Without getting too much into bullshit here: Why doesn't Nintendo just create games with their IPs for XBOX ONE and PS4? Or future consoles?
I like to think that Nintendo's profit model is part of what helps those games quality-wise. Since software isn't Nintendo's sole revenue stream they don't have to rush the games out and can actually release what feel like finished products. Blizzard has WoW, Epic has Unreal licenses, Valve has Steam, and Nintendo has its hardware.
It also undermines their handheld business, which is actually more important to the continuing success of the company.
Even with the ridiculous success of the Wii, it was still outsold by the DS family by 50 percent. They sold 100 million Wiis, and 150 million DS systems.
We tend to focus on the console side, partially because the WiiU performance is hilariously bad in that arena, but the secret about Nintendo that nobody talks about is that their handhelds have been enough to keep them afloat basically since the release of the original Game Boy.
It's also why people need to stop making Sega comparisons. Sega dropped out of the hardware market during the Dreamcast era, but they lacked the benefit of a Nintendo sized thriving handheld business; the Dreamcast also followed the amazing successes that were the Sega CD, 32X and Saturn while the WiiU is coming after Nintendo's most successful console machine ever.
This is part of what I always think when people throw out comments about the doom of the entire company. This and Nintendo's profit margins. N64 and Gamecube may have gotten stomped numbers-wise by Sony, but they didn't actually lose Nintendo any money. Shit, despite Nintendo's sales last year the company actually RETURNED to profitability after posting its first loss in 30 years.
And everybody also kind of ignores one of the biggest factors in Nintendo's profits: the yen. Nintendo posted that loss when the yen got strong against the dollar (the currency of most of the consumers who buy Nintendo's products), and returned to profitability when Abenomics kicked in.
Nintendo definitely needs to do something, but the end of its hardware business is nowhere near imminent. It still has fairly significant breathing room before things become truly critical.
Aight I think I'm done posting about Nintendo tonight.