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Loud_Hot_White_Box on 14 December 2008
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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

Nintendo 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)

 

 

Yes, your last point is true: Nintendo has been paying for some things in dollars lately.  I wonder if Sony could do the same; it's about the only thing they can try.

As I've posted before, the strength of the yen (currently a dollar buys only 91.65 yen) is harming Sony's ability to cut prices.  Meanwhile MS is more able to cut prices in Japan and EU because the dollar is weaker vs those currencies.