a'la mode
Member
I've always said it would take a generation for this to catch up to them. The effect was never going to be immediate.
In a decade the core reason Nintendo will still have the best margins of anyone will still be because they never budged on exclusivity to start the erosion process.
They have it today because they didn't budge 10 years ago.
Nah, that's nonsense. Porting old games to PC is not erosion of exclusivity, it's just that there are two kinds of people - those who understand what market saturation is, and those who don't.
Nintendo's profit margins are what they are because they sell cheap hardware at a profit (and the lower price makes it an appealing platform for many), where the competition pushes more expensive hardware out at a loss to drive software sales. Their first party games are not that expensive to produce either while they're still sold at premium prices similar to higher end platforms.
They could port TotK to PC right now and print money and they would lose nothing in the process, but Nintendo will remain a stubborn old goat, leaving money on the table.