Nintendo has Moneyz in the bank .... a lot

[Ail]

NJ5 said:

Ail said:

HappySqurriel said:

$10,000,000,000.00 at 3% interest (above inflation) works out to $300,000,000 per year ... If that interest was re-invested into videogame development it would (probably) work out to 20 to 60 Wii games, or 50 to 150 Nintendo DS games.

I'm starting to wonder what could potentially compete with Nintendo if they could increase this cash position to $20,000,000,000 (or more) before the next generation begins ... If one console manufacturer can fully fund their entire development with the interest off of the cash they have how could anyone compete against them?

 

Microsoft and Apple each have 25 billion$ cash on hands, take or add a couple billions..

 

I doubt the cash is invested at 3% interest of higher anyway. It is probably in the safest possible investment vehicle. Nintendo isn't a financial company playing with its cash.

Finally after taxes and stuff I doubt that cash generates more than 50 million $ of interest over a year....

3% investments have very little risk. Heck, I have a savings account which pays more than that...

 

 

Not these days and for those amount of money.

10 year treasury note is probably the safest 3% return investment but with fluctuation in the bonds market they don't necessary make your cash available anytime you want. My guess is Nintendo cash is invested in a short term stuff to make it available on demand. And short term interest is quasi nill these days...

 

The reason I say they don't make 300 million $ of interest is that it would have appeared in the latest financial results and there weren't 300 million $ of financials profit....