Sempuukyaku said:
Well.... Nintendo is what, a $40 billion dollar company now? They have a higher market cap than Sony, at $34 billion. I think we need to put aside the perception that Nintendo is a small time company. They are a big, powerful corporation that COULD launch their systems at a loss if they wanted to. It's just that they do not see it financially feasible to do so. Their focus is on profits, not market share. And that's a focus that I completely agree with 100%. |
They may be a 40 Billion company now, but they are a single division company unlike Sony and MS. Both of them can afford to have one division in the red for a couple years as long as their other divisions are profitable.
If Nintendo were to take on the losses MS or Sony did/are it would put them out of business or at least make them a poor company to invest in, greatly reducing their value and cash flow. If they absorbed losses for Wii and it failed, Nintendo could not recover. It'd be game over.
