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HappySqurriel on 07 August 2012
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Mr Khan said:
Soundwave said:
Mr Khan said:
Now is not the time for anyone to hitch their wagon to Sony's star, from a sheer financial perspective. Nintendo could end up with huge liabilities if Sony succumbs to its debt burden.

Also major strategic incompatibilities.


That's why I said partnership, not any type of merger. Nintendo has no part of Sony's debt, and never has to. They remain seperate financial entities. 

Like Panasonic is part of the Blu-Ray consortium, so is Sony. It's not like Panasonic has to assume Sony's financial troubles ... totally seperate. They just chose to partner together on a hardware/software format known as Blu-Ray for mutual benefit (and because no one wants VHS/Beta split ever again). 

Right, it certainly wouldn't be a merger, but the possibility of Sony's complete breakup/liquidation could make such a thing leery. What i meant by "liability" was that, if Sony were to fall into dire straits, Nintendo would be on for the entirety of the joint venture, or the joint venture would be damaged to a point that it would hurt Nintendo as well.

It's still not wise at this point in time.

Not only is it not wise for Nintendo to take the risk but Nintendo could be a major beneficiary of significant financial turmoil within Sony ...

Trouble for Sony could delay the release of their next console, might release their console at a high price (because they can't afford to subsidize the system), might have resource starved development teams, and probably can't afford to "money hat" any games. This undermines Sony's typical strategy and could result in substantial problems in the next generation. While not all of Sony's lost sales will translate into sales for Nintendo, weaker competition (especially in Europe and Japan) could help Nintendo substantially.