Capcom producer Yoshiki Okamoto says Nintendo was the only one making steady revenue from NES game carts. Capcom’s profits really took off with the PS1 >Former Capcom producer Yoshiki Okamoto spoke at length about why third-party NES developers faced "paper-thin" profit margins and what made the PS1 different.>While acknowledging that there may be some exceptions, Okamoto says that aside from Nintendo itself, most companies involved in the production and distribution of Famicom game cartridges 40 years ago didn’t make much of a profit at all (including retailers), despite the console selling 60 million units and creating a huge market.>“Let’s say a Famicom cartridge sold for 10,000 yen at retail. Out of that, 3,000 yen went to the retailer. 4,000 yen went to the software developer, like Capcom, and 3,000 yen went to Nintendo. Out of Nintendo’s 3,000 yen share, about 1,500 went to manufacturing contractors. Since Nintendo got paid upfront for the exact number of copies, manufactured the cartridges, and delivered them, what happened after that didn’t matter to them. In other words, only Nintendo had a guaranteed profit,” Okamoto explains. >“Capcom’s profits skyrocketed with the switch from cartridges to discs,” he comments. The biggest factor was the difference in how Sony handled returns compared to Nintendo. >“Let’s say Capcom paid Sony 1,800 yen per disc. The manufacturing cost of the CD was 200 yen, and the remaining 1600 yen was Sony’s share.” However, if Capcom were to return unsold CDs, Sony would give back the 1600 yen they took as their share, only charging the 200-yen manufacturing cost. Nintendo did not do this, which made leftover stock such a big expense for third parties>Famicom’s cartridge system “really only benefited Nintendo,”
How many times are you going to make this threadThis whole thing is a giant exageration anyway. It's based on facts yes, but if they "weren't making money", why would they have made 30+ games on the system. Also, this practice wasn't just NES/FC or even just Nintendo, Sega did the same thing. The entire way it's written is, again yes based on facts, but manipulative "nintendo bad".
>>12890215ThisIf they weren't making money why don't just move to Sega?
>>12890230or the pc engine, which outsold the famicom in 1989 and was the leading platform of that year
>>12890230>>12890272>If they weren't making money why don't just move to Sega?Nintendo is well known for their highly restrictive contracts which resulted in studios like capcom licensing their games out to sega to be developed for their hardware which only further abstracted the revenue stream. If you were a licensed developer for Nintendo, you were not allowed to release software on the competition which had a much smaller market share. Nintendo's monopolistic practices eventually fell apart.How do you not know this? This is like video game trivia 101. You aren't pretending to be retarded, are you?
>>12890459None of that matters if you ditch Nintendo and make games exclusively for the other platforms. Namco did this exact thing and supported PC Engine for a while. In addition to what the other poster said, developers could've also made games for Japanese computers such as MSX and PC88 or PC98. If Nintendo carts generated little to no profit, then the developers were stupid to partner with Nintendo for so long.
Is this the new spam thread? Would the OP happen to be australian by any chance?
>>12890481>None of that mattersExcept you know, majority market share (also obtained through monopolistic practices.) It was so bad NAMCO took Nintendo to court over it. PlayStation's model saved the industry.
>>12890587>n-no they couldn't make systems for OTHER consoles>but PLAYSTATION
>>12890210>schizo lolcow blogpost>>12890587>PlayStation's model saved the industry.Industry wasn't in need of saving. It wasn't dying, wasn't in any trouble. All sony did was make it slightly cheaper for themselves and developers to make software for it. Boggles the mind how fucking dumb you retards are on this board. What happened retard? can't post enormous walls of text anymore?
>>12890210Always been known that Nintendo was scummy as fuck, wasn't until the GameCube when Iwata took over that they tried to mend shit with so many developers.>>12890587>PlayStation's model saved the industry.Wouldn't say save, but definitely was better than whatever Nintendo was doing.
>>12890587You're twisting my words. None of what you were talking about (Nintendo's restrictive licensing) matters if developers just avoid Nintendo altogether. You can't be bothered by Nintendo's licensing if only make games for Sega, NEC, etc. Also, what good is Nintendo's majority market share if the developers supposedly earned little to no profit? You'll make more profit making PCEngine games if you're getting a bigger slice of the revenue.
>>12890459>If you were a licensed developer for Nintendo, you were not allowed to release software on the competitionIt was an exclusivity contract for games published on NES. There was no rule that companies couldn't make different games for other systems.
>>12890618>It wasn't dying, wasn't in any troubleWronghttps://mdshock.com/2022/05/09/a-second-atari-shock-the-decline-of-the-16-bit-console-era/>“It’s almost like a return of the 1982 Atari Shock,” said one expert in the game industry.>The game industry has always been characterized as unstable, but just after a large growth phase that involved a rapid increase in the number of personnel and branch offices, the degree to which the market has now shrunk has caught everyone off guard and has left the company holding a huge quantity of unsold inventory.>“The wave that brought us here was huge, but the tide has turned very quickly,” said Sega director Shunichi Nakamura in reference to the state of the 16-bit console market in Europe. At its peak in 1993, Sega’s revenue in Europe was about ¥60 billion, but now it has shrunk to one-third of that, around ¥20 billion.>Sega has not been the only company to suffer. One large software company stated, “There is not a single company that has been able to turn a profit in the European market>According to Sega’s Nakamura, “Through large-scale mass production, Sega has been able to reduce the manufacturing costs of its 16-bit console to the point where we aren’t losing money on production. However, we can’t earn a profit because the software—the most essential part—is just not selling.”
>>12890748To be fair, the real cause of this was how stagnant the industry was in 1994. You never hear anyone say "1994 was my favourite video game year!" for a reason.
>>12890507>Is this the new spam thread?Not OP, but proofs? use warosu or desuarchive.
>>128907961994 was host to a minor crash due to difficulties with regard to cart production, if my memory serves correctly. Not 100% on this, more like 70~80%
>>12890618You are one of the retards, guy who still doesn't know what a lolcow is but can't seem to stop using the word.
>>12890507it's that or auster's employer, the anime 64 spammer.
