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Forums - Nintendo Discussion - Pachter: If the NX flops, Nintendo will still have 9.5 Billion dollars in the bank (They have 10 last time Pachter checked)

Lawlight said:
thismeintiel said:

Yea, the Wii U did a number on them.  If the NX is a repeat of the Wii U, or even just slightly more successful, Nintendo will be done with HW.  My guess is they will try to go mobile before they go 3rd party on the PS or XB, but we'll see.

I just checked and it was US$15.4B back in 2010. So, that's a US$6.8B drop in 6 years. That's with the 3DS's success. The NX needs to make a big impact if they want to combine handheld and console sales.

You might want to check again, For Fiscal Year Ended 2010, it was $886,995 Million Yen Cash + 365,326 Million Yen for Short Term Investment (1,251,000 Million Yen) and now it is For Fiscal Year Ended 2016 $909,340 Million Yen for Cash and Short Term Investment. 

(The reason my numbers were off, is they changed how it was presented, which to be fair is just presentation.



 

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Platina said:
It's about the brand name though, not just how much money they have in the bank

Not really, assets/liabilities are the real deal, companies always try and bullshit and flub on things like "brand value" because they can just make up any arbitrary number they want. 

Sony is not the brand they used to be as a whole anyway, no one buys electronics just because it's a Sony anymore, it's not like 1988 anymore. 



Lawlight said:
thismeintiel said:

Yea, the Wii U did a number on them.  If the NX is a repeat of the Wii U, or even just slightly more successful, Nintendo will be done with HW.  My guess is they will try to go mobile before they go 3rd party on the PS or XB, but we'll see.

I just checked and it was US$15.4B back in 2010. So, that's a US$6.8B drop in 6 years. That's with the 3DS's success. The NX needs to make a big impact if they want to combine handheld and console sales.

7 billions lost in 6 years? That doesnt sound right.



KLXVER said:
Lawlight said:

I just checked and it was US$15.4B back in 2010. So, that's a US$6.8B drop in 6 years. That's with the 3DS's success. The NX needs to make a big impact if they want to combine handheld and console sales.

7 billions lost in 6 years? That doesnt sound right.

It isn't right, but even if it was, it doesn't mean the money is "lost". That's why looking at "cash" for a company is kind of a stupid metric. 

If I have $500 and instead of just letting it sit under my matress, I put $300 of it into a stock, does that mean I've "lost" $300 because I only have $200 in cash now?

Companies move assets around all the time. 

Quite frankly having a massive cash pile is actually kind of stupid, I know Nintendo's been criticized in the past for having too large of a cash pile. Better off to invest in securities or something than to just leave it sitting there. 



KLXVER said:
Lawlight said:

I just checked and it was US$15.4B back in 2010. So, that's a US$6.8B drop in 6 years. That's with the 3DS's success. The NX needs to make a big impact if they want to combine handheld and console sales.

7 billions lost in 6 years? That doesnt sound right.

Two things, it is not 7 billion, it is 3.3 Billion in terms of Cash and Short Term Investment (Short Term Investment is basically Cash, that is why large corporations do combine the two a lot), and secondly, that does not mean 3.3 Billion is what Nintendo lost, that is how much they spent on various things. 



 

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Acevil said:
KLXVER said:

7 billions lost in 6 years? That doesnt sound right.

Two things, it is not 7 billion, it is 3.3 Billion in terms of Cash and Short Term Investment (Short Term Investment is basically Cash, that is why large corporations do combine the two a lot), and secondly, that does not mean 3.3 Billion is what Nintendo Lost, that is how much they spent. 

This is just ridiculous. I dont understand any of it.



KLXVER said:
thismeintiel said:

Yea, the Wii U did a number on them.  If the NX is a repeat of the Wii U, or even just slightly more successful, Nintendo will be done with HW.  My guess is they will try to go mobile before they go 3rd party on the PS or XB, but we'll see.

It will be a fight for the ages between Sony and MS to secure Nintendo.

Meh, maybe not. Considering Sony is another Japanese company, and has a much larger appeal/audience in Japan+WW, I would suspect Nintendo would choose to go with them if they were aiming for just one. Of course, I think they would probably just go multiplat if they were going to release on a home console.



thismeintiel said:
KLXVER said:

It will be a fight for the ages between Sony and MS to secure Nintendo.

Meh, maybe not. Considering Sony is another Japanese company, and has a much larger appeal/audience in Japan+WW, I would suspect Nintendo would choose to go with them if they were aiming for just one. Of course, I think they would probably just go multiplat if they were going to release on a home console.

Sony would have no chance. Microsoft is way bigger and would offer way more money, Sony doesn't have that kind of cash. 

Asking price on Nintendo would probably start in the $40 billion range, largest thing Sony has ever bought was I think Columbia Pictures for $3.4 billion back in the 80s when they had a lot more money. 

Even for Microsoft, Nintendo's price point would be steep. Their largest purchase is Skype at $8.5 billion. 



thismeintiel said:
KLXVER said:

It will be a fight for the ages between Sony and MS to secure Nintendo.

Meh, maybe not. Considering Sony is another Japanese company, and has a much larger appeal/audience in Japan+WW, I would suspect Nintendo would choose to go with them if they were aiming for just one. Of course, I think they would probably just go multiplat if they were going to release on a home console.

Sony and Nintendo does not have a great history. I also think MS would throw money at them.



KLXVER said:
Acevil said:

Two things, it is not 7 billion, it is 3.3 Billion in terms of Cash and Short Term Investment (Short Term Investment is basically Cash, that is why large corporations do combine the two a lot), and secondly, that does not mean 3.3 Billion is what Nintendo Lost, that is how much they spent. 

This is just ridiculous. I dont understand any of it.

See Soundlight's example. You can take cash and do various things with it. Invest in other assets being a big thing. I think the key thing they did the past couple of years, was buy back stock about 1 billion of that 3.3 billion right there.