Why Nintendo As A Company Is So Different From PlayStation And Xbox
One of the main things that set Nintendo is its low-cost hardware and the fact that the company produces most of its components.
There are many gaming consoles out there to choose from. Typically people will choose one gaming console to purchase all their games for. Many are choosing Nintendo for its portability and games.
The video game industry has grown exponentially in recent years, with revenues surpassing many other industries! With millions of gamers around the world, it is no surprise that companies such as Nintendo, Sony, and Microsoft have become major players in the market. Each of these companies offers unique gaming experiences and hardware, but what sets Nintendo apart from its competitors?
The Wall Street Journal explained how Nintendo launched one its biggest successors, the Game Boy, in 1989. Even back then, Ninetendo was futuristic with its handheld and easily transportable mobility. Micheal Pachter, game analyst, tells the Wall Street Journal that Nintendo is partially credited with the invention in the console considering they were third or fourth to do it.
Nintendo has a $46 billion empire. It is different from its competitors Playstation and Xbox. One of the main reasons is its low-cost hardware, assuming because they are so portable.
The Wall Street Journal claims that Microsoft’s Xbox makes no profit on its hardware. Microsoft’s gaming CEO says that no profit is made when a Xbox is purchased. They are expected to be subsidized for between $100 to $200 through accessory sales and storefront.
Sony’s Playstation 5 is in a similar position. They make most of their money from add-on contents and live services. In fact, Sony recently just started making profit on their Playstation 5 says Wall Street Journal.
Nintendo on the other hand is much more profitable, says Micheal Pachter, game analyst. He describes how technology is usually five to six years behind. However, Nintendo utilizes this to produce lower-cost hardware sales resulting in them dominating the handheld console market.
According to Polygon, the Nintendo Switch is the highest selling handheld console of all time. It also is the third-best out of all consoles in history. It is second only to the PlayStation I and II from Sony.
Moreover, Nintendo is known for taking risks with its hardware designs. Their Wii’s motion controls and the Switch’s hybrid design are prime examples. Specifically the Wii, PopularMechanics claims helped pioneer and popularize motion control games.
Nintendo’s unique gameplay experiences and family-friendly focus have continued to attract loyal fanbases. This is no surprise considering two of the three highest profiting game franchises in history are Nintendo’s according to AppTrigger. Both intellectual properties of Super Mario and Pokémon are household names internationally.
While Nintendo has focused on creating accessible games and consoles, Sony and Microsoft have focused more on targeting hardcore gamers. Microsoft has been growing its subscription services such as Xbox Game Pass. This highlights Nintendo’s high profitability on hardware compared to competitors who are choosing other tactics to generate revenue.
Nintendo is known for tightly controlling its supply chain to ensure quality and mitigate shortages. It produces many of its own components. Sony, on the other hand, outsources manufacturing to third-party companies which has led to shortages in production for the PS5 during initial release, according to Bloomberg.
Nintendo, Sony and Microsoft are titans in the gaming industry. Regardless of whichever company’s products you lean toward, all three offer unique experiences. One thing is for sure though, Mario and his friends at Nintendo aren’t going anywhere soon.
