Crusters
Koopa
- Pronouns
- He/him
True, look at the Wii.There's no reason Nintendo can't have one of their consoles sell as well as their handhelds.
Unfortunately a lengthy history shows the odds on this are low like around to 10 to 1, with the losers being big losers, and only 1 winner.
This is where the concept of opportunity cost comes into play. Both making a handheld and making a console have the same R&D cost, and time cost. You can not make both of these devices with a single R&D and time expenditure, they each require their own R&D, and dedicated time.
This means, you must choose what product that R&D nest egg and time gets spent on. We have arrived at an Opportunity Cost.
So it's not about being successful, it's about being the most successful you can get with the single investment.
If 90% of Nintendo's past consoles have been sub 50 millions sellers, and all of Nintendo's past handhelds have been above 50 million, and actually more around 100 million, making a console is an unacceptable opportunity cost, as it costs a comparable investment to make either one.
Can make 2 products, potential combinations:
Potential console success 70 million.
Potential console success 70 million.
(This would be the second best selling Nintendo home console of all time)
Total: 140 million.
Potential console success 70 million.
Potential handheld success 120 million.
Total: 190 million.
Potential handheld success 120 million.
Potential handheld success 120 million.
Total: 240 million.
Making a console, even the second most successful console in Nintendo history, would simply be an unacceptable opportunity cost, as using that same time and money spent on either a handheld or a console would result in a larger return making handhelds.