The Yen is Killing Sony - Is a PS3 Price Cut Even Possible for 2009??

[FishyJoe]

NJ5 said:

woopah said:
this will also cut into nintendo's profits as well, luckily its got the resoruces to not be as badly affected

intendo has a ton of advantages over Sony to weather this storm:

1- Higher profit margins (20-30% as opposed to 1-4% in Sony's case)
2- Their products are more recession-proof
3- No debt (as opposed to $10 billion in debt in Sony's case)
4- They make money on everything, not just software
5- None of their products is declining (in Sony's case the PSP and PS2 are)
6- From what I read, they have a higher proportion of expenses in foreign currencies (not sure about this one)

 

 

Another huge factor is Nintendo's expenses are minimal. They have 3700 employees compared to Sony's 180,000 employees. They don't have big offices and facilities around the world. All those things are huge ongoing expenses that can't be shed easily.