BLKPALADIN Nintendo's net worth was higher then 23 million but to my knowledge they only had 13-billion in reserve. Today I have heard that is above 18 billion, Nintendo could sustain massive losses PS3 style losses for two to three generations. Even once Nintendo runs out of its reserves the company has enough assets it could sell to keep it running another 2 generations of PS3 losses before the company would genuinely be dead.
Nintendo is not going anywhere. The company would not allow itself to take PS3 level losses more then a generation either. In fact it is doubtful they would be willing to take them even one generation. Even at their worst Nintendo has always been profitable till this last fiscal year!
The reason Nintendo took a loss was its choice to go for market share over profit margins. Nintendo has realized with Wii/DS that having a superior market share is far more lucrative in the long run then a smaller marketshare that is profitable. In other words they are adapting Sony and Microsoft's business model a tad. Though unlike Sony Nintendo is not going to take a billion to two billion dollar loss launching a new platform! A 500 million dollar loss is nothing and very reasonable!
-JC7
"In God We Trust - In Games We Play " - Joel Reimer
