It is quite ironic to call switch niche and then try to imply Deck, a real niche product, in any way made Switch lose its monopoly over the market
deck doesnt really compete witch Switch.
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81% of Nintendo's software revenue came from first-party in the last fiscal year
- Thread starter Red Kong XIX
- Start date
deck doesnt really compete witch Switch.
This is inflated because it is measuring dollar revenue and unlike Sony, Nintendo only reports their 30% on 3rd party software
Crazy percentage. Obviously Nintendo is an IP powerhouse like no other, but you could call third-party almost irrelevant for them, with it only making up 18.8% of sales. Curious if this will change noticeably on the Switch 2.
This also means Nintendos revenues are understated because of how they count licensee revenue when comparing to PS ans Xbox.
You need to inflate the 3rd party share dividing into 0.7
The result is still pretty strong 1st party sales but historically the actual figure is closer to 50% of all software is 1st party
Nevermind. I see someone brought my observation up earlier.
not really that surprising.
Look at all those 10+ million seller titles on the Switch from Nintendo IP's, where third party devs would love to have in total sales regardless of number of platforms. Which Nintendo can achieve on only a singular system in one console generation.
Even if there was/are a decent number of 1m+ sellers on the Switch from third party developers every year. The Nintendo software of Pokemon, Mario Kart, Mario, Smash, Zelda all of which are evergreen titles will have an overwhelming presence in total sales every year especially with the frequent output Nintendo has been allowed by merging their handheld and console studios.
Look at all those 10+ million seller titles on the Switch from Nintendo IP's, where third party devs would love to have in total sales regardless of number of platforms. Which Nintendo can achieve on only a singular system in one console generation.
Even if there was/are a decent number of 1m+ sellers on the Switch from third party developers every year. The Nintendo software of Pokemon, Mario Kart, Mario, Smash, Zelda all of which are evergreen titles will have an overwhelming presence in total sales every year especially with the frequent output Nintendo has been allowed by merging their handheld and console studios.
And if the Switch not being a good place for AAA titles mattered it wouldn't have sold like it did.
This isn't 2004 anymore. Smartphones exist in the pocket of almost everyone. The mobile gaming market is bigger than console gaming. Plus the Switch is a hybrid not a pure handheld.
Gasp. Omg no way.
Seriously though 3rd parties for the most didn't fully support that switch so it was basically indies and Nintendo 1st party that has to do all the lifting and we saw how successful that was. Though I don't think anyone would've predicted how insanely successful Nintendo truly was with multi million sellers coming out their ass. TOTK last year managed to beat the likes of FIFA in some places, a legend of Zelda game is now able to compete with FIFA. That would've been unheard of years ago.
Seriously though 3rd parties for the most didn't fully support that switch so it was basically indies and Nintendo 1st party that has to do all the lifting and we saw how successful that was. Though I don't think anyone would've predicted how insanely successful Nintendo truly was with multi million sellers coming out their ass. TOTK last year managed to beat the likes of FIFA in some places, a legend of Zelda game is now able to compete with FIFA. That would've been unheard of years ago.
And this is why console gaming has declined in Japan, this rising tide has not lifted any other boats lol
It has for the developers that supported the system instead of assuming the PlayStation was the future.
I mean Nintendo's success is rather irrelevant to Sony not being able to sell any software.
Look up sales figures for previous generations, it's Sony's market that floundered not the whole market.
Any company that bet on Sony's platforms shared Sony's fate that's all there is to it.
This is a percentage for the 200m software?
If yes that's not the whole picture.
Nintendo don't count Digital only in their software total number, digital only games are the majority of eshop games.
Actual software number totals could be 300+ millions and 100 of those could not be 1st party(no 1st party is a digital only game iirc, maybe the Kirby gourmet and good job??), so different proportion
If yes that's not the whole picture.
Nintendo don't count Digital only in their software total number, digital only games are the majority of eshop games.
Actual software number totals could be 300+ millions and 100 of those could not be 1st party(no 1st party is a digital only game iirc, maybe the Kirby gourmet and good job??), so different proportion
Percentage is revenue based according to Daniel Ahmad
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Ok, didn't find any proper explanation in the documents themselves if this is based on units or revenue, but I found an old thread from Daniel Ahmad, and he also says this is revenue based:
www.resetera.com
Microsoft is bascially a black box nowadays, but Sony still discloses some information about this. These are their last 2 full FYs:
So for FY21 its 303.2m total full game software unit sales, of which are 43.9m are first-party, so 14.48%.
And for FY22 its 264.2m total full game software unit sales, of which are 43.5m are first-party, so 16.46%.
Nintendo generates 85% of software revenue from first party titles (and why Nintendo reduced its hardware forecast)
One thing that I think a lot of people gloss over in regards to Nintendo is how reliant they are on self published titles to drive hardware sales. Nintendo's core business is still very much dedicated console hardware and software, with its mobile games/amiibo/other business only accounting for...
www.resetera.com
Microsoft is bascially a black box nowadays, but Sony still discloses some information about this. These are their last 2 full FYs:
So for FY21 its 303.2m total full game software unit sales, of which are 43.9m are first-party, so 14.48%.
And for FY22 its 264.2m total full game software unit sales, of which are 43.5m are first-party, so 16.46%.
You CANNOT do that. If 18.8% of your sales disappeared overnight it's a disaster even if it's Nintendo.
With success stories like Suika games(7m iirc) and many indies selling best on switch I really think total software is much higher…
Difficult comparison, Sony counts all software sales, Nintendo excludes digital only software(the majority of eshop games and all 3rd party minus a couple I'd say).Ok, didn't find any proper explanation in the documents themselves if this is based on units or revenue, but I found an old thread from Daniel Ahmad, and he also says this is revenue based:
Nintendo generates 85% of software revenue from first party titles (and why Nintendo reduced its hardware forecast)
One thing that I think a lot of people gloss over in regards to Nintendo is how reliant they are on self published titles to drive hardware sales. Nintendo's core business is still very much dedicated console hardware and software, with its mobile games/amiibo/other business only accounting for...
Microsoft is bascially a black box nowadays, but Sony still discloses some information about this. These are their last 2 full FYs:
So for FY21 its 303.2m total full game software unit sales, of which are 43.9m are first-party, so 14.48%.
And for FY22 its 264.2m total full game software unit sales, of which are 43.5m are first-party, so 16.46%.
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I mean, it obviously wouldn't be great, but they could easily survive. If you take away third-party from Sony or MS, you basically can shut down the whole operation.
Not really a comparison, since Nintendo's disclosure is revenue based, and Sony's is units based. Only put that in there because Ahmad said in that thread that Sony/MS operate on the 80/20 model (20% of sales are first party, 80% are third party), which still seems to be true for Sony. Put that in there more for myself out of pure interest lol.
Yeah this checks out, I don't think I've bought a single third party title for Switch since it released.
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There is no misinformation in OP. Never said its units or revenue based in there. Will make a threadmark that it is revenue based though.
Just like Sony they will have to port to PC eventually for survival, at least Sony realized it first.
I was referring to the %split, the Sony one is accurate but the 81% first party for Nintendo is without digital only games I think(they usually don't report those in the total number of software sold). If that missing number is 120m for example the split would be 50/50(unit based of course:)).
I don't think you intentionally tried to mislead people, but clearly from the comments people are taking this to mean third party sales are low.
They aren't understanding the ratio is about Nintendo's royalties, not actual third party revenue.
Or to put it another way, the ratio can still be above 70% even when third party games have higher unit and revenue sales than first party ones.
It doesnt make sense to say third party sales are irrelevant on Switch, when they are likely to be higher than first party sales unit wise.
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I think Sony is fighting for a bigger margin so it's inevitable for them. Nintendo operate differently and their profit margin is disgustingly high:)
But that's the thing, they don't because their business is doing great there.
You'll notice that Sony do discount their software quite a lot while Nintendo will do occasional sales but they will try their hardest to keep the value of their software high.
Going to other platforms goes against that.
Read the comments - it has misled people. Most people in this thread in fact. Every other post is someone chiming in with "obviously third parties don't sell on Switch" when its total nonsense. More than 50% of lifetime Switch software sales are from third parties.
So irritating to have an OP happy to basically let people spread misinformation around as long as its fitting into their agenda. Just make it clear for goodness sake instead of being bone headed
Based on what? Even taking into account rising development costs, Nintendo's software development philosophy isn't even remotely similar to Sony's.
Come on poster. The implication in the OP is sale units and not revenue.
And it might be even worse than that if that data is about revenue generated by 1st party sales vs 3rd party royalties.
of course there's no source in the OP so...
It's not unit sales, so we can't do this kind of calculation.
Exactly!
It's 100% of first party revenue on Switch, vs. 30% of third party revenue on Switch.Ok, didn't find any proper explanation in the documents themselves if this is based on units or revenue, but I found an old thread from Daniel Ahmad, and he also says this is revenue based:
Nintendo generates 85% of software revenue from first party titles (and why Nintendo reduced its hardware forecast)
One thing that I think a lot of people gloss over in regards to Nintendo is how reliant they are on self published titles to drive hardware sales. Nintendo's core business is still very much dedicated console hardware and software, with its mobile games/amiibo/other business only accounting for...
Third party unit sales are very likely higher on Switch than first party unit sales.
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Also saw that claim that they don't count digital only games, but couldn't find any good reference for that. Daniel Ahmad says it's the percentage of their total software revenue, which sound to me that this is simply all the revenue they made with first-party sales and third-party royalties.
Shouldn't we be able to figure out how much of the actual revenue is from third-party btw?
Like, of the 81% first-party revenue, they got 100%. So 81 points.
And of the 19% third-party revenue they got 30%. Calculate it times 3.333 to get to the 100%, so ~63 points.
81+63=144.
So first-party software is ~56% and third-party software is ~44%.
Maybe this thinking is wrong, don't know.
I called you out for not including information and you had to be educated about things multiple times, it's okay if you made an uneducated thread but the edit button exists to correct it. Don't double down on ignorance.
The thread title and opening need to be updated, it is clear people are going off misinformation and jumping to conclusions. A threadmark is not enough.
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The information you wanted me to include has nothing to do with the first-party/third-party split. That's why I did not include it.
Also, where did I double down on ignorance?
I searched in the slides and found nothing that pointed to revenue or units, but then found an old thread from a well known industry analyst were he claims it's revenue based and threadmarked it.
Tell me what you think is my agenda.
Fair. Will do that and ask a mod to update the title.
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Yeah revenue makes more sense I'm pretty sure when looking through one of the Nintendo sales info posts on Install Base a while back I saw that like 48% of sold games on Switch are published by them, for what they track at least which notably doesn't include digital only titles like most indies, so it's even less in reality.
Red Kong XIX
please include the source as well,
makes no sense to provide this kind of info with just "trust me bro" kind of reference.
please include the source as well,
makes no sense to provide this kind of info with just "trust me bro" kind of reference.
That can give us a rough estimate yes. First party games will have a higher average price than third party ones, so we are probably looking at first party being the majority in terms of revenue, and third party being the majority in terms of units.
No, third party are and is doing very well on Switch, Nintendo 1st party is just doing that well