See, this thinking inherently suggests that because it's a small percentage of revenue, they can afford to spend it regardless of return because it's a small percentage
Not “afford” in terms of money, but “afford” in terms of risk/reward.
Their R&D spending/revenue ratio leading to the Drake revision is half of what it was leading to the Mariko revision.
They are essentially risking less with their R&D of the power upgrade than they have been in the past, with the promise of greater reward.
And it’s not “spending regardless of return”, dunno where you got that. I think it’s pretty much accepted that mid gen upgrades increase latter lifecycle engagement. It’s guaranteed to pay dividends. There are millions of people who will buy a bunch of Switch games 2022-2026 because of this new power upgrade than they would have if they were still playing on Mariko machines during that time.
I don’t think this is up for debate, tbh.
but I can tell you with absolute certainty that Nintendo doesn't think this way, because they have first-hand experience with revenue being a moving target, something that can shrink drastically in a matter of a year, as you yourself acknowledge.
Yep, and Nintendo absolutely believes a powerful mid gen upgrade will keep revenue flowing more than if it didn’t exist. There are multiple occasions where Furukawa has said as much, I’ve referenced a few of them in my previous posts.
They’ve literally addressed their R&D spending and saying they are exploring cutting edge tech…because they feel it’s the way to extending the Switch lifespan and avoiding past mistakes of letting engagement drop.
Hell, most corporations don't operate this way. Project expenses aren't weighed against current revenues, they're weighed against the revenues and profits that project is projected to generate. Every dollar spent is a risk taken to make money, so for every dollar spent, they want that dollar back and more; anything else would be considered profit loss. A 10 billion yen R&D spending increase is still a 10 billion yen spending increase, regardless of how that's represented as a percentage of revenue. It's not more or less conservative based on what they raked in for the year. The only thing in question is whether those costs are properly returned with an appropriate increase to profits. And spending on what qualifies as next generation hybrid hardware development for iterative successor sales figures? That ain't wise spending.
Eh, you are overthinking all of this. Nintendo is being more conservative in their R&D spending the past couple of years than they have the previous 10 years.
That’s all that needs to be said on this.
This is opposing the idea that they are risking a lot of R&D spending for Drake, they aren’t. You can’t rationalize that they are taking great and unusual risks here.
And again, you are severely underestimating what a mid gen power upgrade does to latter lifecycle engagement. This investment will pay itself back multiple times over in later life software/NSO buys by enthusiasts who would have drawn away.
To the last part that I bolded, though, you think that a brand-new custom SoC costs less money to design
No
and/or provides a larger return on investment than a simple die shrink to a fully pre-designed SoC
Yes
that reduced manufacturing costs of every Switch sold since July of 2019 (which is over half of all Switches sold and climbing)?
I don’t believe Mariko reduced costs compared to the 2017 TX1 models. What’s the evidence that this reduced costs?
You think Mariko was a comparative waste of money?
Of course not. Why would you ask this??
You must expect this iterative revision you imagine exists to double annual Switch sales figures for this to be taken seriously, because I couldn't stop laughing when I read that. I've tried writing this reply a few times now and had to stop each time because I'd start laughing again.
I have no idea what you are talking about. You must have misinterpreted something I said.
I imagine this mid gen upgrade model to increase software sales and NSO engagement the next few years, by a lot, than if it didn’t exist. That’s it. It only needs to sell around Lite numbers (or ps4 pro numbers if you prefer) to accomplish this.
I have no idea what you are going on about with this part of your post.
Nvidia has been more than OK to still be making Maxwell architecture chips through to 2023 (or 2027 as you suggest, if we're to believe that this is an iterative revision released alongside current Switch models to elongate its hardware cycle). That'd be 8 (or 12, again as you suggest) years from when the Tegra X1 was first commercially used.
Why wouldn’t they be ok continuing to manufacture basic Switch SoC’s? This is what you do when you make consoles. AMD made a revision in 2016 for ps4, and then happily made that for another 4-6 years. Nvidia expects this kind of thing.
But NOW suddenly they're going to take issue with making chips on old architectures for another 4 years until you believe a true successor will happen? C'mon now, that ship has long since sailed.
?
If this is going to be fashioned as the cutting edge mobile gaming tech, Nvidia will be invested in making sure it’s the best example of this that they can provide.
This shouldn’t be hard to understand. It makes sense.
We’re talking about hardware to render Switch games in 4K and you bring up… a PS4/PS5/PC exclusive? Huh? What a red herring you decided to throw into the conversation.
Yea you and I definitely aren’t on the same page.
I used a 2019 game that we have lowest end DLSS gpu performance for (rtx 2060)
That’s it.
When we talk about how a portable DLSS gaming machine in 2022 can function, see how it runs a 2019 game shouldn’t be a crazy thing to compare.
People were trying to tell me 1536 CUDA cores was “grotesque overkill” for a DLSS gpu.
I am telling them that 1920 CUDA gpu using DLSS can barely achieve 4K/60fps in performance mode. (Forget about quality mode)
What we know from Drake isn’t overkill to DLSS a game to 4K/60fps in docked mode.
How about we look into what’s required to achieve upscaling with Switch games themselves, hmm?
Xenoblade 2 on PC via Yuzu in double its native resolution with minimal to no visual glitches only needs… a GTX 1050 Ti, a budget Pascal GPU (read: pre-DLSS). Most of the videos and info I'm reading say, for ideal performance at UHD 4K and 60fps, a mid-range Turing GPU is able to tackle that pretty handily for the games I was looking at (and a Turing GPU-based SoC is also a cheaper and capable option in lieu of an SoC with an Ampere GPU). Keep in mind, these cards can achieve these results using unofficial emulation and inefficiently-optimized software modding on PC.
Please show me links of a pc running Xenoblade 2 at 4K/60fps…and I can show you why you are misguided on this argument.
So, since you've made the case that this is an iterative revision with likely few to no exclusives intended primarily to extend the Switch's lifespan to 2027, it doesn't need to achieve more than that
It needs to have the bare minimum to DLSS a 4 year old game to 4k/60fps while being clocked extremely low and drawing about 25W.
That’s what we are pretty much looking at with this Drake model, it seems.
I'm sure Nintendo saw the value in DLSS as well, but Ampere isn't required to achieve it.
If you can prove to me that going with Volta architecture…with less efficiency and having 1st gen tensor cores instead of 3rd gen and having half the FMA throughput from the tensor cores and less bandwidth capabilities…instead of ampere could reasonably perform DLSS 4K/60fps functions with extremely low gpu/cpu clocks and drawing only 25W…then I will agree with your premise.
Until then…
And since you think this hardware is only to last 4 years and will not be sustaining its own software library as an iterative revision to be replaced by a successor in 2027, there's no "future-proofing" required. Saying it needs to be future-proofed is actually working against your own argument that this is merely a 4-year stopgap.
I expect this to be the lower end option after the next power upgrade model is released. It’s not a stopgap. Dunno where you got that idea from. It’s simply meant to drive engagement during the latter half of the Switch cycle.
And “future proofing” in terms of how this Drake model will be the baseline going forward with Switch (always targeting a low end portable profile and using DLSS to enhance docked profiles). This is the way forward, so this model will represent how Nintendo designs for decades.