2 5 years ago
  3. Hunam

    Hunam says “They better start supporting 3rd parties better then”.

    #3 5 years ago
  4. Eregol

    Wasn’t that the way Sony did it last gen?
    Reggie really has been slow to wake up to this fact right?
    But as online says, Ninty make a fair amount in profit on each Wii.
    Not too sure about their handhelds.

    #4 5 years ago
  5. Psychotext

    Nintendo made more money than Sony (gaming division) last gen Eregol… so I’d wager they’re probably more interested in continuing whatever methods they’ve been using so far. ;)

    #5 5 years ago
  6. Eregol

    Really?
    Wow.
    Obviously none of their budget goes on new formats or anything.
    Then again Sony tried (and failed) with the UMD. I still think they’re right to use Blu-ray. DVD isn’t really good enough for games these days. It’s like the Dreamcast which continued to use CDs while PS2 went to DVDs and the N64 which stayed with cartridges while PS1 went to CDs.
    Ninty seem to wait for others to make the jump first, find the new formats and then jump over when all the real R&D has been done.
    Unless you’re talking cartridges of course. I reckon Nintendo still curse the day someone allowed you to put data on disks. They used to make a mint through cartridge licensing.

    #6 5 years ago
  7. Hunam

    Doesn’t the Wii use a DVD hybrid technology that is but isn’t a DVD?

    #7 5 years ago
  8. alimokrane

    OH Nintendo, nintendo…. but 3rd party developed games arent selling on your system. All you’re doing is bumping your attach ratios with Wii Sports and the only games that sell well are your own developed stuff…. The platform will soon be abondoned by 3rd parties. 360/PS3 is where software sells.

    #8 5 years ago