many third-party publishers wanted to help Nintendo with its next console effort, which served as an additional positive network effect for Nintendo.
Average console costs dropped over time, as manufacturing scaled up, component costs declined, and the learning curve kicked in. Sony lost an estimated $100-$160 per layStation 2 when it was first launched, but reportedly made up for the loss with profits generated by selling game titles and accessories.38 Microsoft also sold consoles at a loss, in order to establish a presence in the new industry.39
According to analyst firm Jupiter Research, Sony's PlayStation 2 leads the way in the US with 43% of the games console market. Microsoft's Xbox is in second place with 19%, and Nintendo's GameCube has 14% of the market.To show there is still life in the GameCube, Nintendo said 60 new titles were coming out this year for the console.Among them are four games featuring Nintendo's cute plumber Mario.
36Recently, we found ourselves wondering why Nintendo hadn't gone the extra mile with Mario Kart 3DS, slated to arrive later this year. Sure, the game lets players fly using built-in hang gliders and customize their karts, but for the most part, it provides a similar experience to Mario Kart DS and even Mario Kart: Super Circuit for Game Boy Advance. The answer is simple: because it doesn't have to go that extra mile, especially when doing so could result in failure. Years ago, Nintendo created a series of simple formulas that served as the foundation for a variety of franchises....