How should Nintendo use the money? What could be the next step?

[Pristine20]

Hawkeye said:

Kyros said:
I think how they should use the money is not a valid question. It displays the same misunderstanding of a market economy as the idea that Microsoft with all of its cash should outspend its competitors.

In an theoretical world Nintendo wouldn't have the cash but its shareholders. They could either decide if Nintendo could use this cash and create a decent return on investment by investing it or if they could get more profit by investing it elsewhere. Likewise if Nintendo had an expansion plan that promised lots of money which they didn't have they would go to a bank or their shareholders to get the money for this.

But of course we are in a practical world so money a company has is far easier to keep than to get new one.

Don't the Higher ups in Nintendo own a majority of the shares anyway? Why would they vote to give the money to shareholders then? It would make more sense for them to give themselves massive raises.

...

Anyway, I think the best use of the money would be to dramatically expand their first party development arm, perhaps doubling it. Nintendo could use its vast reources to syphon off the best and brightest to new stuidios they create, crippling studios that are struggling due to overly supporting the HD consoles. If Nintendo follows this strategy and is just as sucessful as they are this gen, in 2 gens time they could probably have a highly sucessful, self sufficent console and massive profits.

 

This is the most likely course of action.  Nintendo is a corporation and thats what corporations are about (sony and M$ included). Don't think it means free games or anything else in wonderland. Just ask former Exxon CEO about his 500 mil retirement money and you'll know what Iwata & Miyamoto probably have up their sleeves.