BlkPaladin on 14 May 2012
| Joelcool7 said: 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! |
Yeah I'm tired and I wasn't going to do research to jog my hazy memory. But yeah that sounds correct. As I continued to edit my orginal post, I added, this (the yen/price drop with the 3DS) just happened during their downswing that they seem to get at the end of each console gen. They are a healthy company and one of the only companies that I see that would survive the oft predicted contraction in the game-only console market. (Its coming the question is when)
And to add to the post above: That is why they are one of the few companies in the world that still give out dividens (gosh my spelling is normally bad....), I think Disney is another. They have 0 debt, cash on hand so they can afford to share the wealth with their stock holders.
